Mon, Mar 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Reduced policy intervention in 2013 will lead to opportunities for global macro and specialist trading funds says FRM

Wednesday, February 06, 2013

Beverly Chandler, Opalesque London: Man Group’s fund of hedge funds business FRM, has published its early view of January, including a review of markets and hedge funds.

The firm finds that, while there were distinct signs of a classic 'risk-on’ environment in January in which one might expect more asset class dispersion, there was some evidence of the rally being unusually technical in nature.

FRM writes: "There are a range of macroeconomic risks on the horizon. In the US, fiscal cliff concerns will likely resume as the deadline on the automatic sequestrations are reached; without any mitigating action, commentators expect that the mechanised fiscal cuts would place a drag on growth of around 1%. While fiscal consolidation continues to be the standard policy response in Europe, political obstacles could threaten progression from here."

The firm also comments that the large-scale money-printing exercise undertaken by the major central banks since the 2008 crisis has resulted in large swathes of liquidity in financial markets: as assets have moved across borders (in search of yield) currencies have been forced to re-price. "We suspect that all the money borne from quantitative easing will find new homes at new prices as current regimes of currency pricing are recalibrated."

In terms of hedge funds, FRM contends that if policy intervention becomes more scarce than in 2012 (though not entirely absent), &#......................

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 - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  2. Adamas Asset Management and Ping An Insurance to co-manage $500m debt fund[more]

    Komfie Manalo, Opalesque Asia: Hong Kong-based Adamas Asset Management and Ping An Insurance Group, one of China’s largest financial institutions, have finalized a memorandum of und

  3. Opalesque Exclusive: dbSelect’s top ten FX strategies average almost 10% in January[more]

    Benedicte Gravrand, Opalesque Geneva: In one of Deutsche Asset & Wealth Management (AWM)’s hedge fund platforms, called dbSelect, a number of FX Strategies did very well in January. dbSelect is a managed investment platform for unf

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie