Mon, May 28, 2018
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. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven