The Hennessee Group, an adviser to hedge fund investors, says that even after this year’s spectacular rally, more good news is likely in store for equity investors.
Charles Gradante, co-founder of the Hennessee Group, said in a press release today that �we believe the �December Effect,� whereby investors choose to defer paying taxes on equity market gains until the following year, will provide additional support to the equity markets as we close out the year.”
Gradante notes that “equity markets have experienced gains during the final month of the year 70% of the time when positive through the month of November� and adds that “hedge funds have experienced gains in December 100% of the time during these same calendar year periods.�
Gradante is “more optimistic that hedge funds are well positioned for a good year on a relative basis in 2010″ compared to equity markets.
Hennessee’s findings, based on data going back to 1995, use the S&P 500 Index and the Hennessee Hedge Fund Index as proxies.
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