Fri, Sep 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Taiwanese hedge fund managers look at short-term credit opportunities

Monday, March 19, 2012

From Precy Dumlao, Opalesque Asia – Participants in the latest AsianInvestor's institutional forum held in Taipei, Taiwan have found that Taiwanese hedge fund managers are abandoning their long strategies and looking at opportunities in short-term credit and other non-traditional bond strategies.

Vincent Wu, fixed income CIO for Fuh Hwa Securities Investment Trust told delegates at AsianInvestor’s 6th annual Taiwan Institutional Investment Forum that since the global financial crisis in 2008, Taiwanese fund managers have shifted from the "buy-and-hold" strategy to "buy-and-harvest" stance in keeping with the significant jump in bond fund turn over.

Wu released statistics that showed a drop from 0.7% to 0.3%, in the five-year Japanese government bond yields from 2002 to 2003 that resulted in a one-year capital gain of between 1 and 2%.

He told the delegates, "Last year there were massive fund flows into long-term emerging market debt, but this year the fund flows started to enter emerging market short-term debt and flatten the inverted yield curve. If you invested in short-term debt towards the end of last year you would have made a profit."

Wu also predicted that the one-year capital gain would be maintained below 2% should the U.S. Federal Reserve keeps its interest rates at its current low level until 2014.

In a relat......................

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. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. 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

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner