Sun, Jun 26, 2016
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 Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider