The long/short equity strategy is comin' back, according to Dave McMillan, Partner at Mercer Investment Consulting.
Companies are looking to take back their marketshare, he says, and that “creates winners and losers.” He says that moving forward, the long/short strategy will also offer a good risk-reward balance.
McMillan also recommends acting on an event-driven strategy. With all the recent tumultuousness in the markets, savvy hedge funds can find big opportunities in this realm.
He says banks in Europe should soon be looking to repair their balance sheets, so investors will see more asset sales. Hedge funds should be well positioned to provide that necessary liquidity.
“Put that cash to work,” he says.
McMillan leads hedge fund research at Mercer Investment Consulting. He has built and managed more than 30 hedge fund portfolios over the course of his career. David has more than 18 years of experience in the financial, banking and investment advisory industries, including more than 10 years dedicated to hedge fund research and investing.
He will be discussing all things related to liquidity and hedge funds at the Alpha Institutes CIO Summit in New York City on October 26 and 27.