Mon, Oct 24, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Latest report from IAM favours macro, trend followers and CTA hedge fund strategies

Thursday, November 10, 2011
The Chief Executive Officer of one of the oldest specialist independent fund of hedge funds, International Assest Management, has published a new report on what it favours for the fourth quarter of 2011.

Morten Spenner is focussing on Long/Short Equity, Credit, Macro, Event Driven, Fixed Income Relative Value and CTAs. “There will inevitably be twists and turns in the markets from the decisions and events that take place in Europe which are likely to lead to continuing volatility in markets and ongoing “risk on / risk off“ investor behaviour” he says. “Allocations should thus be balanced between retaining exposures to opportunistic managers who are ready to capture movements while ensuring portfolios are also well positioned to preserve capital.”

The firm finds particular merit in having an increased weighting to the Macro and Trend Followers/CTAs strategies. “Most Macro managers remain bearishly positioned and Trend Followers/CTAs are currently predominantly long of bonds and short of equities. Trend Followers/CTAs are liquid enough to switch quickly if better opportunities are presented and more clarity on the outlook becomes evident. Fixed Income Relative Value managers are expected to continue to produce returns in line with historical norms while exhibiting low levels of volatility.”

IAM is also looking for improvement from Credit managers following the recent widening in spreads. “However, in the medium-term, there may be better timing opportunities in the future to add to allocations in the Credit strategy. In the Long/Short Equity area, there will need to be more focus within the strategy on where managers can add value from better opportunity sets. In an environment of reduced growth in the Western world, there is likely to be less potential upside from the equity markets of these countries in the short-term.”

In conclusion, IAM feels that the current market environment probably favours the return outlook of debt-related managers: "But we retain a positive return outlook on the Long/Short Equity and Event Driven strategies for the potential to produce higher returns in more favourable conditions over the longer-term. However, manager selection is likely to be a crucial driver of returns in the current market environment and therefore these strategy outlooks need to be balanced with the focus that IAM has on approved managers within strategies, on themes and on the managers that we have most conviction in."

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. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. Other Voices: Follow the advice of investment consultants - I think not[more]

    Mark Rzepczynski, Founding Partner, Chief Investment Officer AMPHI Research and Trading, writes on Harvest Exchange: Investment consultants are a force to the reckoned with in the pension world. They advise and drive many pension decisions around the globe. Consultants literally control trillion