Mon, May 25, 2015
A A A
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner