Tue, Sep 23, 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. 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