Thu, Feb 23, 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. People - Kuwait wealth fund head Al Saad said to step down after 14 years[more]

    From Bloomberg.com: Kuwait Investment Authority is set to name Farouk Bastaki as managing director, replacing Bader Al Saad who ran the world's fifth-largest sovereign wealth fund for 14 years, a person familiar with the matter said. The KIA, as the fund is known, is finalizing the appointment, said

  2. Manager Profile - Eddie Lampert: a painful entanglement with Sears[more]

    From Moneyweek.com: "In the long run we are all dead." Lex in the Financial Times reached for the famous quote from John Maynard Keynes in January when, after a long and unforgiving decline, the clock finally appeared to be running out on Sears, the iconic US department store group. Yet the group's

  3. Investing - Hedge funds quit Aberdeen shorts as shares begin to recover, Hedge funds' next big short: U.S. malls, O'Connor fund owns 9.5% of Protalix Biotherapeutics, U.S. hedge fund takes position in Macau hotel The 13[more]

    Hedge funds quit Aberdeen shorts as shares begin to recover From Investmentweek.co.uk: The last two hedge funds to short Aberdeen Asset Management have removed their positions, as the fund group's shares begin to show signs of recovery after a difficult few years. According to the Financ

  4. Latin America, high yields and Asia Pacific strategies dominate hedge fund returns in January[more]

    Komfie Manalo, Opalesque Asia: Latin America (+7.04%), high yield (5.63%), and Asia-Pacific (+5.06%) strategies dominated hedge fund performance in January, data provider Hennesee Fund Research said. The bottom three strategies for the mont

  5. Investing - Hedge funds loading up on this dividend stock, The biggest hedge funds have been piling into bank stocks[more]

    Hedge funds loading up on this dividend stock From Incomeinvestors.com: Hedge funds are backing up the truck on Cameco Corp stock. Billionaire Jim Simons owns 389,000 shares. Other Wall Street titans - including Ray Dalio, Ken Griffin, and Chuck Royce - have been quietly building positio