In its recent Investor Outlook, Preqin included the following chart describing investor preferences in the hedge fund space. It shows that more than half of the allocators interviewed intend to seek out new or additional long/short equity managers in the next 12 months.
Long/short equity is, by far, the most desired strategy. But why?
As we noted in our Strategy Spotlight earlier this week, equity long/short performance has been lackluster for more than a decade now. Consider the following: