Mon, Jan 16, 2017
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.

ÂÂÂ

ÂÂÂ

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 ÃÂÂÂÅ“return-free riskàof 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. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  4. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock

  5. Eurekahedge Hedge Fund Index up 1.01% in December (+4.48% YTD)[more]

    Hedge funds gained 1.01% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as t