Wed, Nov 25, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Risk easing continued in the fourth quarter, trend likely to continue - Axioma

Tuesday, February 05, 2013

Melissa Brown
Bailey McCann, Opalesque New York: Risk continued to decline in the fourth quarter of last year, a trend that is likely to continue according to the most recent quarterly risk report issued by Axioma. Possibly explaining the rush into global equities by institutional investors to begin 2013, Axioma found that following a precipitous drop in risk and volatility in 3Q12, risk continued to decline in 4Q12. Heading into 2013, predicted risk has hit a near 5-year low.

Notably, the data shows a continued decrease in risk for European benchmarks, with medium-horizon risk for the Euro Crisis countries (Greece, Spain, Italy, Portugal and Ireland) falling nine percentage points. Medium-horizon risk for the Russell 1000 and Russell 2000 also dropped in the fourth quarter. Forecast risk for large-cap US stocks was on par with that of the FTSE Emerging index, in sharp contrast with the fourth quarter of 2011 when the Russell 1000 was well below the Emerging index. Short- and medium-horizon forecasts also fell substantially for the FTSE Asia-Pacific ex-Japan.

"We are cautiously optimistic about the current environment," said Melissa Brown, Senior Director, Applied Research and co-author of the Quarterly Risk Review. "While risk is much closer to all-time lows than historical peaks, we can reference instances where risk has held steady at current levels for periods lasting years.&......................

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. Investing - BlackRock targets ETF investors with flexible currency hedging, Nelson Peltz bets on General Electric Company and Mondelez International, Apple plummets to 4th place among hedge holdings, from No. 1, Top Q3 equity purchases and sales of top 50 hedge funds[more]

    BlackRock targets ETF investors with flexible currency hedging From BlackRock Inc., the world’s largest asset manager, is changing course on exchange-traded funds that protect against currency volatility. After stressing the easy switch between hedged and unhedged ET

  2. Chicago-based Achievement A. M. is shutting down hedge fund following losses[more]

    Komfie Manalo, Opalesque Asia for New Managers: Achievement Asset Management, a Chicago-based hedge fund firm, has announced it is closing down its hedge fund operation following losses on energy market bets this ye

  3. Lyxor Hedge Fund Index up 0.1% (+0.4% YTD) as global macro and CTAs outperform[more]

    Komfie Manalo, Opalesque Asia for New Managers: Global macro and CTAs outperformed the hedge fund space and delivered positive returns last week amidst difficult market conditions, with the Lyxor Hedge Fund Index up

  4. BlackRock is shutting down its Global Ascent macro fund[more]

    Komfie Manalo, Opalesque Asia: BlackRock, the world’s largest asset manager, has announced plans to shut down a macro fund, Global Ascent Fund, because of "headwinds facing the industry". The hedge fund, which makes bets on stock, bond and currency markets, will return money to investors. Ac

  5. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the