Tue, May 24, 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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  3. Mitch Petrick leaves Carlyle as his hedge fund unit suffers losses while assets expand[more]

    Komfie Manalo, Opalesque Asia: Mitch Petrick will be leaving Carlyle Group as head of its hedge funds unit overseeing about $34bn as of March 31, after several funds under his management suffered losses while assets expanded, various media reported. Petrick joined Carlyle in 2010 and was a former

  4. Institutions - Kentucky pension leans into hedge funds amid governance turmoil, Korea's NPS names finalists for initial $1 billion hedge fund-of-funds allocation[more]

    Kentucky pension leans into hedge funds amid governance turmoil From AI-CIO.com: The Kentucky Retirement Systems moved to increase its hedge fund allocation as controversy reigned over fund leadership. Following a string of high-profile hedge fund exits, the Kentucky Retirement Systems (

  5. Fund Profile - The hedge fund that couldn't stay open long enough for a big payday[more]

    From Bloomberg.com: Toby Dodson waited six months for his bet against a fragile Portuguese bank to pay off. But before the reckoning, word came down from his hedge fund bosses at Achievement Asset Management in Chicago: get ready to clear out your desk and unwind your trades, we’re shutting down. Th