Thu, Nov 27, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The Big Picture: Francesco Filia: Japan is a catalyst for other economies

Monday, June 17, 2013

amb
Francesco Filia
An Opalesque column for global macro investors.

Benedicte Gravrand, Opalesque Geneva:

According to Fasanara Capital’s investment outlook, published on 31st May, there is more high volatility ahead.

The fund’s Value book remains flat as markets are toppy (i.e. markets are reaching highs that are unstable, and therefore a decline can be expected).

"We will change that stance only once the disconnect between the real world and financial markets tighten from here, as a consequence of market correcting or fundamentals improving," the report states. Furthermore, current credit and equity bubble levels are reminiscent of 2007 and other events.

On the other hand, Fasanara sees most of the opportunities in their Hedging book, thanks to the market mispricing the potential for realized volatility and for toppy markets to be 'gapping markets’ (e.g. gold’s heart attack, Nikkei flash crash…) The book is long volatility.

Two premises that Fasanara is relying upon in the outlook is (1) the expectation of a bubble chain and a deleverage chain; and (2) Japan and China being catalysts as their dynamics may have important repercussions for global markets in the months ahead.

Bubbles

Francesco Filia told Opalesque last week he is expecting a steep correction, as there is a huge disconnect between fundamentals and the levels at which the equity markets are trading. He believe......................

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 - George Soros puts $500m of his money on Bill Gross, Soros, Paulson backed Hispania Activos mulls Realia takeover, Ex-Credit Suisse trader’s hedge fund sees yen shorts as crowded, Hedge hunters double default-swaps as views split, Large hedge fund positions come under pressure, Vikram Pandit's fund picks 50% stake in JM Financial's realty lending arm for $87m[more]

    George Soros puts $500m of his money on Bill Gross From WSJ.com: Before Bill Gross was fully settled in at his new firm, Janus Capital Group Inc., he received an unlikely visit from the chief investment officer of famed investor George Soros ’s firm, according to a person familiar with t

  2. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Opalesque Exclusive: Risk management emerges as a competitive focus area for hedge funds[more]

    Bailey McCann, Opalesque New York: Risk management has always been a core component of any trading strategy, as well as a critical part of business management. However, as macreconomic weakness persists, and alpha becomes increasingly hard to generate, risk management as emerged as a more promin

  5. Gross: Inflation is required to pay for prior inflation[more]

    Benedicte Gravrand, Opalesque Geneva: As inflation rises, every dollar will buy a smaller percentage of a good. While deflation will mean a decrease in the general price level of goods and services. These two economic conditions are both in the waiting room. The consensus would like the former to