Sat, Sep 20, 2014
A A A
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

amb
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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali