Tue, Sep 23, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

SEB cautious towards equity long/short in current and future quarters

Friday, December 09, 2011
Opalesque Industry Update - SEB, the Northern European financial group, comments on Hedge Funds in an article called ““Operation Twist” benefiting Relative Value”. Here is an overview:

  • Hedge fund performance has remained weak, mainly due to the euro zone crisis, but also mixed macro statistics from the United States and fears of a hard landing in China
  • All major strategies are showing negative results since the beginning of the year, with Macro and CTA performing best in relative terms
  • SEB continues to have a cautious attitude towards Equity L/S during the current and coming quarters, with market conditions for Equity Long/Short remaining exceptionally difficult
  • Relative Value managers in fixed income investments performed relatively well in the last quarter. Looking ahead, there will probably be major upturn potential for bonds when there is favourable news about the euro crisis. SEB is therefore positive towards Relative Value during the next quarter
  • For Event Driven strategies, the third quarter was the worst since the 1998 Asian financial crisis. Even though various companies will probably seek higher revenues through corporate deals during an economic downturn, today’s turbulence in the euro zone are likely to hamper activity in the near future. Event Driven and Distressed are strategies SEB does not recommend at present
  • On the whole, Macro and CTA were the best-performing strategies during the third quarter, with a downturn of 0.9 per cent. They are viewed by most observers as a tool for portfolio diversification that is expected to perform well when other asset classes are having difficulty. Macro and Trading remain SEB’s first choices among hedge fund strategies in the near future
For a full copy of SEB's recent Investment Outlook: "A global search for return" published in December 2011 please contact: Robert Roessler, direct line: 0203 128 8592, seb@mhpc.com

BG

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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali