Sun, Mar 26, 2017
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. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  2. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  3. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  4. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  5. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He