Sat, Jul 26, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund managers see short-term volatility, long-term opportunities in European credit

Friday, October 28, 2011
Opalesque Industry Update - Credit Suisse’s Asset Management division today announced the release of the fourth quarter 2011 edition of its “Asset Management Alternatives Quarterly.” This thought-leadership series, which includes a white paper and video, offers insights from Credit Suisse Asset Management’s CIO Office and leading alternatives portfolio managers on global economic trends and capital markets.

In this edition, Credit Suisse Asset Management’s CIO Office discusses the drivers of recent volatility in world capital markets, including poor macroeconomic data from developed economies and continued uncertainty over the Eurozone sovereign debt crisis.

Emerging markets were also affected by developed markets’ slowing growth in the third quarter, as investors shied away from risk, generating further volatility. According to the white paper, however, emerging market economies remain fundamentally healthy, as evidenced by still robust growth rates and low debt ratios. In addition, receding inflation worries should enable emerging economies – such as China – to shift its focus from fighting inflation to bolstering economic growth.

Other key themes in the Q4 2011 issue include:

  • Event driven and relative value hedge fund managers believe that while the short-term environment remains volatile, in the long run, opportunities in credit may be developing in Europe. Future potential recapitalization of the financial sector and further deleveraging of the corporate debt sector may point to multi-year, credit-related investment opportunities across many sectors. 
  • The Credit Investment Group remains cautious with regard to the broader asset class in the near term. As such, they are defensive from a portfolio management perspective, emphasizing senior- secured bonds and overweighting higher-rated bonds with potentially superior risk-return profiles. 
  • Current market volatility and increasing corporate cash balance sheets may present an opportunity for private equity managers, particularly for those focused on special situation and Euro distress- for-control strategies. 
  • The Commodities Group believes that despite the volatility in capital and commodity markets, long- term fundamentals (i.e., tightening supply) for select commodities, such as agriculture, industrial metals and energy, remain positive. Press release: Source
- FG

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag