Tue, Feb 21, 2017
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   |   
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. With $54bn in assets, Philippines is ready for hedge funds, alternative investment products[more]

    Komfie Manalo, Opalesque Asia: With the country's outstanding fund management industry at $54bn and growing, the Philippine market and its investors are ready to invest in "more sophisticated" asset management products, like hedge funds and alternative investments, said Deanno J. Basas, presi

  2. SoftBank to buy Fortress Investment for $3.3bn[more]

    From Reuters.com: Japan's SoftBank Group Corp on Wednesday said it has agreed to buy Fortress Investment Group LLC for about $3.3 billion, looking to add investment expertise as it prepares to launch the world's largest private equity fund. The all-cash deal is SoftBank's first major investmen

  3. ...And Finally - Truth in advertising[more]

    From Newsoftheweird.com: Girl Scout Charlotte McCourt, 11, of South Orange, New Jersey, saw her sales zoom recently when she posted "brutally honest" reviews of the Scouts' cookies she was selling -- giving none of them a "10" and labeling some with dour descriptions. She was hoping to sell

  4. Europe - Brexit - Updated legal guide, Euro exchange rates set to tumble as hedge fund's super computer predicts Marine Le Pen will be next French president, Swiss fund market hits all-time high[more]

    Brexit - Updated legal guide From Herbertsmithfreehills.com: When we began analysing in depth the possibility of Britain exiting the EU (Brexit), 18 months prior to the June 2016 referendum, the business consensus was very much that Brexit was a remote prospect that either would never hap

  5. People - Gramercy appoints Bradshaw McKee as managing director of Capital Solutions, Trump taps Cerberus's Feinberg to lead intelligence review[more]

    Gramercy appoints Bradshaw McKee as managing director of Capital Solutions Gramercy Funds Management LLC, a $5.8 billion dedicated emerging markets investment manager, today announced the appointment of Bradshaw McKee to the position of Managing Director, Capital Solutions and Distressed