Mon, Apr 21, 2014
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

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. …And Finally – Flight attendant has passengers rolling in aisle[more]

    From Orange.co.uk: A video of a US flight attendant turning her safety talk into a comedy routine is proving a huge hit online. More than five million people have watched the clip of Marty Cobb which has her passengers rolling with laughter on a Southwest Airlines flight to Salt Lake City.

  2. 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

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably

  5. University of Michigan allocates $242m to six managers[more]

    From PIonline.com: University of Michigan, Ann Arbor, invested or committed a total of $242 million to one traditional equity manager and five alternative investment funds from its $9 billion endowment. University regents approved the hire of Mittleman Investment Management to run $35 million in act