Over time, Mike Buhl-Nielsen argues, a long bias to a long/short fund will generate value as it is not designed to hedge out every market risk and therefore every market opportunity. He explains how a good three or four years was followed by the past 12 months of poor performance for him and his long/short peers but how he benefits from a long-term view and a flexible, net-long approach.
He is also more positive in his future outlook for recent headwinds such as a revaluing renminbi (arguably last year’s story), fear of US rate rises as well as uncertainty over the success of European QE.