Thu, Nov 27, 2014
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. Investing - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  2. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  5. Gross: Inflation is required to pay for prior inflation[more]

    Benedicte Gravrand, Opalesque Geneva: As inflation rises, every dollar will buy a smaller percentage of a good. While deflation will mean a decrease in the general price level of goods and services. These two economic conditions are both in the waiting room. The consensus would like the former to