Despite the recent political turmoil that has shaken global markets, hedge funds have rarely been more bullish on equities. Global stocks are up 19% year to date while short-selling of equities is at an all-time low. Many hedge funds currently have a long bias in equities with the average fund up 7% for 2013. Notable performers include Chris Hohn's multi-billion dollar hedge fund TCI, which is up 34% in the past 9 months, while John Armitage's Egerton Capital has generated 23% as of the end of August. Fundamentals are increasingly being rewarded, says Ben Watson at Aberdeen Asset Management. Even though there is still macro risk and negative headlines at every turn, the fundamentals are shining through and share prices are taking more account of them than there were in 2010 or 2011 or 2012... It's a stockpickers market. (VIEW LINK)
Please sign in to comment on this wire.