Market Bets

Massey of Massey Quick expects to see more redemptions and closures among long-short equity funds, which have underperformed the bull market in stocks because they bet on falling shares as well as those they wager will rise. Stock hedge funds have climbed 41 percent since the end of 2008, according to data compiled by Bloomberg versus a 153 percent rise in the Standard & Poor’s 500 index.

Investors, he predicts, will end up pulling from funds at exactly the wrong time, giving up on their insurance just as stock markets tumble.

“I don’t think the next five will be like the last five,” he said. “But that’s classic investor behavior.”

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