The Most Promising Hedge Fund Strategies for 2009

A Lipper research poll says hedge fund managers think distressed securities, global macro and managed futures will be the best performing strategies in 2009. Managers also think the industry’s high fees are set for a trim, according to a report by Reuters.

Managed futures, which we’ve mentioned recently, was the top-performing strategy in 2008, gaining 18 percent. All other strategies lost money, although global macro lost a relatively modest 5 percent.

Nearly one-third of respondents said they expect to see hedge funds reduce or even eliminate management fees in order to retain investors. Another 15 percent felt that funds would cut performance fees.

In a related story, the Financial Times reports that vulture funds, which pick over the remains of rapidly weakening companies and debt holders, are expected to offer the best opportunities in Europe this year an many EU countries experience a sharp economic slowdown.

While the outlook is still gloomy for the hedge fund industry, the survey does point out several fertile sub-categories of funds in which to focus your efforts in landing a hedge fund job.

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