Wed, Jul 8, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
New Managers January 2013

47N - The Pied Piper of Hamelin

47N Series

Fraser McKenzie

This article was authored by Fraser McKenzie, Manager Partner, http://www.47n.com/ 47 Degrees North Capital Management, a specialist alternative investment firm, and a pioneer in early-stage hedge fund investing. It was selected as one of three successful candidates out of 97 applicants to manage the emerging hedge fund managers program at CalPERS.

47N's objective of this series of articles is to discuss and inform on issues relevant to emerging managers, including corporate governance and investing.

ÂÂ

ÂÂ

The Pied Piper of Hamelin

The Pied Piper of Hamelin is the subject of a 16th century German legend. A piper dressed in colourful clothing and claiming to be a rat-catcher, promises to cure the town of Hamelin's rat infestation by luring them away with the music from his magical pipe. However, when the rats are safely gone the town's mayor refuses to pay the Pied Piper and the story takes a grim turn. He takes his revenge by this time luring away the town's children with his music - never to return.

Fast forward to the 21st century; the Federal Reserve and other major central banks around the world continue to ward off economic recession with their zero-interest rate music and eye-catching quantitative easing. The aim of policy makers is to push investors further and further out the risk spectrum, well beyond what one wag called the Ãâ‚Å“return-free riskÃâ‚Â of government bonds, into riskier assets with historically very low returns. This has worked. Investors have piled into high-yield bonds and even the U.S. sub-prime mortgage bonds that were so toxic......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.
New Managers
New Managers
New Managers

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. Opalesque Exclusive: New systematic strategy managed alongside research firm outperforms S&P500[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging CTA manager explains how he runs his strategy, which is based on an index produced by a research firm. Peter Turk is head of

  2. Opalesque Exclusive: New systematic strategy embraces machine learning[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The founder of a New York-based systematic trading firm, which offers a hybrid between alpha strategies and alternative feta at lower fees, describes his approa

  3. Larry Robbins' hedge fund Glenview buys 1m Tenet Healthcare shares[more]

    Komfie Manalo, Opalesque Asia: Glenview Capital Management said it bought an additional 979,482 shares at Tenet Healthcare Corp valued at $53.80 million, raising its stakes in the healthcare services company to 15.16%, reported

  4. Legal - Graysons hedge funds under scrutiny for possible ethics violations, Court rejects hedge funds motion to block merger of Samsung affiliates[more]

    Graysons hedge funds under scrutiny for possible ethics violations From Freebeacon.com: Rep. Alan Grayson is finding himself in hot water over managing hedge funds that bear his name, actions that are in possible violation of House ethics rules. Sitting members of Congress are prohibite

  5. Hedge funds decline in June as stocks tumble on Greek woes[more]

    From Bloomberg.com: Hedge funds posted losses across strategies last month as uncertainty over whether Greece will remain in the euro sent global stock markets tumbling. Winton Capital Management declined about 3.1 percent in June in its $12.1 billion Winton Futures Fund, leaving it down 1.9 percent

 

banner