Sat, Jan 21, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Fed taper will hurt markets, though hedge funds unconcerned about rates impact

Wednesday, December 11, 2013
Opalesque Industry Update - Aksia’s third annual institutional hedge fund manager opinion survey revealed that managers are overwhelmingly negative on the potential impact of Federal Reserve tapering on markets. Most managers surveyed expect tapering to begin within the next few months (during Q1 ‘14), and 75% of respondents expect a significant negative impact on global markets. However, just 10% of managers view rising rates as hurtful to their strategy. The survey, conducted in late October through early November, polled 198 managers collectively managing more than $1 trillion in hedge fund assets.

“The survey gets inside the heads of managers and illustrates their opinions about both the markets and the hedge fund business,” commented Jim Vos, CEO of Aksia in announcing the findings. “While altogether a fairly cynical bunch, especially when it comes to newfangled hedge fund businesses, there is also a good degree of optimism about regulatory improvements, the functioning of the markets and longer term economic prospects.”

While hedge fund managers hold a very poor opinion of global political institutions, they are more supportive of central banks. On their handling of the economy and stimulating growth, the Bank of Japan and Prime Minister Abe led the class with a “B” grade, while the U.S. Congress garnered the “dunce” cap receiving an overall “D”, with 38% giving Congress an “F”. Other key findings of the research show:

- Managers estimate they need to deliver, on average, annualized returns of 9% to keep their investors happy;

- Only 1% of respondents say they intend to advertise their funds as a result of the JOBS Act - a definite damp squib;

- More than 70% of managers responding indicate they have no plans to offer 40 Act products;

- Despite the fact that many investors are now seeking out good ESG/SRI practices as criteria for investing, barely 10% of hedge fund managers say they actively apply ESG/SRI policies to their portfolios;

- Emerging Markets and Asian focused managers are the most pessimistic regarding the fundamentals of EM economies in the coming year.

Press release

Aksia is an independent hedge fund research and portfolio advisory firm, serving institutional investors across the globe. With offices in New York City, London and Tokyo, Aksia advises sophisticated investors who currently have more than $49 billion committed to hedge funds. www.aksia.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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised