Thu, May 5, 2016
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n