Tue, Mar 3, 2015
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. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  2. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  3. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie