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

Six and seven percent type of yield will be the exception going forward

Tuesday, February 09, 2016

Komfie Manalo, Opalesque Asia:

The volatile and uncertain market, particularly in an environment of zero inflation and risk of deflation, will make a six percent and seven percent yield to be the exception moving forward, said Ian Hamilton, Founder & Group Chief Executive Officer of IDS Fund Service during the latest Opalesque Zurich Roundtable.

Hamilton said that people still too often talk about levels of 6%, however, when the markets are confronted with a zero inflation scenario and fear of deflation, the focus of investors should realistically be capital preservation instead of trying to get six percent and seven percent gains.

He commented, "I think in the so-called institutionalization of hedge funds with pension funds coming in as investors, they are looking to have their capital preserved. They would love to get nice returns above that, but I think we’ve got to be realistic about expectations and benchmarks, et cetera, and 2% and 3% returns in the low-inflationary or zero-inflationary climate is fantastic. You just have to look at pre-inflation eras as well. And this is an obsession I find here in Europe, and I can't understand why you've got to have positive inflation all the time. All that does is destroy savings."

Rudolf Bohli, who is running a long/short European equity hedge fund with ......................

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