Sat, Nov 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Comment: Equity hedged and event driven managers winners in September and likely for 2013

Thursday, October 03, 2013
Opalesque Industry Update - Many equity-hedged and event-driven hedge funds have continued to hold and increase positions during September, and were rewarded as several equity events occurred and markets moved higher. Anthony Lawler, portfolio manager at GAM, comments that he expects to see the trend of equity-hedge and event-driven funds out-performing other hedge fund strategies to continue through the end of the year.

“Equity-hedged and event driven managers remain tactically bullish and fully invested, indeed with some increases in net and gross exposure after the Fed’s ‘no taper’ surprise. In September a number of public companies widely owned by event managers announced deals, asset dispositions, divestitures, and other accretive transformations which were well received by the market. Share buybacks also continue to be a positive catalyst for equity prices. This surge in corporate activity is helpful and expected to continue if the Fed remains accommodative and Washington agrees a new budget and raises the debt ceiling."

Lawler points out however that the Fed's ‘no-taper’ surprise in September 2013 did not help all managers: “The consensus long US dollar position and shorts in emerging markets hurt global macro managers when the “no taper” announcement surprised markets, weakening the dollar and re-invigorating emerging market bonds and currencies. Now those long US dollar and short emerging markets positions have been somewhat reduced while the Japan reflation theme remains in place through mainly long Nikkei and short Japanese yen holdings," Lawler said.

More broadly, hedge fund performance for September was positive as measured by the HFRX Global Hedge Fund index which was up 1.0 %. At the strategy level equity-related strategies fared best with event driven up 2.1% and equity hedge up 1.4%, while macro/CTA and relative value were down -0.3% and up 0.4% respectively, according to HFRX strategy index performance data.

Press release

www.gam.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. Macks aim to raise $750m for real estate debt fund[more]

    From Therealdeal.com: Father-son duo William and Richard Mack and former Blackstone Group managing director Peter Sotoloff are starting a new real estate debt fund. Together, the trio hopes to raise more than $750 million for the private equity fund, according to the Wall Street Journal. The fund wi

  2. Manager Profile - Seth Klarman: Lessons for retail and institutional investors[more]

    From Valuewalk.com: Seth Klarman is virtually unknown outside value circles, despite his impressive record and value of assets under management. On average Baupost has returned 19% p.a. despite holding a large portion of its assets in cash. During the financial crisis, Seth Klarman’s funds lost some

  3. North America - FATCA leads 75% of U.S. expats to consider dropping citizenship[more]

    From International-adviser.com: Nearly three quarters of American expats are considering the renouncement of their citizenship following July’s introduction of the “absurd” Foreign Account Tax Compliance Act (FATCA). The findings, which were revealed in a survey by deVere, come alongside the news th

  4. New app allows asset managers easy interaction with portfolios, securities, holdings, transaction details[more]

    Komfie Manalo, Opalesque Asia: Global financial services software company SS&C Technologies Holdings has launched Explorer, a powerful data visualization and analysis tool that turns critical investment data into meaningful information. Explore

  5. Opalesque Exclusive: Mariner’s new healthcare mandate applies strategic approach across pharmaceutical and biotech sectors[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A team of two was hired in February this year t