Tue, May 26, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Hedge funds missed the rally - Has someone missed the point?

Thursday, May 21, 2009

This article was written by Bryan Goh, First Avenue Partners LLP, London, in reference to yesterday’s article ‘Hedge funds under fire for not spotting market rally’ (Source):

Hedge funds have been accused of missing the equity market rally begun March 2009. Let us look at an example of an equity market such as the European equity markets to see why.

Equity markets are up year to date. The Stoxx 600 for example is up some 6% year to date after a 22% drop followed by a 37% rally. Yet it has been a very difficult market for trader and investor alike. Only the truly brave make big money (I am being polite.)

Sentiment worsened almost linearly and certainly monotonically since September 2008 to March 2009. Then suddenly equity and credit markets turned and rebounded sharply. By late April, commentators began talking about ‘green shoots’ of growth and recovery. I guess even a dab of moss after a nuclear Winter counts as green shoots. Equity markets have behaved erratically. Cyclicals led the rebound, defensives lagged it. This is typical of late stage recessions and recoveries, yet fundamentals are far from healthy.

Markets, however, are driven by fundamentals only until they are driven by psychology. Healthier is ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Tiger Global tops the list US-based venture capital market[more]

    Laxman Pai, Opalesque Asia: Tiger Global Management holds on to its position as market-leader in US-based venture capital, said a study. According to Preqin, the closure of tech-focused Tiger Global Private Investment Partners XII in January means the New York-based firm has raised more than

  2. Investing: Hedge funds headed to quarantine stocks in first quarter turmoil, Greenlight's David Einhorn added a bunch of new stocks to his fund, U.S. funds rush to tech companies and battered energy stocks in first-quarter, Millennium among hedge funds to bet on virus vaccine hunters, David Tepper reveals a stake in Twitter. Here's what else the market mover is betting on, The stay-at-home and software stocks that Chase Coleman's Tiger Global is betting on now, Hedge funds pile into tiny biotech that's already soared 460%[more]

    Hedge funds headed to quarantine stocks in first quarter turmoil From Bloomberg: As the world began to go into lockdown, the biggest money managers loaded up on quarantine stocks. Netflix Inc., Peloton Interactive Inc., Amazon.com Inc. and Zoom Video Communications Inc. were some of

  3. Tech: Cybersecurity lapses tick up among investment advisers, Will we see another dot-com crash in tech?[more]

    Cybersecurity lapses tick up among investment advisers From PIonline.com: More than a quarter of state-registered investment advisers had deficiencies relating to cybersecurity, state examiners found. In 41 U.S. jurisdictions from January to June 2019, state examiners found cyberse

  4. PE/VC: Big VCs stacked billions in Q1 while smaller firms saw their haul shrink, COVID-19's potential impact on venture capital investment terms, Ten predictions for how COVID-19 will transform private equity[more]

    Big VCs stacked billions in Q1 while smaller firms saw their haul shrink From Tech Crunch: After spending perhaps more time than we should have recently trying to figure out what's going on with the public markets, let's return to the private markets this morning, focusing in on venture

  5. Tech: Fintech startup Brex closes $150m in pure venture funding amid recession[more]

    From Business Insider: Brex, the 3-year-old fintech unicorn, raised an additional $150 million in equity funding from existing investors and Lone Pine Capital, the company announced Tuesday. The cash infusion raised the startup's valuation to "around the $3 billion mark," cofounder and co-CEO Henriq