Fri, Sep 30, 2016
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. Studies - Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements, Cambridge: Look to private investments for best access to LatAm growth[more]

    Hedge funds’ study reveals vast disparity in types of investors securing side letter arrangements A new study of the hedge fund space by industry law firm Seward & Kissel LLP reveals a wealth of information regarding established hedge fund managers’ use of side letters—special agreements

  2. Activist News - Caesars 'optimistic' on deal with hedge fund creditors[more]

    From Reuters.com: Caesars Entertainment Corp said on Monday it remains "optimistic" of reaching a $5 billion deal with the bulk of its creditors to push its main operating unit out of bankruptcy, but one hedge fund bondholder said it will pursue litigation. Caesars offered a sweetened $5 billion set

  3. Hedge funds recover from losses as central banks give markets a respite[more]

    Komfie Manalo, Opalesque Asia: The Lyxor Hedge Fund index was up 0.4% from the week ending September 20 (-2.4% YTD), supported by the willingness of central banks to remain accommodative, Lyxor Asset Management said in its weekly briefing. It ad

  4. Perry Capital closing flagship fund after almost three decades[more]

    From Blooomberg.com: Richard Perry, one of the biggest names in hedge funds, is calling it quits after 28 years. Perry, 61, is winding down his New York-based flagship fund as the industry confronts one of the most tumultuous periods in its history. In a letter to investors Monday, he said his style

  5. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as