Money managers under the microscope
Are we heading for another down year for hedge funds?
I ask because after a choppy six months or so, during which the FTSE 100 is down 3.6 pct, hedge funds have also lost 1.12 pct.
Some commentators are predicting a rebound in equities and other assets, but others expect further volatility, which could be harmful to funds’ returns.
Our stablemate Lipper, the fund research firm, is sticking its neck out for a better H2, arguing that earnings will surprise on the upside, double-dip fears will fade, and commodity investing will continue to throw up arbitrage opportunities. You can read Lipper’s latest report here.
I remember, at the Reuters Hedge Fund & Private Equity Summit in spring 2008, asking outspoken fund manager Hugh Hendry whether hedge funds might finish 2008 in the red after a tricky start to the year and losses of 4.4 pct in Q1.
It’s been a volatile few months for stock markets and many hedge funds have suffered as a result.
However, few have had such volatile performance as Superfund.
The managed futures fund, whose founder Christian Baha we profiled in May and who pops up in today’s FT in a section extolling the virtues of ‘Vienna as a financial centre’, saw its aggressive share class fall a hefty 28.37 percent in May’s turbulent markets, having lost more than half its value in 2009.
Big fall in short selling of sterling since budget- Daily Telegraph
News and views on the fund industry from Reuters and elsewhere:
Hedge fund fury over EU pay curbs – Independent
Jupiter adds co-managers to Distribution fund - Fund Strategy
Gartmore launches European hedge fund – Fund Strategy
Drinking has acquired a new meaning today: it may not be good for you, but it will help pay pensions.
That’s the spirit! Quite literally.
Next time your GP/health conscious spouse/friend tells you to cut on alcohol, you can tell them Diageo has sealed a deal with its UK pension fund trustees, which includes transferring ownership for 15 years of up to 2.5 million barrels of Scotch whisky to make good its 862 million pound deficit.
The mood at this year’s Fund Forum, if not exactly upbeat, has been less sombre than last year’s introspective summit, with a few more cocktail parties around the stands, but asset managers remain on the whole subdued.
The continuing market volatility has a lot to answer for, with renewed worries about a double-dip recession overshadowing events. But if nothing else, the recession has forced exhibitors in the Forum’s trade hall to be a bit more imaginative in their freebies this year.