Allocation to sector to rise as institutions show interest

The UK long/short hedge fund sector faced a difficult time during the past year, but is now showing promise.

Returns have been squeezed in the long/short products sector as a whole due, in part, to a tilt towards long positions in many products run by managers who have come from the long-only side.

Despite an increasingly difficult environment with the number of clear shorting opportunities shrinking, there is growing interest from institutions, which has led to an increase in the number of UK lo