LONDON (Reuters) – Hedge funds that trade on opportunities from corporate takeovers are likely to perform strongly into 2007 as takeover activity surges, industry executives said.
Merger and acquisition arbitrage funds are seen as likely to be among the hottest hedge fund performers, led by players that spot a bid target months before a public announcement.
These funds — typically classed in the “event-driven” category — are likely to be followed by global macro funds, which bet on trends in bond, equity and currency markets, and long/short equity funds.
Merger-based funds are favourites of HSBC Republic, which also positive on macro and equity long/short funds, said Jamie Murray, head of institutional sales and business development at the firm.
