Sat, May 26, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Emerging hedge fund managers can offer diversification in 'new normal’ challenging climate

Friday, November 30, 2012

by Beverly Chandler, Opalesque London:

Jeroen Tielman, chief executive officer and founder of hedge fund seeding platform IMQubator has named the current challenging market scenario as 'new normal’. Bonds he dismisses as offering return free risk rather than risk free return, and he finds that the uncertainties in the markets make investors react with more of a binary risk on / risk off behaviour.

"The consequence is that investors are seeking safe havens including cash" Tielman says in an interview with Opalesque, "So we are saying what does this mean for hedge funds and emerging managers in the hedge fund space?"

Tielman believes that in addition to providing investors with diversification, within the 'new normal’, IMQubator likes some strategies more than others. "We like strategies that are negatively correlated with equity exposure. For example strategies that exploit behaviour biases in equity bear markets; we like strategies that benefit from market activity in different forms of marketmaking techniques. We like volatility strategies, especially those that benefit from volatility spikes that occur when there are major equity drawdowns. In systematic, we like the faster reacting approaches like with some short CTAs do or range break out strategies. In discretionary we like strategies capable of decision making ahead of events, like global macro or discretionary commodity or forex traders."

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

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. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven