Time Is Right For Hedge Funds: Matthew Lynn

Bloomberg columnist Matthew Lynn feels that Hedge Funds are ready to take off. He expects a five year golden period for the industry.

There is still a lot of upside possible in asset prices, despite their recent upward rally. Even the “carry trade” which provided cheaper funds for the hedge funds in the past, is also back. Hedge funds can borrow at cheaper rates in US and UK and invest that elsewhere – in emerging markets, in currencies, in high yielding assets.

Acknowledging that there was still some pessimism in the industry, Lynn reels off some high profile hedge fund launches. Come January, Steve Mathews is expected to kick start a commodity fund. Earlier, Mathews was the Head, Commodities research at Tudor Investment Corp. Another new hedge fund – Orchard Capital Partners Limited is also expected to open its doors in Singapore.