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Beverly Chandler, Opalesque London: The latest Early View from FRM, Man Group’s $16.7bn fund of hedge funds and managed accounts business includes the following key highlights:

• Asset price movements during May were surprisingly volatile. The biggest stories were the swings in the price of Japanese equities and a significant retracement in global government bond yields
• In the first half of the month the trend of Yen depreciation and equity market gains seen for the past six months continued, however the second half of May saw these gains entirely wiped out
• Volatility markets in Asia were very active. Elsewhere, equities markets in early May continued their recent rise, even in the absence of any strong indication of continuing growth or fundamental data releases. This price action shows that investors are confident that policy makers are committed to further fiscal stimulus
• In the US, the on-going debate around the likelihood of the tapering of quantitative easing, and the risks associated with this scenario, continues to be of greater importance than individual macro-economic events
• In May, cyclical sectors outperformed and defensive stocks dropped back. Whether these moves are just profit-taking or the start of a more sustained rotation into riskier securities remains to be seen
• Emerging Market asset classes continued to underperform i......................

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