HEDGE FUNDS EXPECTED TO RAMP UP RETURNS ON HIGHER RATES

Investors expect hedge funds to produce higher returns with the prospect of interest rates staying higher for longer, a BNP Paribas (BNPP.PA) investor survey showed on Wednesday.

Interest rates in big developed economies have shot up since late 2021 to contain inflation, with resilience in the U.S. economy adding to a sense that rates will likely stay higher for longer than initially expected. Investors now expect hedge funds to return an average of 9.75% annually within an average of 19 months, up from 6.85%, according to the survey.

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