FEP - Are L/S Equity Managers Playing The European Recovery?

• We find that L/S Equity Directional managers focusing on Europe are becoming more optimistic, but in a cautious way.
• They had already reallocated to stocks sensitive to economic reopening and are now starting to move towards riskier investment cases.
• Regionally, they have reweighted stocks in core EU countries (Germany and France in particular) and in the UK, at the expense of Nordic markets which had shown to be more resilient in rougher times.
• Hedge funds outperformed markets, with CTAs' strategies taking the lead once again, favorably exposed to equities and commodities.

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