Long Short Strategies Delivering Performance As Year Near Close

As major hedge funds, in general, underperform major stock market benchmarks, certain Long / Short strategies, particularly in China, are keeping up. The Long / Short strategy is often burdened by short exposure during bull markets, particularly when the market beta is showered across all stocks without significant idiosyncratic differentials. During a stock market decline the strategies, which often under-perform stock market benchmarks, are expected to protect assets with their short exposure. With the HFRI Relative Value Total Index up just 4.01% year to date, niche categories are where performance is being found.

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Asian-focused Long / Short hedge fund strategies up 32.92% year to date

The 2017 stock indexes are...