Sat, Sep 20, 2014
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali