Advanced Trading – From classic to Chinese or even Texan, hedge funds are deploying a variety of trading strategies this year to make the most of sizeable deals, including Glencore and Roche, after a freeze in deal-making dented their returns during the second half of 2011.
Known as arbitrageurs, hedge funds that make profits by betting on the outcome of mergers and acquisition activity finished 2011 with an average loss of around 2 percent, according to data from Hedge Fund Research – a far cry from the average 9.1 percent return they had enjoyed since 1990.
