As the Covid-19 pandemic shows the earliest signs of drawing to a close, there are split opinions among hedge funds regarding what the next move should be.
The two differing opinions sit with the market rebounding quickly once things get back to normal, and a further crash as a response to the eagerness to return to normal sooner than advised.
Hargreaves Lansdowne and Elliot Management are warning of further market declines.
Peter Hargreaves of Hargreaves Lansdowne told the Mail on Sunday;
“I don’t think the rout is fully done.”
Peter goes on to explain that an early release from lockdown will lead to a repeat incident, initiating a second lockdown.
The industries in their crosshairs include; travel, entertainment and energy industries.
In contract many funds are looking to capitalise on a repeat of the rebound from the 2008 crash.
In fact, the industry has seen an increase in new fund launches (8) since the Covid-19 Lockdown as firms are confident that current conditions are ideal for their strategy and consequently a rebound.
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