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Alternative Market Briefing

GAIM Monaco day 1 - distressed securities and global macro are the favourite strategies, 3rd generation FoHFs should be technology-driven

Wednesday, June 18, 2008

Benedicte Gravrand, Opalesque Geneva reporting 'live' from the busy GAIM conference in Monaco (details here).

The newsmakers views on market volatility and strategies Following a lively rendering of the world economy by Professor Marvin Zonis of the University of Chicago (we will report more on this later), some of the hedge fund industry news-makers gathered to comment on a poll; Man Group's Peter Clarke, Tudor Group's Alberto Musalem Borrero, HSBC's Peter Rigg, Hermitage's Bill Browder, Liongate's Randal Dillard and Crossborder Capital's Michael Howell as the moderator.

To the question 'Is the latest credit crisis over? ', 16% of the audience responded 'yes', 61% 'no, it will continue' and 23% 'no, it will deteriorate'.

To the question 'Has market volatility permanently jumped higher? ', 45% of the audience said yes, and 55% said no. Peter Clarke commented on the positive aspect of volatility (he would have voted 'no'). Bill Browder said that the VIX index in the last few years showed levels of volatility which were unnaturally low. Now it should come back to normal levels. This will also entail more governmental regulations.

The last question, 'Which instrument styles in the next 12-18 months? ', such was the audience's feeling:

  • Equity hedge 6.4%
  • Equity market neutral 5.7%
  • Global ......................

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