Sat, Oct 25, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

FRM predicts compelling case for active management

Tuesday, January 08, 2013
Opalesque Industry Update - FRM, Man Group's $19.5bn fund of funds and managed account business has published its 'early view' on hedge funds.

Market outlook

  • Fiscal reformation across developed markets will continue to be a dominant factor on market price action through 2013 and beyond.
  • In the US, the next milestones will be the final decisions on spending cuts and the debt ceiling deadline, both of which fall on 1 March 2013.
  • In Europe, politics is likely to provide the potential stumbling-blocks. The Italian elections in February are the first test, and afterwards it difficult to see how any concrete decisions related to the fiscal compact might be agreed before the German election takes place in September.
  • Emerging markets in aggregate appear to be relatively stable with modest growth expectations over the coming period.

Hedge fund outlook

  • The outlook for traditional investments is uncertain: risk-free assets have negative real yields and the likelihood of an increase in short-term rates appear to be slim to none.
  • With the outlook for passive investing so poor, the case for active management is even more compelling. As a result, investors are continuing to allocate to active management in order to achieve the desired outcomes from their portfolios, as evidenced by the growth of the hedge fund industry in 2012 and expectations of further growth in 2013.
  • It is our long-term expectation that this delivery of absolute returns will continue to be at the core of hedge fund investing.

Press release

bc

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. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t