Thu, Oct 30, 2014
A A A
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. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some

  3. North America - FATCA leads 75% of U.S. expats to consider dropping citizenship[more]

    From International-adviser.com: Nearly three quarters of American expats are considering the renouncement of their citizenship following July’s introduction of the “absurd” Foreign Account Tax Compliance Act (FATCA). The findings, which were revealed in a survey by deVere, come alongside the news th

  4. Hedge funds fell 1.18% in September on Fed tightening and ECB loosening[more]

    Komfie Manalo, Opalesque Asia: Hedge funds fell 1.18% in September on Fed tightening and loosening of the European Central Bank’s policy on equity markets, according to the Barclay Hedge Fund Index co

  5. New app allows asset managers easy interaction with portfolios, securities, holdings, transaction details[more]

    Komfie Manalo, Opalesque Asia: Global financial services software company SS&C Technologies Holdings has launched Explorer, a powerful data visualization and analysis tool that turns critical investment data into meaningful information. Explore