Wed, Sep 2, 2015
A A A
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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Activist News - Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping, Meet Europe's best activist investor[more]

    Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping From Businessinsider.com: Carl Icahn has picked his next target: Freeport-McMoRan. Icahn and a group of other investors have snapped up an 8.46% stake in mining company Freeport-McMoRan, according to a j

  3. North America - Hedge fund manager Ray Dalio’s challenge to the Fed[more]

    From Newyorker.com: For some reason, Janet Yellen, the chair of the Federal Reserve, decided to skip this year’s annual Fed conference in Jackson Hole, where monetary policymakers from the United States and abroad get together with some prominent academics to discuss the big issues of the moment. Th

  4. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  5. Opalesque Exclusive: Foundation returns slide, but commitment to alternatives remains[more]

    Bailey McCann, Opalesque New York: Private and community foundations posted returns of 6.1 percent for the 2014 fiscal year (January 1 – December 31, 2014), down from the 15.6 percent return reported for FY2013, according to the latest Council on Foundations–Commonfund Study of Investment of End

 

banner