Hedge funds may avoid PIIGS in favor of BRIC in 2010 (Reuters)  (15-01-2010)

ZURICH (Reuters) – According to Lipper, an industry expert, strong growth is expected in Brazil, Russia, India and China, while the European Commission is expecting conditions to worsen in Portugal, Ireland, Italy, Greece and Spain, in 2010.

The research shows that single manager hedge funds will see about $100 billion in new money in 2010 after two consecutive years of outflows. Average single fund returns of 10 percent will propel assets to $1.86 trillion by the end of the year, BRIC hedge fund research head Aureliano Gentilini told Reuters.

In single manager hedge funds, the alpha component, or the ability to choose securities which will outperform the broader market, will be more relevant in 2010 than in 2009, he said.

"Equity market conditions will be choppy, and alpha drivers such as stock picking skills will be more important than beta, or the ability to replicate market trends," he said.

Source: Reuters