Hedge fund managers in Europe are in a prime position to take advantage of the transition to the euro, said Carrie McCabe, president and chief executive of Blackstone Alternative Asset Management, New York.
"Europe is in some ways (offering) some of the (same) investment opportunities we had in the U.S. in the mid-'80s," Ms. McCabe said.
Merger activity, initial public offerings and company privatizations all are expected to increase, offering added opportunities on both the long and short sides of the market, she said. Other factors that will give hedge fund managers in Europe a possible investment advantage: declining interest rates, a growing corporate debt market and increased asset securitization.
Blackstone has been slowly adding to its allocation to European hedge fund managers each year and will continue to focus on the sector going forward, she said.