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Benedicte Gravrand, Opalesque Geneva:
Investors generally feel quite confident about the global macro strategy, and with good reasons, as opportunities abound within the current economic turbulence. But global macro hedge funds have returned mixed results so far this year.
Good for those who shorted financial, Indian, Brazilian, and Australian stocks
One hedge fund which did well is Friedberg Global-Macro Hedge Fund Ltd. It was up 16.22% in August and up 30% YTD. Its compounded annualized return is 19.11% since inception in Dec-2001, with an annualised volatility of almost 19%.
David Rothberg, a member of the risk management committee of the fund and the CIO of Niagara Capital, told Opalesque that the Friedberg Global Macro Fund had made money in August shorting stocks – financials, Indian, Brazilian, and Australian in particular – and going long on gold, bonds of various sorts, and also shorting oil.
Shorting Indian and Brazilian stocks seems to have been a good idea as indeed during the month, the Dow Jones BRIC 50 Index was down 9.87% - and down 12% YTD, compared to +11.94% in 2010.
"The big four countries [Brazil, Russia, India, China] haven't performed well together this year, leading to a drop in performance of BRIC funds and interest from investors," Xav Feng, head of Asia Pacific Research for Lipper ...................... To view our full article Click here
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