Mon, Jul 24, 2017
A A A
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. Already above average, Singapore high-networth investors add hedge funds and alternative investments[more]

    Komfie Manalo, Opalesque Asia: An above-average proportion of Singaporean HNW wealth is allocated to alternative investments - the majority of which is held in hedge funds, according to the latest research by ReportLinker. In its report entitled, Wealth in Singapore: HNW Investors 2017

  2. Launches - Crypto boom: 15 new hedge funds want in on 84,000% returns, Crypto madness is striking VCs as Union Square analyst leaves to start new fund[more]

    Crypto boom: 15 new hedge funds want in on 84,000% returns From Forbes.com: With 43 projects raising $1.2 billion in initial coin offerings since May 1, according to Nick Tomaino's The Control, and with stratospheric returns for so many ICOs -- 82,000% for Ethereum, 56,000% for IOTA, 44,

  3. FinTech - The machines are coming... Elon Musk's grim warning, Tezos' $232 million ICO may just be the beginning, A gentle introduction to Initial Coin Offerings (ICOs), Billion dollar tokens, ICOS & crazy market swings WTF is going on!?, How AI is changing the way we invest, How the tech revolution is bringing flip-flops and beanbags to Wall Street, A 'machine-learning' approach to venture capital[more]

    The machines are coming... Elon Musk's grim warning From Tenplay.com.au: Tesla chief Elon Musk has called on US Governors to take 'decisive' action to curtail "the greatest risk we face as a civilization": Artificial Intelligence, or AI. Speaking at a meeting of the National Governor Ass

  4. News Briefs – Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9%, Rwanda: Global hedge fund to increase investments[more]

    Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9% Sears Holdings has landed a fresh line of credit, valued at $200 million, from its CEO Eddie Lampert's hedge fund, the retailer said Monday. Sears' stock climbed about 9 percent higher Monda

  5. Despite current limits, robo-advisors will be preferred investment solution for retail, gain importance for affluent and high net worth[more]

    Matthias Knab, Opalesque: Flynt, a Swiss FinTech focusing on proprietary technology platform for private and institutional clients, has published a brief paper on "Investing in the world of robo-advice and passive instruments". As investors will become more reluctant to pay for investment advi