Mutual funds and hedge funds will grow more alike as mutual fund managers increasingly adopt investment management techniques currently used in hedge funds, the chief investment officer for UBS Global Asset Management told the Toronto Society of Financial Analysts, according to Torontos Globe and Mail.
- "We will move that way," said Brian Singer. "I think what's going to happen is the distinction will change over time, that the conventional managers will be provided more flexibility to manage the market risk up and down, to go long, to go short, not just go long only."
Strong returns during the recent bull market are nothing to crow about, Singer added. "Any idiot could have performed well during this time," he said.
Going forward, mutual fund managers will be forced to use more hedging strategies to provide more consistent returns to investors, especially as compared with standard stock indexes.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.