Mon, Jan 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

ConvergeEx: Investors underestimate volatility potential

Friday, August 01, 2014

Bailey McCann, Opalesque New York:

Investment professionals say that investors are too complacent about the potential rise in volatility that could hit financial markets in the coming months according to new research from ConvergeEx Group. 71% of survey respondents expect volatility to climb from historically low levels by the end of September 2014, and even more (81%) expect a rise by the end of December 2014.

A majority of those surveyed identified U.S. Federal Reserve policy as the most likely driver of a near-term spike in volatility. Events in the Middle East came in second at 16% and Ukraine came in third at 14%. In line with those observations, respondents predict the VIX will be at 13.3 by the end of September 2014, and at 14.5 by the end of December 2014.

"We also have a clear picture of how record low volatility has hurt the sell side," says Tony Saliba, ConvergeEx Group executive managing director. "Two thirds of banks and brokers say the current environment has been bad or very bad for business."

An uptick in market volatility could actually be a blessing in disguise for some investors - particularly those with hedge fund allocations that have lagged behind in the low volatility environment. Still, investors are often unwilling to ride out volatility to reap those returns. Others who are not defensively positioned, may find volatility tough to take if they've been over reliant on the long only rally in recent quarters.

Survey respondent......................

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 - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised