- Global equity market-neutral hedge funds have lured investors as they can deliver better returns in times of global rates uncertainty and geopolitical tension than traditional stock markets.Equity market-neutral hedge funds execute strategies that capitalise on discrepancies in stock valuations by purchasing undervalued securities and selling overvalued ones, making them less exposed to fluctuations in broader market indices.
The data also showed the funds attracted an inflow of $942.8 million in the first quarter of this year, compared with an outflow of $95.9 million in the previous quarter."With a strong start to the year, I expect equity market-neutral hedge funds to continue their success through Q2 and Q3 of this year, especially compared to the market as a whole," said Jeff McClean, chief executive officer at Solidarity Wealth.