Trading Platform’s IG Prime has published a white paper laying out views of 253 hedge fund managers.
In a 41-page document entitled “Hedge Fund Trends: Covid-19 vs. Global Financial Crisis,” 73% of those surveyed said health and pharmaceuticals would increase value, growing the top-ranked sector of hedge fund managers over the next year. This should be little surprise given the covid vaccine candidates, the attention and resources thrown behind treatment and PPE, the report says.
Similarly, and perhaps surprisingly, the airlines and travel sector ranked as the third most likely sector to grow in 2021.
As EasyJet records a 200% increase in flight and holiday package searches over the Christmas period, relaxing travel restrictions should give you a boost over the annual transition period, but we still can’t see the lifespan of these relaxed measures.
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IG said the outlook for financiers was largely positive, with 52% of hedge fund managers and 94% of UK investors surveyed.
Other notable stances include a 66% positive outlook for digital technology — many have questioned the sustainability of this year’s surge in tech growth stocks — and a 15% positive forecast for oil as oil manufacturing demand said it would not recover until at least mid-2021.
Below is a complete list of hedge fund managers’ views on the possibility of increased value over the next 12 months.
Health and Pharmaceuticals – 73%
Digital Technology – 66%
Airlines/Travel – 50%
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Financial Services – 46%
Retail – 40%
Real Estate – 38%
Automobiles – 36%
Cryptocurrency – 23%
Precious Metals – 18%
Index – 17%
Oil – 15%
Forex – 13%
