Thu, Oct 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Emerging markets continue to offer opportunity, and a useful approach to economics for developed markets - Van Eck Global

Wednesday, June 09, 2010

From Kirsten Bischoff, Opalesque New York:

"This month [May], we played a lot on the short side," says Eric Fine, former head of emerging markets research and founder of emerging markets prop trading at Morgan Stanley. He is current Portfolio Manager of the emerging markets macro G-175 Strategy at Van Eck Absolute Return Advisers Corp. Van Eck manages $22 billion, including $3 billion in emerging market focused funds.

For Fine and his team, focusing on putting emerging market asset prices in the right valuation context to each other and to developed markets has been a big driver behind shifting the portfolio to capture performance in both upward and downward moves.

Typically, the G175 strategy focuses on fundamentals, but when technical moves are in play, the most crowded moves (typically those based on fundamental analysis) are often the ones that suffer the most. Making money every month is the focus, therefore, positions that the team sees priced well and that are cheap are left on the table until markets stabilize. "Right now the most bullish we want to be is no risk on," he says.

This has meant collapsing the portfolio's investment horizon from 3-12 months to mere hours. "For May, we pretty much had a 24 hour investment horizon," Fine says. "Shorts can really punch you in the nose because there is always the risk of intervention on the other side."

Overall, EM investors struggle to commit to market opportunities The wild......................

To view our full article Click here

Banner

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t