Strategy
Myriad factors impact major currency pairs, says Gallo
Clashing currencies
Convertible arbitrage hedge fund strategies continue to outperform
Developed Europe-focused funds report positive gains
Cyprus bail-out does not stop long-term problems for euro
The eurozone faces mounting political and social tensions. Its latest policy moves on the Cyprus bailout are likely to exacerbate the situation as longer-term problems remain, concludes Saxo’s Hardy
Hedge funds split on outlook for junk bonds
Split on junk
Falling correlations signal better times for equity long/short hedge funds
Analysis from JP Morgan shows strong relationship between intra-stock correlation and equity long/short hedge fund returns
Advent Capital debunks convertible arbitrage myths
Myths and reality
Activist hedge funds significantly improve company performance
Positive effect from activist intervention
Solid performance from Latin America and India-focused hedge funds in 2012
Macro and managed futures strategies struggle in 2012
Spectre of tail risk haunts hedge fund investment decisions
Chasing the tail
CTAs are an inexpensive and effective tail hedge, says AHL
Momentous times
China-focused hedge funds produce outstanding performance in 2012
China-focused hedge funds performed well in 2012 and tend to show significantly lower volatility compared with their equity benchmark. Event driven and special situation funds were a positive for 2012.
Hedge funds expect abundant growth opportunities in sub-Saharan Africa
Promise of growth
Hedge fund managers show skill in finding value throughout 2012
Skill in finding value
Hedge funds see opportunities in shadow of Basel III
Contrasting capital considerations
Gaining a perspective on currency hedge fund industry recent performance
Currency role in institutional portfolios should expand
Hedge funds struggle with financialisation of commodity markets
Changing fundamental drivers
Managed futures/CTAs gaining traction with investors
Research on how investors are protecting themselves from tail risk events shows a preference for managed futures/CTAs. There is also reluctance to use single hedge fund strategies as protection.
Orphan bonds could be source of absolute value
Value can be found in bonds despite central bank interventions that are impacting spreads. Absolute value is hard to fund with the exception of orphan bonds, says GAM fixed income expert Haywood.
Global macro hedge funds more correlated as drawdown control becomes priority
Changing of the guard
FX hedge funds rethink strategies as returns fall
Switching gears