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In the week ending 10 April, 2015, a study by the IMF suggested that “plain-vanilla” mutual funds and exchange-traded funds, as well as hedge funds, can also be a risk.

The asset management manages over $75 trillion assets globally, exceeding 100 percent of world GDP, the IMF said. In particular, bond funds have grown significantly, investing in less-liquid assets such as emerging market bonds and high-yield corporate bonds. This has increased the mismatch between the liquidity of funds’ assets and liabilities, because many funds allow investors to redeem on a daily basis. (access the study here).

The Jackson National Life Insurance showed that investors lack alternative investing knowledge; fund managers are bullish on equities and alternative investments but are bearish on bonds, said Towers Watson; a Legg Mason survey has found that investors are planning to cut their exposure to emerging markets in 2015; a Societe Generale research note illustrated that hedge funds are very long on the U.S. dollar against other currencies; and a Preqin hedge fund report showed that insurance companies are taking aggressive approach to hedge funds despite restricted exposure.

Michel Massoud is preparing to launch his own hedge fund in the third quarter of 2015; Motilal Oswal Asset has launched an offshore hedge fund christened India Zen Fund; EquNev Capital has launched the distribution of K1T Capital, a systematic quant based hedge fund to the Indian investors; Kelly Hampaul is preparing to launch his own hedge fund in the second half of the year; and Zahra Group is set to launch a new $100m global equities hedge fund targeting ethical investments.

Kamunting Street Capital is closing down after suffering losses from junk-bond bets tied to hard-hit energy companies.

The HFRI Fund Weighted Composite Index ......................

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