Hedge fund managers see global growth dipping next year amid likely eurozone sovereign defaults and a slowdown in China.
The views are disclosed as part of a survey covering more than a third of the world’s hedge fund managers with $800bn of assets between them. The hedge fund managers, asked about their macro-economic views, were bleak on the prospects for 2012.
Many felt the European Central Bank should embark on further monetary easing, with just under 80 per cent of respondents saying they thought the Federal Reserve should as well. Three-quarters of those surveyed said that they thought the Fed’s Operation Twist, the programme designed to suppress long-term interest rates, was a failure.