Research firm Mathema finds that intracorrelation was lower in 2011 than it was in 2010 for managers in convertible arbitrage, global macro and long/short equity strategies. Intracorrelation is the tendency for managers and strategies to be correlated with one another. Lower intracorrelation usually means higher levels of diversification for investors in those strategies, and higher risk-adjusted rates of return.

In its report Mathema also goes into detail about market conditions, gauges investment risk for various strategies and sets the risk assessment and outlook for hedge fund strategies.

Read the entire report by clicking on the link below (PDF).

Mathema January 2012 Hedge Fund Strategy Iinsight Report

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