(Alpha-Week) Long bias hedge funds have enjoyed a good 12 months with returns of over 14%, according to data from Preqin. However, this year has been challenging for them with market volatility causing performance to drop to -0.36% and with an outlook of rising volatility, it raises questions on future performance. Market volatility tends to impact long strategies because they rely on the market going up. Hedge funds with a long bias are typically 60%+ long in the fund and short the remaining 40%. In times of market swings, short positions offer a level of flexibility.
Return to Volatility Sees Long Bias Hedge Funds Struggle
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