Many hedge funds are just long-only vehicles in disguise, claims Cartesian

Hedge fund investors are being unsuspectingly exposed to long-bias portfolios or high-beta strategie...

Hedge fund investors are being unsuspectingly exposed to long-bias portfolios or high-beta strategies, according to the managers at Cartesian Capital. They believe many managers use index futures as the short element of their portfolios and can consequently underperform when markets come under pressure. Andrew Kelly, lead manager of the Resolution Cartesian UK Equity Long/Short fund, said: "Index shorts can be initiated quickly but end results may not be desirable. If the underlying long portfolio is mid-cap biased then shorting a large-cap index may not provide protection, as demonstra...