Most hedge fund managers say a U.S. recession next year is very likely, but fewer than 1 in 5 say an economic slowdown would be bad for their funds, according to a survey of fund managers released Tuesday.
An overwhelming majority of those surveyed -- 87% -- predicted market volatility would remain at its current level for the rest of this year, if not go higher.
The survey by Rothstein Kass, a provider of auditing and tax services for funds, questioned 239 principals at hedge funds with a median $492 million in assets under management.
Of those polled, 61% called a recession in 2008 very likely, but only 17% viewed an economic downturn as bad news for their funds. In fact, 66% suggested a recession would bring investment opportunities.