Going global on long/short equity portfolios boosts investor returns

With more and more money chasing fewer investment opportunities the returns from long/short equity funds have plenty of scope to reduce. One possible solution is to look at global funds. These are relatively new having some $39bn invested in 1990, rising to just over $1 trillion in assets today. Over the same time the proportion invested in long/short equity has risen from 7% to 44%. The process is perhaps best explained with an example. Around the middle of last year, we noted an imbalance in global energy markets, with strong demand growth not being matched by increases in supply. Mos...