Mon, May 2, 2016
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. Hedge funds see $14.3bn outflows in Q1, CTAs and multi-strategy lead net inflows[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry saw net outflows of investor capital in the first quarter of the year, totaling $14.3bn, data from Preqin showed. This continues from the $8.9bn overall net outflows that funds recorded in Q4

  2. Third Point calls Q1 "catastrophic" for hedge funds[more]

    Bailey McCann, Opalesque New York: The first quarter of this year was rocky for hedge funds based on aggregate performance from the industry, but now we are beginning to hear what the managers thought of it as quarterly letters make their way to investors. Dan Loeb, CEO of New York-based $17 bill

  3. Asia - Stabilization of China's capital outflows may hinge on Janet Yellen, Fink says China to do well this year as bubble threat postponed, Chinese hedge fund to invest in India’s infrastructure[more]

    Stabilization of China's capital outflows may hinge on Janet Yellen From Bloomberg.com: Whether China’s recent stabilization of its currency and capital outflows continues -- or downside pressure reignites -- may hinge in large part on Janet Yellen. If the Federal Reserve chair sticks to

  4. …And Finally - After all, judges are human too[more]

    From Newsoftheweird.com: In March, one District of Columbia government administrative law judge was charged with misdemeanor assault on another. Judge Sharon Goodie said she wanted to give Judge Joan Davenport some files, but Davenport, in her office, would not answer the door. Goodie said once the

  5. Comment - Unmasking the men behind Zero Hedge, Wall Street's renegade blog[more]

    From Bloomberg.com: Colin Lokey, also known as "Tyler Durden," is breaking the first rule of Fight Club: You do not talk about Fight Club. He’s also breaking the second rule of Fight Club. (See the first rule.) After more than a year writing for the financial website Zero Hedge under the n