Sat, May 28, 2016
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. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  4. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year

  5. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit