Tue, Jan 21, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds help to deal with the ongoing market uncertainty

Tuesday, September 10, 2019

Laxman Pai, Opalesque Asia:

Despite colossal headwinds related to trade tensions, the Brexit deadlock, and the manufacturing recession, asset prices have been incredibly buoyant so far this year, Lyxor said in its weekly brief.

Equities are recovering from the August drawdown and are approaching late-July record levels. The asset class could deliver the highest yearly returns since 2013 (MSCI World +18% year-to-date). Meanwhile, global bond benchmarks are on track to deliver their best year since 2000 (Barclays Global Aggregate +8.8% year-to-date).

In this context, hedge funds are also posting robust returns. The Lyxor Global Alternative UCITS Peer Group was flat in August, leaving year-to-date returns close to +5% in USD terms. Performance in recent months was led by CTAs, which delivered impressive returns (+3.7% in August; +16.2% year-to-date as of September 3rd).

Considering the higher volatility of CTAs, the picture on a risk-adjusted basis is slightly different with L/S Credit leading the pack. It has an annualized Sharpe ratio of 6 so far this year (vs. 3.3 for Lyxor Global Peer Group).

"As we are head into Q4 2019, we turn more defensive. U.S. trade tariffs on USD 250bn of annual imports from China are set to increase to 30% from 25% starting October 1st," the report said.

Manufacturing new orders continue to signal a contraction and the Michigan survey signals an erosion in consumer confidence which might hurt private consumption, the last engi......................

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. Investing: For Howard Marks, investing is like a game, Hedge fund Lone Pine Capital LLC takes big stake in Under Armour, Merit Medical shares rise after hedge fund Starboard discloses 9% stake[more]

    For Howard Marks, investing is like a game From Institutional Investor: Investors can take apply lessons from games like backgammon and poker to their day jobs, according to Oaktree Capital Management's Howard Marks. Marks - who has enjoyed pursuits like Old Maid and gin rummy since

  2. Siguler Guff closes Small Buyout Opportunities Fund IV at $1.58bn[more]

    Laxman Pai, Opalesque Asia: Private investment firm Siguler Guff & Co. has raised $1.58bn for a fourth fund - Small Buyout Opportunities Fund IV - to invest with small buyout managers and directly in their portfolio companies. The New York-based multi-strategy private equity investment firm

  3. J.P. Morgan makes strategic investment in tech company for alternatives[more]

    Laxman Pai, Opalesque Asia: J.P. Morgan has taken an equity stake in Arcesium, an investment-management technology business that D.E. Shaw & Co. launched as an independent company in 2015. New York-based Arcesium LLC is an investment management technology and services firm, offering services i

  4. People: Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud, Swiss investment boutique appoints CIO & CCO[more]

    Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud From Standard: Hedge fund tycoon Lord Fink has been named chairman of bank software start-up Bud, which is backed by HSBC and Goldman Sachs. Fink, dubbed the "Godfather of hedge funds" for his role at Man Group, inves

  5. Legal: Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges, Partners Group sued over alleged breach of non-disclosure agreements[more]

    Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges From Bloomberg: A Toronto man who served time in prison after his hedge fund collapsed later concealed his identity and criminal past to defraud investors of $30 million through an initial coin offering of digital