Wed, Nov 25, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Alternative asset manager FRM believes 2012 will afford better opportunities for hedge funds due to diversity of sources of return

Monday, March 05, 2012

Beverly Chandler, Opalesque London: FRM remains optimistic for investment returns from hedge funds for the coming year, citing idiosyncratic risk beta as evidence. In their Early View commentary, the firm says: "Technical factors in select risk assets are likely sources of return for hedge funds that are aware of market dynamics" FRM writes. "Though this represents risk asset beta, it does not necessarily follow that these assets will be correlated to broader markets. For example, in RMBS markets in the US, investor demand has been increasing and concerns over selling pressure from European banks has abated, leaving scope for improvement in pricing levels irrespective of underlying fundamentals (which also happen to have improved in the past few months)."

The firm also finds that cash-on-cash yields in non-agency RMBS are attractive in the extreme scenario but also offer decent asymmetry in the positive scenario. Another example of potential investment returns is, FRM says, in Emerging Markets where policy action is becoming increasingly divergent. "For example, the Brazilian central bank has maintained the view that it can bring its policy rate down to single digits; consensus estimates suggest 175bps of policy cuts in 2012. In Asia, easing policy is expected to be slower as policymakers wait for signs of sequential decline in inflation (eg in China and India). Contrary to this, tightening policy conti......................

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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  3. Chicago-based Achievement A. M. is shutting down hedge fund following losses[more]

    Komfie Manalo, Opalesque Asia for New Managers: Achievement Asset Management, a Chicago-based hedge fund firm, has announced it is closing down its hedge fund operation following losses on energy market bets this ye

  4. Lyxor Hedge Fund Index up 0.1% (+0.4% YTD) as global macro and CTAs outperform[more]

    Komfie Manalo, Opalesque Asia for New Managers: Global macro and CTAs outperformed the hedge fund space and delivered positive returns last week amidst difficult market conditions, with the Lyxor Hedge Fund Index up

  5. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac