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Komfie Manalo, Opalesque Asia: Alternatives asset management firm 50 South Capital expects global growth to gain momentum this year, albeit unevenly around the world. It added that U.S. consumption remains robust, and positive U.S. data gives the Fed the scope to raise interest rates in 2017 at a pace faster than forecasted just six months ago.
In its Hedge Fund Outlook, 50 South said that while less dovish in the past years, global monetary policy should remain very accommodative. What has changed, it added, is the pro-growth fiscal platform described earlier.
"While in the long term we believe this will be positive for the U.S. and global economy, specific policy is still undefined," the company said. "Until the size and pace of U.S. fiscal policy initiatives are better outlined, we will continue to focus on opportunistic and more neutrally oriented managers that can add value on both the long and short sides of their portfolios in equity, event and relative value strategies."
It added that the firm would likely take a pause in building its credit allocations further. Spreads tightened considerably during 2016 and, given that 50 South is not expecting significant defaults in the near-term, the company plans on waiting patiently for a better entry point.
However, 50 South believes that a pro-business administration in the U.S. and an accelerating economic growth environment will...................... To view our full article Click here
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