Hedge funds face challenges of 2011 with optimism

Facing the future


Hedge funds consolidated their recovery in 2010 with positive returns, growing inflows and improving business practices, offering plenty of reason for optimism heading into 2011.

Following a difficult start to the year, hedge fund performance picked up strongly in the third and fourth quarters, helped by a rally in global markers in the wake of the US Federal Reserve’s decision to inject $600 billion into the US economy in a second round of quantitative easing (QE2).

Directional strategies benefit

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