Mon, Oct 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Structured assets outperform in risk on/risk off environment

Monday, August 13, 2012

amb
Ernesto Prado
Bailey McCann, Opalesque New York:

Ernesto Prado is Chief Investment Officer and Partner at Ayaltis AG, a fund of hedge funds. Prior to founding Ayaltis, Ernesto was CIO of Peak Partner SA. He is a veteran of the finance industry, having also worked and Solomon Brothers. More recently, his work at Ayaltis was rewarded with two InvestHedge Awards (2007) for best-risk adjusted returns in the fixed income category during the subprime crisis. He was recently interviewed by Sona Blessing for Opalesque Radio.

According to Prado, he was able to achieve these returns by starting early on with a very clear understanding of the Macro environment. He explains that during a time marked by uncertainty such as this, his team has been able to build on that early understanding to create portfolios that are able to withstand a risk on/risk off environment and still generate returns.

"In this environment you could select from a sound strategy and you might be fundamentally correct on the valuation, but because Greece is about to default it completely fakes the fundamental analysis," he says, noting instead that investors and managers alike also need to factor in price distortions that are currently widespread throughout markets due to the debt crisis in both the US and Europe and subsequent central bank interventions. "All of the assets are sitting on a pedestal of sovereign risk."

......................

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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad