WEST PALM BEACH, FL (HEDGECO.NET) – A new research conducted by Lonsec Research Group concluded that the high investor demand for hedge fund investment instruments could contribute to depressed hedgefund returns in future. However, the research was optimistic about hedge funds regardless of negative remarks being made by some financial market analysts.
According to Lonsac, �Many argue that with so much money (and so many funds) in the industry, what were once rife inefficiencies will become increasingly difficult to exploit, that is, with so many managers operating similar strategies, theory clearly suggests that greater market efficiency must result and thus exceptional returns will be harder to achieve.�
The new research also reached a conclusion that hedge funds would remain an important element in creating diversification in investment portfolios. The Lonsac study examined 20 hedge funds, and all but one fund was downgraded to a lower rating. The AXA Diversified Hedge Fund was given a redeem rating, while the MLC Platinum Global Fund, an international long/short equity strategy received the highest rating. The MLC Platinum Global strategy gained an incredible 34.9 per cent for the year to June, according to the Lonsac study.
Other hedge funds performing well according to the new research included PM Capital Absolute Performance Fund, and the Portfolio Partners High Growth Shares Trust, both funds gained 34% and 31.7% respectively.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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