Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds lost some ground a week after Donald Trump’s win as bond sell-off accelerates

Tuesday, November 22, 2016

Komfie Manalo, Opalesque Asia:

Hedge funds lost some ground in the week that followed Donald Trump’s election as the Lyxor Hedge Fund Index was down 0.3% as of end Nov. 15 (-2.3% YTD) while global bonds experienced an aggressive sell-off, Lyxor Asset Management said.

Fixed income suffered the most among all strategies, but this was uniquely related to a few directional managers while pure relative value players were very resilient. The L/S credit segment resisted well (-0.1%).

Philippe Ferreira, senior strategist at Lyxor AM, commented, "CTAs and L/S Equity continued their downward trajectory and global macro was flat. Event driven crept higher (0.3%), propped-up by gains in merger arbitrage (0.5%)."

Bond sell-off accelerates

Ferreira explained that the recent rise in bond yields has led to numerous questions on the outlook for fixed income arbitrage and L/S credit strategies. In the wake of the U.S. election, the bond sell-off has accelerated as markets started to price in a more expansionary fiscal policy and higher inflation expectations.

Meanwhile, the Fed is on course to hike rates in December and could turn more hawkish in 2017. Actually, the aggressive stance of Donald Trump towards the Fed’s accommodative policy may translate into hawkish nominees for the two vacant seats on the Board of Governors.

He stated, "Downside risks on fixed income generally reverberate across the credit spect......................

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