| Outlook for Capacity of Current Strategies | ||
| Strategy | Current situation Acceptable | Outlook |
| Aggressive growth | Good | Acceptable |
| Emerging markets | Good | Acceptable |
| Futures | Good | Good |
| Macro | Good | Good |
| Market neutral | Good | Good (with Europe included) |
| Multi-stategy | Good | Good |
| Opportunistic | Good | Acceptable |
| Special situations | Good | Good |
| Value | Good | Good |
| Strategy | Moderately Stressed | Outlook |
| Fixed income arbitrage | Narrowly defined strategies – stressed | Some relief in non-US markets |
| Broadly defined strategies – acceptable | ||
| Income | Narrowly defined - close to stressing, depends on strategy | Acceptable with new instruments and strategies in US and non-US markets |
| Merger/risk arbitrage | Stressed but will recover somewhat with economy | Acceptable to good |
| Distressed securities | Good, starting to be under some pressure in US | Good opportunities in Europe |
| Strategy | Stressed | Outlook |
| Market timing | Virtually dead in US for local reasons Alive offshore | Acceptable outside US |
| Pure short selling | Acceptable to stressed, depending on manager | Difficult due to nature of strategy |
| Statistical arbitrage | Stressed | May be acceptable with non-US markets |
| Convertible arbitrage | Stressed, improving | Some relief in non-US markets |
| Source: Van Hedge Advisors | ||