Mon, Mar 19, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Along with other indicators, is the hedge fund industry's struggle to protect assets signaling a ‘double dip’?

Wednesday, July 21, 2010

From Kirsten Bischoff, Opalesque New York:

The fear of sliding from a continued, slow, recovery to the double dip of another recession has been a concern ever since the markets began to strengthen in March 2009.

Large firms such as BlackRock continue to express a (conservative) positive outlook even as they acknowledge high levels of uncertainty. “We continue to believe that a variety of structural headwinds will place limits on economic growth prospects, although we view a “double dip” recession scenario as a lower probability outcome,” says Bob Doll in his Q3 outlook.

The VIX is indicating increased worry for future market volatility, and hedge funds have spent the better part of the past three months working diligently to protect assets and, according to the Dow Jones Credit Suisse Hedge Fund Index (DJCS), have entered a new drawdown phase.

The Dow Jones Credit Suisse Hedge Fund Index shows that hedge fund performance strength seen from May 2009 through March 2010 has entered a second drawdown phase. Hedge funds saw a decline of -19.5% (against the Dow Jones Global Index drawdown of -53%) during the previous drawdown, and have currently lost -3.9% from their peak recovery (against the Dow Jones Global Index drawdown of -31.9%).

Credit Suisse recently rebrande......................

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. Performance - Hedge fund mojo is back with investor hopes at six-year high, These hedge funds produce the most consistently great results[more]

    Hedge fund mojo is back with investor hopes at six-year high From Hedge funds on the heels of a surprisingly strong performance in 2017 are raising hopes for an encore. Investors expect their managers to return 8.5 percent in 2018, according to a Credit Suisse Group AG sur

  2. Investing - Hedge funds amass big bets against world's leading advertisers, Investor Elliott Management buys tiny stake in Wipro[more]

    Hedge funds amass big bets against world's leading advertisers From Hedge funds have amassed bearish bets of more than $3bn against the world's largest advertising companies in an attempt to profit as the industry undergoes ongoing wrenching disruption and slowing growth. Funds i

  3. News Briefs - Investcorp to launch a $100 million PE fund for Omani pension funds[more]

    Bahrain-based investment firm Investcorp will soon launch a $100 million fund dedicated to Oman's Pension Funds as part of its investment plan. 'The Opportunities Fund' will be focused on private equity investments in the U.S. and Europe and will target mid-sized companies across a broad range of se

  4. DoubleLine's Gundlach sees U.S. 10-year Treasury yield rising, weighing on stocks[more]

    From Reuters/ Jeffrey Gundlach, the chief executive of DoubleLine Capital and known on Wall Street as the "Bond King," said on Tuesday the yield on the U.S. 10-year Treasury note will likely move higher and pressure riskier assets including equities and junk bonds. Gundlach, on an

  5. SEC charges Theranos CEO Holmes with fraud[more]

    Bailey McCann, Opalesque New York: The SEC has charged Elizabeth Holmes, founder and CEO of Theranos and its former President Ramesh "Sunny" Balwani with raising more than $700 million from investors through an elaborate, years-long fraud in which they exaggerated or made false statements about t