Sat, Apr 19, 2014
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

Banner
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. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  3. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  4. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  5. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo