Wed, Apr 16, 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

Banner
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. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably