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

Guggenheim takes a closer look at event driven managers

Thursday, October 17, 2013

amb
Charles Stucke
Bailey McCann, Opalesque New York:

Charles Stucke is the Chief Investment Officer of Guggenheim Investment Advisors. He joined the firm in 2006, after building a career as an investment banker. Within his role at Guggenheim he oversees a suite of fund of funds and a hedge fund platform. In a recent Opalesque TV interview, he noted that the firm is shifting its focus, to look at more event driven managers for opportunities over the next two to five years.

"Mid to late 2012, earnings began to mean revert, ROEs began to fall, and yet at the same time, credit prices, or the cost of financing remains very low. So we believe that corporate CFOs would be very tempted to use leverage and do other types of corporate event transactions to maintain or continue to grow earnings and ROEs in an environment that’s becoming increasingly competitive for them. These events include things like restructurings, shared buybacks, recapitalizations and mergers and acquisitions," he explains.

Going forward, investors that are looking to capture the same rate of return from their allocations to equities or fixed income will face some challenges. For Stucke, this means refining focus – "where do you go? You have to find more specific and more active uses of risk to be able to bridge that return goal. So we are looking in places like event strategies, we are looking in long-short equity, we a......................

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. 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

  4. 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

  5. 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