Thu, Sep 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Benefits of actively managed portfolios to remain important as the bull market narrows, says Lyxor Research

Friday, May 04, 2012

Bailey McCann, Opalesque New York: During the first quarter, risky assets’ bounce off last October lows has been remarkable, according to new research from Lyxor Asset Management. The firm cites the European debt deal and a stronger US economy as catalysts for increasing investor confidence. Taken together, all of these factors speak to a broader need for actively managed portfolios the firm writes in the report.

Going forward, the firm believes three major drivers will likely push markets higher: plentiful liquidity, increased scarcity in risky assets and very attractive risk premiums that should drive a reversal in flows. Many hedge funds have been able to benefit from the improved market tone. A key corollary of the rally has been the low volatility, low correlation environment.

"This wide divergence across managers and strategies again illustrates that active management of hedge fund portfolios has the potential to add significant value" says Jean-Marc Stenger, Deputy Head of Alternative Investments at Lyxor Asset Management in the report.

In the future, passively managed portfolios may see a decline in performance, as passive portfolios are less reactive to market changes. For examples, report data shows that Portugal may be the next in line for a haircut, portfolios that are not well positioned to react to this news if it happens are likely to face some headwinds. In terms of strategies, the firm is slightly underweight CTAs while being slightly ov......................

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. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  2. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  3. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  4. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  5. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style