Wed, Sep 28, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Big Picture: How will currency devaluation and cracks in the Eurozone affect hedge funds

Friday, December 07, 2012

amb
An Opalesque column for global macro investors.

Benedicte Gravrand, Opalesque Geneva:

According to Brian Lawson, Chief Global Economist at Exclusive Analysis Ltd., a specialist intelligence company based in London, in a slow growth, difficult global environment, the ability to identify and trade on high impact, low probability events will be key to hedge fund outperformance. He explained why at Terrapinn’s Hedge Funds World conference in Zurich last month.

Policy failure

The Eurozone is a club where almost nobody followed the rules, Lawson started.

"Estonia is the only country which actually kept the rules within the Eurozone," he noted. "Nobody else managed to make the 3% deficit and 60% debt stock on a consistent basis every single year."

"The single message I’d like to give is that the conventional economic policy is not working in Europe. It did not in 2009 when the classic intervention recipe of spending money was thrown in the pot. Monetary policy also has not worked. Very large sums of money have been printed… in Europe, the LTRO was €1.1tln. And that has not done more than paving over the cracks of a financial system that is unable to finance itself."

So the heavy fiscal pump priming in 2009-10 failed to restart growth, but government spending possibly avoided deeper collapse......................

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. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  2. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  3. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  4. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  5. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style