Mon, Feb 27, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

LJM hedge fund says current volatility does not reflect potential threats

Thursday, May 15, 2014

Komfie Manalo, Opalesque Asia:

The $312m LJM Partners said there are strong support and resistance factors in the market, but the current volatility levels do not accurately reflect the potential threats.

In her monthly report to investors, Kelly McKean, who is in charge of managing the investor pipeline at LJM, said the investment management team emphasizes an opportunistic approach harnessing returns when the risk/reward profile is favorable, and exercising caution when risks outweigh potential rewards.

"Markets have been range‐bound but showed some sharp reversals. The charts of the most important equity indices showed sort of a V-shaped movement," she said and added, "On the way down in the first two weeks of the month Volatility attempted another short rally to 18% and returned again to the 'new normal’ 13-15% zone where it has resided most of the time since July 2012. LJM’s April returns were diluted by the fact that the volatility levels, the geo-political environment, and the domestic economic data did not support pursuing the same level of returns within the appropriate risk parameters.

At suppressed volatility levels, LJM’s risk constraints dictate lower short-term return targets. However, lower capital deployment creates more efficient use of capital when opportunistic market scenarios emerge, McKean said.

All LJM strategies posted modest gains in April. Based on the estimated YTD......................

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. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  2. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  3. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl

  4. Europe - 1 trillion euro non-performing loans are clogging EU lending channels[more]

    From Centralbanking.com: As much as 1 trillion euro of non-performing loans (NPLs) are still clogging the lending channel in the European Union. An EU asset management company (AMC) could address market failures in the secondary market for NPLs as part of a suite of measures designed to tackle the b

  5. Investing - Hedge funds' novel approach: investing for longer at lower returns, U.S. hedge fund Delta Partners lifts stake in Bellamy's, Hedge funds stockpile cobalt, electric carmakers on battery alert, Facebook is racking up the likes among the world's biggest hedge funds, Einhorn affirms gold on Trump uncertainty[more]

    Hedge funds' novel approach: investing for longer at lower returns From FNLondon.com: Hedge funds are known for making short-term bets, dipping quickly in and out of markets to take advantage of swings in prices. But, under pressure to innovate, some big-name managers are looking at ways