Quantitative Easing A Good Bet For Hedge Funds

Jan 2 2013 | 3:47pm ET

Quantitative easing made it easier indeed for many British hedge funds to post big gains last year.

Bets that government-backed liquidity programs would boost markets paid off in a big way for the likes of CQS and Odey Asset Management. The former rose 32% through November and the latter 26.6%, The Telegraph reports.

"The masters of equity and credit trading strategies have done their homework in 2012 and reaped benefits turbocharged by an ocean of government-sponsored liquidity," Newscape Capital Group's Philippe Bonnefoy told the newspaper.

Another hedge fund expert added, "While economic fundamentals have been poor during 2012, with sluggish or negative growth and depressed confidence, the use of QE has pumped tons of money into the system which has to go somewhere, so it usually winds up in equities or bonds."

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    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…