Wed, Jan 23, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Veteran manager of U.S. equity long/short hedge fund says history may be repeating itself

Thursday, October 25, 2018

amb
Art Holly
B. G., Opalesque Geneva:

According to Arthur (Art) Holly, who last year launched Blue Wave Global Investors LP, a U.S. equity long/short hedge fund, some of what is happening in the financial markets feels like 2007 all over again.

When the Dow Jones Industrial Average, the Nasdaq Composite and the S&P 500 dropped by several percent earlier in October, Blue Wave went down about 184 basis points at its lowest.

The reasons why the market went down so sharply are due to "everything under the sun," he tells Opalesque: "China is slowing down, trade tariffs issues, a president with a very different managerial style which causes uncertainty, the Fed raising interest rates, a bond market that has got clobbered recently, credit spreads that are very tight and starting to widen, junk bond issuance that is almost non-existent because everybody is using the leverage loan market, troubles in the EU with respect to Italy, and finally the internals of the market have been falling apart. Parts of this story feel like 2007 all over again."

The fund has been running a flat exposure since the first week of the month. Its dynamic hedging model allows the team to take net exposures from 55-60% down to zero within 12 hours when markets distribute lower and seek value at lower price levels. The model can also get back to the previous levels of exposure quickly when markets distribute higher, he continues. "That's one part of our secret sauce. The other part of the secr......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. News Briefs: The Jeff Bezos divorce: $136bn and Amazon in the middle, Bridgewater Associates partners with consulting firm, Cyprus no longer Mediterranean haven for Russian businesses, Goldman Sachs on course to launch cash management in mid-2020[more]

    The Jeff Bezos divorce: $136bn and Amazon in the middle From Mint: The announcement by Amazon founder Jeff Bezos, the world's wealthiest man, and his wife that they will divorce has captivated the imagination -- how will they split his giant fortune, estimated at $136 billion? And what wi

  2. Institutional Investors: Institutional investors plot large property allocations, Qatar Investment Authority aims to reach $45bn in U.S. investments, Louisiana Teachers assigns $200m, SoftBank move to slash WeWork investment sends shockwaves[more]

    Institutional investors plot large property allocations From FT: Institutional investors plan to make large allocations to property in 2019, taking them closer to their desired targets. At least €72.4bn of new capital is expected to flow into real estate this year, according to a

  3. Legal: Attorney sues after Tampa hedge fund goes under, Hedge funds showing increased interest in litigation claims, Argentina sued again by hedge fund on bonds tied to GDP growth[more]

    Attorney sues after Tampa hedge fund goes under A Tampa hedge fund company may be in legal trouble after the firm that was holding its money was sued by a lawyer who claimed "gross negligence" caused the fund to lose tens of millions of dollars. James Cordier, the head of optionseller

  4. Activists: MGM hands board seat to activist hedge fund Corvex's Meister, PG&E shareholder BlueMountain challenges bankruptcy plans, Gulfport pledges share buybacks after hedge fund demand, PPG Paints itself into a corner[more]

    MGM hands board seat to activist hedge fund Corvex's Meister From Reuters: MGM Resorts International has struck a deal with hedge fund Corvex Management's founder, Keith Meister, to give him a board seat, one week after a rival activist investor was seen building a position in the casino

  5. Opinion: Can you beat Warren Buffett's investment returns using data?[more]

    From Seeking Aplha: The ideal hedge fund portfolio would use leverage to take a variety of uncorrelated risks that all cancel each other out, leaving the fund with little to no net exposure. For example, if you could invest in enough items with no correlation to the business cycle, like earthqua