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Bailey McCann, Opalesque New York:

Investors have responded to the global sell-off in equities by piling into Treasury inflation protected securities (TIPS). By last Friday, investors had put $1.1 billion into the asset class in the wake of the equities downturn, according to data from EPFR. Inflows to TIPS are at the highest that they've been since 2015 on fears that interest rates may start to rise on news that inflation has ticked up slightly in the US.

TIPS have also caught the attention of hedge fund managers. "We think inflation is slightly underpriced, especially in the US," Nick D'Onofrio co-founder, Managing Partner and Chief Executive Officer at $1 billion London-based North Asset Management, tells Opalesque in an interview. "If Hillary Clinton wins, we could see rate rises happen more quickly." The firm has looked into TIPS as part of that view.

This isn't the only view North Asset Management has taken on the election. Earlier this month the firm was part of a group of hedge funds that won big betting on the relative strength of the Mexican Peso after realizing that investors were punishing the currency because of Donald Trump's comments about US policy toward Mexico.

"The market hasn't priced in a rate increase," D'Onofrio says. "The market is still overleveraged and reactive to any piece of news."

His view is echoed by Mark Haefele, global chief investment officer at UBS Wealth Management, who recently told clients in ......................

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