Despite rosier expectations, the macro picture remains bleak in the short run and investment themes remain sensitive to changes in economic policies and sovereign risk, a report by Lipper says.

The global macro picture, the outlook and market sentiment appear to plot a scenario not necessarily favourable to equity investment.

Similarly to what occurred in May, hedge fund portfolios appear to be exposed to potential risks arising from crowded trades; significant losses might materialise in case of a market reversal.

Emerging markets strategies are expected to continue benefiting from sustained investment flows into emerging markets and from economic growth increasing at a pace higher than that of more developed countries.

As the annual reporting season approaches corporate America might offer a potential for winning fundamentals-driven long/short equity strategies to lock in profits by investing across economic sectors, says Lipper.

In a low-interest-rate environment the high-yield market is likely to continue posting healthy returns throughout 2011.

The performance pendulum of fixed income arbitrage strategies will oscillate in the short run. The intermediate-to-long sector of the yield curve in those Eurozone countries with higher stocks of outstanding debt or lower confidence on sovereign debt will continue to be impacted by expectations on debt sustainability and bid-to-cover ratios.

Macro and managed futures managers are expected to continue benefiting from commodities exposure. Commodities, rather than moving in synchronization with macro fundamentals, will be driven more by supply-and-demand dynamics and imbalances.