Monday, May 27, 2024

Watch out for hedge fund crowding risk, says Man Group’s external alpha head



Adam Singleton, CIO of external alpha at Man Group’s solutions business, says he has “seldom felt so nervous” about hedge fund performance despite a very strong start to 2024. The reason? Crowding risk.

“Most active managers that we speak to have surprisingly positive outlooks for expected returns over the next 6-12 months, and not just because the going has been easy for the past few weeks,” he said in a note. “Potential rate cuts and healthy market dislocations are leading to expectations of good quality alpha generation across the hedge fund industry.

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