Fri, May 22, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: Ovation Partners targets opportunities where few "natural lenders" participate[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Changes in financial regulations post-2008 (Dodd-Frank and Basel III) are forcing banks to significantly alter their core lending businesses. And as mid-sized

  5. Opalesque Exclusive: A lot of hedge fund investors are beginning to recognise the need for ongoing cyber threats monitoring[more]

    Benedicte Gravrand, Opalesque Geneva: Corporate Resolutions Inc. recently formed a strategic partnership with iThreat Cyber Group. The two companies have worked together for years, assisting clients when challenging

 

banner