Sun, Aug 30, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Understanding the Great Rotation, Part 3

Friday, November 15, 2013

amb
Alexander Ineichen
Benedicte Gravrand, Opalesque Geneva:

This series of articles explores the concept of the Great Rotation, which was anticipated to be one of 2013’s themes, its reality and how it is viewed. Here we see that it is not just about investors rotating out of bonds and into equities.

Part 1 was in Wednesday’s AMB, Part 2 in Thursday’s. Part 4 will be published on Monday (Nov. 18th).

Two opposing rotations playing out simultaneously

Morgan Stanley’s latest blue paper, out last month and called "Great Rotation? Probably not," says rotational flows from bonds to equities will be more subdued than many expect.

"Our bottom-up analysis of $89 trillion of global AuM [about 60% is institutional money and 40% retail] suggests there are major structural headwinds to the 'Great Rotation’ story," the paper says, which adds that the concept of a 'Great Rotation’ simplifies nuanced demand dynamics at play.

Indeed, the authors think two opposing rotations may be playing out simultaneously: institutional investors are de-risking while retail investors are re-risking.

Since January this year, retail and HNW investors have reduced cash and increased r......................

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 - Hedge funds suddenly find real money is back in Argentina's debt, Elon Musk buys more SolarCity stock following hedge fund manager short, BlackRock plans to get into rental-home financing[more]

    Hedge funds suddenly find real money is back in Argentina's debt From Bloomberg.com: The real money is back in Argentina. Before the country’s default in July 2014 (its second in 13 years), most long-term investors abandoned its bond market. As they rushed out, Argentina became a favorit

  2. Activist News - Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping, Meet Europe's best activist investor[more]

    Carl Icahn has snapped up a huge stake in Freeport-McMoRan, and the stock is ripping From Businessinsider.com: Carl Icahn has picked his next target: Freeport-McMoRan. Icahn and a group of other investors have snapped up an 8.46% stake in mining company Freeport-McMoRan, according to a j

  3. North America - Hedge fund manager Ray Dalio’s challenge to the Fed[more]

    From Newyorker.com: For some reason, Janet Yellen, the chair of the Federal Reserve, decided to skip this year’s annual Fed conference in Jackson Hole, where monetary policymakers from the United States and abroad get together with some prominent academics to discuss the big issues of the moment. Th

  4. Opalesque Exclusive: Credit-focused hedge fund Numen Capital expects more volatility in Europe in coming months[more]

    Benedicte Gravrand, Opalesque Geneva: A London-based hedge fund, which has just hired two emerging managers, is cautious on Europe. Vassilis Paschopoulos and former Lehman’s colleague Nikos Kargadouris, launched a London-based credit-focused hedge fund called

  5. Performance - Hedge funds bruised by stocks’ meltdown, Capstone’s volatility hedge fund is having a monster month thanks to market mayhem[more]

    Hedge funds bruised by stocks’ meltdown From WSJ.com: Hedge-fund managers like to promise their investors protection from market swings. In the recent stock swoon, many were caught off guard. Billionaire managers such as Leon Cooperman, Raymond Dalio and Daniel Loeb are deeply in the red

 

banner