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Bailey McCann, Opalesque New York:
Market participants of all stripes have found it hard to find consistent returns in the low growth, high volatility environment that has defined the market since the 2008 crisis. However, some firms are finding new opportunities by capitalizing on the downturn through liquidations, non-agency mortgage credit and event driven strategies. Many CIOs speaking at the SkyBridge Alternatives Conference currently underway in Las Vegas, Nevada noted that investors can no longer afford to sit on the sidelines and wait for markets to calm as macro uncertainty and high volatility are likely to be dominant trends over the next few years.
Even where economies are slowly recovering, like here in the US, the recovery is fragile and questions remain about the overall sustainability of US debt. "It is wise to be in uncorrelated strategies. US corporate earnings are strong but the US is still in crisis." said John Bader, Chairman & Chief Investment Officer, Halcyon Asset Management.
Bader noted that in the US, liquidations are providing an "exciting" opportunity as many of the assets associated with new liquidations come already monetized. He notes that distressed M&A is also providing similar opportunities. Halcyon is also looking at shorter duration and event driven opportunities, "we like bidding wars, they're idiosyncratically providing better upside potential," Bader said.
Many funds are looking closely at non-agency mortgage credit ...................... To view our full article Click here
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