Funds Hub

Money managers under the microscope

from Global Investing:

What fund managers think

Bank of America-Merrill Lynch's monthly poll of around 200 fund managers had a few nuggets in the June version, aside from the usual mood-taking.

Gold is too expensive.  A net 27 percent of respondent thought it overvalued, up from 13 percent in May. Then again, the respondents to this poll have reckoned gold is too pricey since September 2009.

Don’t all rush at once

Photo
-

Bank of Korea 1Currency managers nurture the view that emerging market central banks need to diversify their holdings away from the US dollar but so far there seems to have been little movement in this direction. Ousmene Mandeng, head of public investment advisory at emerging markets specialist Ashmore, notes that historically central banks act unilaterally to reallocate their reserves, especially when they are concerned about a possible impairment due to devaluation.

The problem for central banks with very large US dollar reserves – such as China – is the lack of a viable alternative reserve currency. “For the inertia to be overcome we will need a common framework so that countries can get out of the dollar in an orderly fashion,” Mandeng says.

Morning line up

Photo
-

Hedge fund stories from the past 24 hours from Reuters and elsewhere:

rtxcg5s

Hedge funds call for softening of EU plan for pay caps – Daily Telegraph

 

SFO probes Dynamic Decisions - Reuters

 

Fund manager Horseman to step down - Reuters

 

Insider trading becomes systemic at hedge funds – Bloomberg

 

Chinese sovereign fund hires Tudor manager - Wall Street Journal

Morning line-up

Photo
-

Hedge fund stories from the past 24 hours from Reuters and elsewhere:

rtxcg5s

Fuld says being “dumped on” for Lehman failure – Reuters

MF Global starts Japan brokerage – Bloomberg

Despite UK taxes, funds stay in London – WSJ

US hedge fund locks horns with Chinese tycoons – South China Morning Post

Pushing back against energy speculation limits – Institutional Investor

from Global Investing:

Slow and steady wins the race: Malkiel

Investment guru Burton Malkiel, author of A Random Walk Down Wall Street, has revealed at a briefing that Chinese equities form the largest part of his personal satellite portfolio, although the core remains in low-cost index funds.

Malkiel, in town to beat the drum for Vanguard's index funds, argued that China will be the biggest economy in the world in 20 years' time, but most investors are underweight the emerging giant. "I'm a real expert on China - I've been there five times," he joked, but made the serious point that most investors have a home bias.

  •