Don Steinbrugge, managing partner of Agecroft Partners LLC, spoke last week about the best performing hedge fund strategies in 2011 and his out look for 2012. He was interviewed by Lisa Murphy of Bloomberg TV.
“It’s been a very difficult year for hedge fund managers for two reasons,” Steinbrugge says. “The first is most hedge fund managers are bottom-up, fundamentally-driven â€¦ they’re looking for undervalued securities to go long and they’re looking to go short overvalued securities, whatever asset class they’re focusing on. And this year has been all about macro, and a lot of hedge fund managers have had a very difficult time navigating through all of the macro events that we’ve had. In addition, hedge funds are going to have some beta to the marketplace, and if all the capital markets are down â€¦ which if you look across capital markets most of them are down, which is going to affect hedge fund performance.”