Fri, May 6, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund LJM Partners sees performance improve with volatility spikes

Tuesday, February 18, 2014

Bailey McCann, Opalesque New York:

The end of January and the first part of February saw a rise in volatility in the market. The January 24 spike was the first to kick off this trend which was the result of weakened emerging markets data. The polar vortex and associated winter storms which have hammered much of the US only served to add more support to the trend by causing drags on the US economy and GDP. Global headwinds like a weaker China are likely to keep volatility at more elevated levels throughout the year.

Since 2009, hedge funds have had a hard time accounting for lags in their performance given the strong run up in domestic and international equities. However, close watchers of the market will also know that the lack of volatility and opportunity on the short side of the portfolio is at least part of the reason for tepid hedge fund returns.

As that volatility came back, early hedge fund performance data for January shows that hedge funds have improved. Some of the biggest names including Pine River and Bridgewater saw rebounds.

In their monthly letter to investors, LJM Partners noted that January's positive performance numbers were the result of this newfound volatility in the market. The letter points to the January 24 spike as a moment of opportunity for the fund. "The VIX spiked over 43%, which is the 6th largest weekly percentage spike in the history of LJM’s trading record. While the strategies experienced modest immediate losses tied ......................

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. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n

  2. Opalesque Exclusive: Hedge fund talent, fees take a hit at the Milken Global Conference[more]

    Bailey McCann, Opalesque New York: It's been a rough year for hedge funds and now, even other managers are panning them. "Frankly, I’m blown away by the lack of talent," was Point 72 CEO Steven Cohen's assessment of trying to find candidates to hire in the investment business at a panel o

  3. Hedge funds fell in April as alternative UCITS surge in Europe[more]

    Komfie Manalo, Opalesque Asia: Hedge funds shed more in April with the Lyxor Hedge Fund Index down 0.9% during the month (-2.8% YTD), but there was some good news with alternative UCITS showing strong inflows in Europe. In its Weekly Briefing, Lyxo

  4. Global hedge funds recover in April on resurging energy commodities[more]

    Komfie Manalo, Opalesque Asia: Global hedge funds recovered in April with the HFRX Global Hedge Fund Index gaining +0.41% last month (-1.47% YTD), while the HFRX Market Directional Index gained +5.31% during the same

  5. AIG lost $349m in hedge fund portfolio in Q1[more]

    Komfie Manalo, Opalesque Asia: Large US insurance group AIG lost a net $183m for the first quarter 2016, year-on-year. The group blames the loss on the impact of market volatility on investments, as well as net realised capital losses and restructuring costs. Its hedge fund portfolio made a n