•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Benedicte Gravrand, Opalesque Geneva for New Managers:

As the S&P 500, the Nasdaq Composite, the Dow Industrials and the Russell 2000 index of smaller stocks are simultaneously hitting new record highs, and bonds are selling off, many hedge fund managers are re-positioning their portfolios.

We surveyed a number of emerging hedge fund managers from around the world to find out their reactions to the post-US election market. It seems that most are gearing up for an increase in market volatility.

David Meneret, who runs a US-focused relative value credit hedge fund at New York-based Mill Hill Capital, reported more volatility in US fixed income, which is positive for his strategy as volatility tends to create dislocations across credit markets. "We watch market implied volatility very carefully and believe that uncertainty with regards to new economic measures might create more volatility in the next 12 months," he tells Opalesque.

Furthermore, the 10-yr Treasury went from 1.83% to 2.31% between election day and 22nd November – compared to a previous low of 1.36% in July. This has no doubt affected funds that were not positioned for a Trump presidency......................

To view our full article Click here