Dec
12
What Hedge Funds Will Do After the Hedge Fund Model Dies
ByAs long-short strategies take a beating, managers see niches like private debt as fuel for future returns.
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As long-short withers, firms turn to niches like private debt
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This story is part of a series on the future of investing
The long and short on hedge funds is that long and short isn’t working so well anymore.
That’s the rather simple strategy that built the $3.2 trillion industry — the once-durable buying long when you figure an equity will go up and selling short when you reckon the opposite — and that basically put the “hedge” in hedge fund. These days it’s unreliable, at best.
The techniques of the future? Think niche, like litigation finance or private debt and equity, from Deere & Co. tractor dealerships to a banana plantation in Costa Rica…
What Hedge Funds Will Do After the Hedge Fund Model Dies
