Mon, Jan 16, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Lyxor research finds reduced tail risk and a bumpy landing lie ahead for financial markets

Thursday, October 25, 2012

Beverly Chandler, Opalesque London: A research flash report from Lyxor Cross Asset Research Study for the fourth quarter of 2012, entitled 'Central Banks Buy More Time’ finds that hedge fund managers will benefit from stock selection.

The firm writes: "We believe the ECB’s "whatever it takes" promise substantially reduced tail risks. Risk premiums that have remained abnormally high since the outset of the financial crisis, should diminish over time." However, the firm warns that the road to normalization will probably be long and bumpy. "While policy uncertainties persist in the Eurozone, they are mounting in the U.S. which is facing the so-called "fiscal cliff". But the aggressive monetary policies across the world mean that the trough in the economic cycle could occur earlier than we previously had in mind".

Strategically, Lyxor continues to favor U.S. assets but have tactically raised their stance on the more volatile Eurozone equities to the same slight overweight stance. "Fundamentally, austerity continues to take its toll on European growth, thus compromising fiscal targets. Within Emerging markets, we believe EM equities should soon benefit from additional policy support and later from improved economic momentum" the firm writes.

For Lyxor, the most striking feature of financial markets since the crisis is probably investors’ inordinate antipathy towards equity. "Current equity risk premiums are far above......................

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. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  4. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock

  5. Eurekahedge Hedge Fund Index up 1.01% in December (+4.48% YTD)[more]

    Hedge funds gained 1.01% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as t