Long/Short Equity Outlook Improving On Correlation and Dispersion Changes

By Juliana Hadas and Andrea Pompili of Neuberger Berman   The beginning of this decade was a challenging time for long/short hedge fund performance, with the overall universe having generated negative Jensen’s alpha (risk-adjusted excess returns)—see Figure 1. However, alpha has been rebounding starting with the second half of 2012—a trend we believe will continue. […] Read more »