Thu, Apr 17, 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   |   
Banner
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. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an