Funds Hub

Money managers under the microscope

Volatility a fact of life for BlackRock’s Lyttleton

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By Deborah Cicurel

After a month or two of volatile equity prices and a yo-yoing stock market, steady returns seemed about as likely as France lifting the 2010 World Cup.

However, Mark Lyttleton, co-manager of the Blackrock UK Absolute Alpha fund sees a way out, claiming his fund — which made money in 2008′s falling markets but underperformed equities in 2009′s rebound and in Q1 2010 – can navigate its way through the current macroeconomic worries.

He argues the fund’s two main themes, namely “that financial markets would continue to heal and that corporate discretionary expenditure would rebound strongly”, are still working.

And he has recently bought shares in IT hardware and software companies “in expectation that corporates will be reinvesting in their business”.

Morning line-up: Macro, aggro and the bank levy

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News and views on the fund industry from Reuters and elsewhere:

tea.jpgNY pension fund weighs in against BP – Reuters

Macro bets double – Bloomberg

Diplomat vs diplomat over hedgie rules – Reuters

Kipper Williams on the levy – Guardian

Binder on global macro opportunities – OpalesqueTV

Service providers flag hedge fund health

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Fund service providers were back in force at the GAIM hedge funds conference in Monaco this year, a small sign that the industry, while not exactly brimming with confidence, has at least crawled out of the doldrums of 2009.

The service providers including fund auditors, custodians and prime brokers, have drawn in their horns since the early years of the millennium when they were often the main sponsors of cocktails and dinners at large hedge fund events.

from Global Investing:

Equities — an ‘even years’ curse?

Are global equity markets under an 'Even Years Curse' that sees them underperform bonds in even-numbered years but beat fixed-income returns in odd-numbered ones? After some number-crunching, Fidelity International's' director of asset allocation Trevor Greetham suspects so.

"It's not just hocus-pocus but to do with global inventory levels," he explained at a forum organised by the London-based investment house.

Know your hedgie – Pix from Monaco

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Reuters snappers have been grabbing some headshots of hedge fund managers at GAIM this year. Thought we’d showcase a few here: Leda Braga, President of BlueCrest Capital Management, attends the GAIM International (Global Alternative Investment Management) hedge fund conference in Monaco, June 15, 2010. REUTERS/Sebastien Nogier (MONACO - Tags: BUSINESS HEADSHOT)

Leda Braga, President of BlueCrest Capital Management, attends the GAIM International (Global Alternative Investment Management) hedge fund conference in Monaco, June 15, 2010. REUTERS/Sebastien Nogier (MONACO - Tags: BUSINESS HEADSHOT)

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