Fri, Aug 26, 2016
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. Opalesque Exclusive: Algorithms platform aims to target typical challenges found in quantitative hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Last month, Quantopian received investments from Point72 Ventures, the new venture capital arm of Steven Cohen’s Point72 Asset Management.

  2. LatAm hedge funds surge in 1H to +24.4%, emerging markets assets rise[more]

    Komfie Manalo, Opalesque Asia: Hedge funds investing in Latin America posted strong gains through mid-2016, reversing declines in four of the past five years, including the last three years, to lead all areas of hedge fund performance through the first half of 2016, according to the latest HFR Em

  3. Asia - LGT Capital Partners: Alternatives set for continued rise in Asia[more]

    From Asianinvestor.net: More flows are likely into insurance-linked strategies, private equity and trend-following strategies/CTAs, given the benefits of such investments, argues LGT Capital Partners. Despite the numerous quantitative easing programs and bailouts of recent years, the quest for

  4. Opalesque Roundtable: Low and high fee investments often better than mid fee hedge funds[more]

    Komfie Manalo, Opalesque Asia: Hedge funds that charge the low and high fees stuff often provide better returns than "those sort of mid-fee investments", said Keith Haydon, chief investment officer of Man FRM. (Alternative) investment managers who charge high fees would often provide the most int

  5. Hedge fund investors pull $5.7 billion in July[more]

    From Bloomberg.com: Hedge funds suffered a third consecutive month of outflows in July as investors withdrew $5.7 billion, according to industry tracker Eurekahedge. Redemptions totaled $20.7 billion in the three months through July, with money managers betting on equities suffering $18.4 bill