Mon, Sep 26, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

We will continue to see returns through fixed income substitution

Monday, January 06, 2014

Benedicte Gravrand, Opalesque Geneva:

According to Jay Raffaldini, global head product specialist, alternative and quantitative investments at UBS, we will continue to see returns through fixed income substitution within the hedge fund industry. Relative value strategies offer the best possibilities for that. He also expects the next wave of investors will bring a lot of money and expect lower returns.

The hedge fund industry was not a real industry in the 1990s, but just a handful of large managers and some private clients, he said during Terrapinn’s recent 2013 Hedge Funds World Zurich conference. As volatility at that time was high, it was dominated by CTAs. This is also when the concept of non-correlation was started.

2000-2002 was a terrible time for equities, but hedge funds shone then, he continued. After that, institutional investors came to hedge funds en masse for the uncorrelated returns. Volatility continued to fall after that, and strategies other that CTA and macro came to the fore. Correlations started in terms of risk exposure and investors de-risked equities. At that time, funds of hedge funds outperformed global equities and bonds.

In 2008, there was nowhere to hide, Raffaldini noted, but this was a temporary event as policies were implemented.

Since the......................

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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  5. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco