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Alternative Market Briefing Weekly

Opalesque Roundup: Hedge fund managers' outlook divided between global recession and bullishness: hedge fund news, week 39

Saturday, September 19, 2015

In the week ending 18 September, 2015, hedge fund managers are divided in their market outlook. Some managers are bracing for a global recession by selling stocks and commodities while Bill Ackman said he's more bullish on the stock market than fellow hedge-fund titan David Tepper based on valuations. Kyle Bass has warned that the accelerating bad debt in China is the real danger; and Ray Dalio said he was worried about the next economic slowdown because monetary policy will be less effective than in the past.

Anthony Limbrick told hedge funds to prepare for a new era in increased volatility as the recent market turbulence is a just a preview of what is to come, and also the esteemed Robert Shiller said he sees the "risk of substantial declines" ahead. There were also reports that the hedge fund industry has admitted that its models are vulnerable to the greater transparency of technological advancement. For the whole industry, a growth in co-investments and liquid alternatives are putting downward pressure on hedge fund fees.

RWC will launch the RWC Global Emerging Markets Equity fund in November; Nikko AM announced the launch of its UCITS version of Asia ex-Japan Equity Fund; and KeyQuant has announced the launch of its new Cayman Fund, the Key Trends 15 Fund.

Nearly 1,300 of China’s hedge funds have shut down since the Chinese stock market plunge in August; and Allen & Co. is shutting down its $850m merger arb......................

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