Hedge Fund Founder Says the Future of Stock Picking Won’t Come From Hedging.
For Soroban Capital Partners founder Eric Mandelblatt, the future growth of stock-picking hedge funds won’t come from hedging.
Institutional investors such as pensions and endowments are increasingly putting their money into large, market-neutral multistrategy funds and long-only funds that only bet on stocks rising, according to Mandelblatt. Those investors choose long-only funds because they’ve struggled to capture benchmark-beating gains themselves, he said.
“The capital will increasingly flow to the ends of the barbells: the pod shops and long-only stock-pickers,” said Mandelblatt, whose firm oversees $10 billion.
Multistrategy funds have surged in popularity, with many doubling their assets in recent years. Meanwhile, Mandelblatt, 49, says he’s seeing demand for long-only strategies first-hand. Last year, Soroban raised about $4.5 billion for a long-only fund in just nine months after his investors asked him to create a carve-out from his hedge fund.
Source: FINANCE.YAHOO
