Fri, Oct 28, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Australian hedge fund investors still on risk-off but there is hope for 2012 and beyond

Monday, December 19, 2011

Damien Hatfield, director of the Sydney-based bureau of advisory group Triple A Partners, keeps on hearing the same things from investors: they’re parking their money in cash, they’re in a risk-off stance. In his newsletter for November 2011, he says that family offices have up to half of their money in cash. Not only that, but he also sees a quiet round of fund redemptions going on. Australian hedge fund managers are generally really struggling to raise assets, even those with good returns.

The investors’ risk adverseness is due to a couple of things, he says. First, "Term Deposits are still short dated but showing 6% p.a. in Australia, but as you get out along the curve, these rates start to really fall off. So why take risk at these rates?" Second, the uncertainties in Europe are a deterrent.

He believes, however, that 2011 has shone a bright light on funds of hedge funds (FoHFs), which could mean they will make a significant comeback, if not next year then soon after. His rationale is that FoHFs – and of course hedge funds - are not as volatile as equities; they hold the road.

"Looking the HFRI Fund of Funds Index, it is down 5% to end of November," he explains. "The intra year drawdown was 7%. The MSCI World is also down 5% to November on an intra year drawdown of 20%. The S&P in spite of everything that has been going on in the world, is only down 2%. But intra year it has been down 20%... The hedge......................

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. Investing - Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities, Lansdowne's Roden says likes animal genetics company Genus[more]

    Fund set up to buy illiquid hedge fund stakes finds plenty of opportunities From As ValueWalk reported back in February, earlier this year Andrew Lawrence set out to raise $250 million to $500 million for a fund that will buy stakes in hedge funds that have suspended redem

  2. Other Voices: Don’t mistake style for skill — The impact of style factors on trend follower performance[more]

    By John Dolfin, CFA Chief Investment Officer and Christopher Maxey, CAIA, Senior Portfolio Manager of Steben & Company: Managed futures have become an alternative asset class that is widely used by investors seeking overall portfolio diversification and absolute returns independent of the

  3. Opalesque Roundtable: Style drift, poor communications and credibility fatigue are biggest red flags for hedge funds investors[more]

    Komfie Manalo, Opalesque Asia: Style drift, poor communications and credibility fatigue are the biggest red flags for hedge funds investors, said participants of the latest 2016 Opalesque Investor Roundtable, sponso

  4. Barclay CTA Index down 0.40% in September (+0.10% YTD)[more]

    Managed futures traders lost 0.40% in September according to the Barclay CTA Index compiled by BarclayHedge. The Index is up 0.10% year to date. “The US Fed, in spite of its hawkish tone, opted to hold rates steady which roiled financial markets,” says Sol Waksman, founder and president of BarclayHe

  5. Opalesque Exclusive: Meet Emma, your friendly A.I. helper[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Shaunka Khire, who co-designed an artificial intelligence (AI) robot called EMMA/MANSI, talks to Opalesque