Market conditions limit opportunities

Professional Adviser
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UK sector neutrality is hard to maintain in current market conditions as most sectors are heavily co...

UK sector neutrality is hard to maintain in current market conditions as most sectors are heavily correlated limiting long/short stock opportunities. Philip Hardy, manager of the Polar Capital UK market neutral fund launched in mid-November, said he has eased off shorting purely to hedge a long position in a particular sector as it was becoming expensive. While the fund remains 60% neutral, sectors such as mining and telecoms are harder to short as all the stocks they contain show a high degree of correlation. This is in spite of the fact that as Hardy said, not all the stocks offer ...

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