Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
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

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1