Mon, May 16, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Volatility driving new opportunities for certain hedge fund strategies

Thursday, January 17, 2019

Laxman Pai, Opalesque Asia:

After the lowest equity market volatility in 100 years, financial markets are undergoing a regime change to a new, higher volatility norm, helping generate trading opportunities for certain hedge fund strategies as the relationship among stocks, rates and credit spreads evolves, affecting prices and correlations.

This is among the key findings of J.P. Morgan Asset Management's recently released inaugural Global Alternatives Outlook featuring a 12- to 18-month outlook for each of the key alternative asset classes.

Value stocks have significantly underperformed since early 2017, said the report that highlighted J.P. Morgan's CEOs, CIOs, portfolio managers and strategists' most promising investment ideas.

Should borrowing costs rise, or earnings expectations for growth stocks fall, value stocks can be expected to rebound, benefitting hedge fund strategies offering exposure to the equity value factor, it said.

"Cross-asset RV strategies can continue to benefit from an equity volatility pickup and widening credit spreads. So can market-neutral strategies that do not time the market trade to the relationship between securities and asset classes," the report said.

"As market risks continue to build in 2019, our Alternatives Outlook examines how, when and why investors might want to consider using offensive and defensive approaches across a wide range of alternative asset classes and investment strategies," said Anton Pil......................

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. Opalesque Exclusive: Long/short equity hedge fund with bear market experience has a winning quarter[more]

    B. G., Opalesque Geneva: Experience during a Russian bear market lasting five years enabled Christian Putz to identify certain investment patterns in the market which he now applies to his current investment strategy. London-based ARR Inv

  2. Opalesque Exclusive: Global equity manager focuses on symbiotic value chains[more]

    B. G., Opalesque Geneva: A global equity manager has made a point of focusing on the phenomenon of shrinking supply chains and avoiding zero-sum business models. London-based Tollymore Investment Partners is a private partnersh

  3. Satori Capital intros energy transition fund, a long/short equity strategy[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has launched Satori Environmental, a long/short equity strategy that primarily invests in securities impacted by the global energy sector's shift from fossil-based s

  4. The Big Picture: With the war, E, S, and G have collectively moved back to the fore[more]

    B. G., Opalesque Geneva: In this interview, Dr. Patrick Welton, founder and CIO of Welton Investment Partners, offers his observations on the major macro themes expected to affect the comm

  5. Other Voices: The selloff is overdone[more]

    Authored by Heeten Doshi, founder of Doshi Capital Management. Anyone who is still bearish and calling for more downside is foolish. The selloff is overdone. To point to further declines from here is poor risk management. With the Nasdaq 100 down 22% and S&P 500 down 13% for the year