Hedge fund managers are turning to technology in an effort to boost their returns in tough conditions but the impact is being felt primarily in equity trading, as the fixed-income market resists persistent calls for automation.

Speaking at a Financial News Trading for Investors Forum in New York, Graeme Smith, vice-president at Natexis Bleichroeder, the brokerage, said despite increased uptake, technology remained no more than a tool that traders use with varying degrees of success.