Strategy
Plethora of strategy choices for 2010
Views on the best performing strategies for 2010 differ. They range from the cautiously optimistic outlooks that favour quantitative market neutral strategies benefiting from price dispersion through to aggressive plays in commodities and equities.
Investors less enamoured of asset-backed lending
In the wake of the financial crisis, opportunities have arisen for funds exploiting the unwillingness of banks to lend to small companies. Hedge Funds Review out how hedge funds are using asset-backed lending to fill the gap.
Hedge funds cautious on commodities
The rally in commodity prices has caught the imagination of investors. However, hedge fund managers believe the downside risks could be greater than most people realise.
Credit fund looks set for another good year
Founded in 2000 to take advantage of the opportunities in the European markets with the introduction of the euro, Liontrust Credit Fund has seen continued growth. Simon Thorp, head of fixed income at the company, remembers the fund managers saw great…
Emerging opportunities
US-based investment managers Prince Street Capital’s flagship long/short fund has never suffered annual negative returns, even in 2008.
Enterprising investment
TTP Ventures’ chief executive David Gee believes clean technology is set to be the highest growth economy in the UK over the next 10–20 years.
Making money from a macro-economic shift
The world is in the midst of “one of the great macro-economic shifts of the last 100 years”, according to DTAP Capital Advisors partner Hugh Warrender.
Systematic investment
Formed through a spin-off from JWM Capital Partners, Episteme Capital’s inaugural fund went live in July this year.
Warming up to Cuban investment
Alex Schmid thinks there is a rare, niche opportunity for investors in one of the few remaining territories standing outside the world’s financial markets.
Watch for the bond bubble
The credit markets have avoided becoming the next bubble waiting to burst. Nevertheless, investors should be cautious of government bonds.
Investment grade bonds offer
Increased issuance of US investment grade bonds present increased opportunities, says Scott Service, senior global strategist at Loomis, Sayles & Co. There has already been a huge rally and he is confident “there is more rally to come”.
Emerging markets, emerging assets
Investors must be wary of a still-volatile economy and pick investments accordingly. However, emerging markets are a good bet and will continue to be so, concludes Cayzer Trust Company director Dominic Gibbs.
Simple strategies are the best
Investors were shocked in 2008 when they discovered diversifying a portfolio could not get rid of risk. Economists were less unsettled. They tend to look at a whole range of views, examining data and information domestically and globally in order to form…
Interesting times for global bond market
The bond market has not been immune to the global economic crisis. Investor confidence has been shaken. However, the overall lack of liquidity has increased the importance of bond markets as a source of finance for companies and governments.
Tangible infrastructure promises stability
As investors continue to be wary of the more exotic strategies, many are looking at infrastructure where real tangible assets and investments could reap high returns. Kris Devasabai examines the interest in this sector as governments around the globe…
Artful way to make money
Art is not generally seen as an investable asset class. For some hedge funds, however, trading art can be as profitable as any other strategy. Kris Devasabai and Stephen Quigley examine how art is being successfully traded
No clear consensus emerging on star strategy performance
What strategy will be the top performer in 2009?
Replicating a winning formula proves tricky
The big question hanging over global macro is whether it can continue to outperform other strategies as it did in 2008. The majority of managers think it could still be a winner.
Returns boosted by cheap new bonds: convertible arbitrage gets a boost
Convertible arbitrage is bouncing back strongly in 2009 after its worst year on record.
Continued performance of equity market neutral strategy expected in 2009
While many hedge fund strategies are struggling, equity market neutral supporters believe this strategy is capable of not just protecting but also increasing capital in any market. Hedge Funds Review discusses the strategy.
Distressed strategy comes into play
The deep discounts on debt securities and expectations of a sharp increase in defaults have created a groundswell of interest in distressed debt strategies. Hedge Funds Review talks to fund managers about this strategy.
Mixed reception for 130/30
Despite the enthusiasm with which the 130/30 strategy was first greeted, funds using this technique have failed to attract as much interest as first predicted. Hedge Funds Review talks to a variety of managers about the future for 130/30
Quant comes back fighting in 2009: quantitative strategies
Quantitative funds have had a mixed reception. Some have managed to navigate the volatile markets; others have fared less well. Investors, however, are still cautious when it comes to putting money into what many see as complicated and risky ventures…
Hybrid appetite rapacious: hybrid private equity
With market turmoil at a high, the hybrid private equity hedge fund might see a resurgence as managers seek opportunities. The latest trends and appetite for this type of fund are explored by Stephen Quigley