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William Heard Benedicte Gravrand, Opalesque Geneva:

The Heard Opportunity Fund LLC, a hedge fund that invests in the telecom, media, technology, financials, industrials and energy sectors, returned 6.7% in 2016, and 33.8% since its July 2011 inception - compared to the HFRX Equity Hedge Index's respective returns of 0.10% and 4.6%. And in the first quarter of 2017, it gained 3.2% versus the index' return of 2.70%.

"In 2016 and the first few months of 2017, we have seen intra-sector dispersion widen as stock correlations fell to the lowest levels since the mid-1990s all while the VIX sits at an uncharacteristically low level," wrote Heard Capital's CEO/CIO William Heard in a yearly newsletter seen by Opalesque.

"In our view, given the cross currents, this environment may persist as geopolitics play a larger role, protectionism becomes policy, and central banks take divergent paths to protect their currencies. This backdrop presents a great opportunity despite the headlines, as assets re-price, growth rates find their equilibrium, interest rate paths diverge and expectations begin to recalibrate."

Some of the key macro debates Heard Capital will continue to monitor in 2017 are:

- Can Yellen deleverage the Fed balance sheet without triggering a taper tantrum? What's the implication of rising interest rates and inflation expectations on equities? - Given such a complex geopolitical landscape, what will be the consequences of tactics vs. s......................

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