Tue, Oct 25, 2016
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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From Thisismoney.co.uk: The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From CNBC.com: Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Marketwatch.com: Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Forbes.com: Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa