Sat, Nov 28, 2015
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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November