Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Australia’s Zenith urges investors to understand net and gross exposure in long/short equity investments

Tuesday, June 25, 2013

Beverly Chandler, Opalesque London: Zenith Investment Partners has released its 2013 Australian Long/Short Equities Sector Review. Christopher Huang, Investment Analyst at Zenith says "It is commonly held that long/short funds are as, or less risky than the market. While we certainly believe that quality long/short funds improve an investor’s risk/return profile relative to investing in the index, we do caution investors to understand and be comfortable with the notion of both net and gross exposure. We caution that market risk (net exposure) is not the only risk that investors should be cognisant of. Gross exposure (i.e. exposure to the manager’s stock picking skills) is also of paramount importance."

The Zenith’s 2013 Australian Long/Short Sector Report discussed the notion of whether long/short funds are more or less risky than the market. "Active extension and variable beta funds have had solid returns in generally favourable equity market conditions over the past 12 months. Many of the funds we have reviewed in this sector have kept pace with the Australian equity market in the year to March 2013, with active extension funds benefiting more from the equity market rally than variable beta funds" the report said.

"Many of the active extension funds we have reviewed have maintained close to 100% net market exposures which have allowed them to achieve returns close to that of the Australian equity market. In......................

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. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  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. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. 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

  5. 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