Tue, Oct 6, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Positive news for hedge funds says Lyxor research

Tuesday, January 22, 2013

Beverly Chandler, Opalesque London: Lyxor Asset Management’s latest research reveals that they have two key calls for 2013:

  • Risky assets outperform safe heavens
  • Hedge funds offer inviting risk-return profiles
The roots of their optimism can be traced to the realization of three scenarios, they write. "First, we expect a pickup of world activity, starting 1Q13, led by US and Asia. Second, we anticipate calming of political risks, following the recent non - US fiscal cliff - event, and the ongoing success of OMT measures in the euro-zone. Lastly, we believe that Central Banks should maintain ultra-loose monetary policies, as employment troubles take time to heal.

The firm argues that it’s time to prefer equities. "Equities remain historically cheap relative to safe haven bonds. Last year already saw the onset of normalization in equity risk premiums. We believe that risk premiums will ease again in 2013, as improving economic conditions prompt investors to become less and less reluctant to buy "risky" equities rather than "safe" government bonds".

In particular, Lyxor believes that European equities are well positioned. "Indeed, debt fears in peripheral countries sent domestic valuation metrics on ugly levels compared to their counterparts. European equities have room to significantly outperform U.S. equities in 2013. Moreover, the recent relaxation of Basel III rules should be a positive trigger for Eu......................

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. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Reuters.com: Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  2. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  3. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  4. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  5. Vilas’ equity long bias hedge fund generates market-beating results[more]

    Komfie Manalo, Opalesque Asia: The Vilas Fund, an equity long bias fund managed by Chicago, Illinois-based Vilas Capital Management, posted five-year annualized returns, net of fees, of 23.47% vs. 15.87% for the S&P 500 Index, including divid