Wed, Jul 29, 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. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The worlds biggest hedge fund Bridgewater Associates and one of the most vocal of Chinas potential is now turning its back against the worlds second largest economy as it joins a growing list of high-profile investors who are challenging Chinas potentials.

  2. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff managers firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team hes assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  3. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  4. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

  5. Investing - Carlyle teams with TCW in push for ordinary investors[more]

    From Bloomberg.com: Carlyle Group LP isnt backing down from its goal of offering alternative strategies to the masses, despite early setbacks. The Washington-based firm is teaming up with TCW Group, which is majority owned by Carlyle funds, to offer three vehicles that give ordinary investors acces

 

banner