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Komfie Manalo, Opalesque Asia: Asian long/short equity managers, in particular long biased ones, have continued their meteoric rise, reports Lyxor Asset Management in its latest Weekly Briefing: a typical long-biased Asia Pacific manager was up +10% last week, bringing the fund performance year to date above 30%.
Meanwhile, U.S. long/short equity funds continued to show strong alpha generation at a time when European managers have found it increasingly difficult to create consistent alpha. As long as the European Central Bank’s quantitative easing (ECB QE) lifts all stocks, it suggests that the short books of European long/short are somewhat costly.
Philippe Ferreira, Lyxor AM’s head of research, managed account platform, said, "Fears of an imminent rate hike in the U.S. have faded as a result of data releases being below expectations. A number of Fed speakers also made the case for holding off on the first rate hike. As a result, the U.S. dollar is down almost 3% against major currencies since the recent peak in mid-March, i.e. before the latest FOMC meeting. U.S. equities have regained some color and 10y Treasury yields have fallen by more than 20bp since mid-March."
Emerging markets benefit from benign market
According to the Briefing, emerging markets, in particular in Asia, have largely benefited from the benign market conditions. The MSCIEM is up 12% since the FOMC meeting, fuelled in...................... To view our full article Click here
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