Wed, Jun 29, 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. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  2. Investing - Soros, Druckenmiller among hedgies profiting in market plunge, Hedge funds were most bullish on bonds since 2004 before Brexit, Surprise Brexit vote unleashes scramble for dollars, High-yield hit on Brexit but no panic selling, Scientist turned hedge fund founder lured to pound, euro, Hedge fund avoids commodities, posts big gains[more]

    Soros, Druckenmiller among hedgies profiting in market plunge From HITC.com: Bullish positions in gold and volatility and well-timed short bets on China and emerging markets, among other areas, were some of the trades that benefited hedge funds on Friday as markets digested Britons' s

  3. Manager Profile - A 26-year old hedge fund manager called Brexit — here's what he thinks about the historic vote[more]

    From Businessinsider.com: Taylor Mann is not your typical fund manager. The twenty-six year old Texas A&M graduate manages Pine Capital in Larue, Texas (population 160), where he resides with his three-year old daughter. Also atypical compared with many of the largest funds out there, Mann makes

  4. Visium hedge fund manager Sanjay Valvani found dead[more]

    Benedicte Gravrand, Opalesque London: A hedge fund manager connected with an insider trading case has apparently committed suicide. Sanjay Valvani, 44, a hedge fund manager at New York-based Visium Asset Management, was found dead in an apparent suicide on 21 June in his Brooklyn residence,

  5. People - Mariner Investment’s co-CIO Williams to leave $5.5bn firm, IOOF hires new alternatives portfolio manager[more]

    Mariner Investment’s co-CIO Williams to leave $5.5bn firm From Bloomberg.com: Basil Williams, co-chief investment officer of Mariner Investment Group, is leaving the $5.5 billion hedge-fund firm after negotiations to renew his contract failed. Williams will stay in his role until t