Money managers under the microscope
In English, that essentially means funds that don’t go down much when the market falls (we don’t seem to mind if a fund matches the market during a bull market).
On Monday 47 Degrees North, a firm backed by the Guinness family’s (of brewing fame) investment office, said it had launched a fund investing in electricity markerts, Middle Eastern and North African equities, insurance-linked securities and volatility arbitrage which is designed to have low correlation to equity markets.
And today Kiwi quant firm Pure Capital said it’s launching a fund investing in liquid derivatives with the aim of protecting portfolios in equity bear markets while benefiting during bull markets.
Pure says it has run a similar structure via a managed account structure since 2007, with returns of 79 percent last year and 21 percent year-to-date.
It would appear that where to live is the hot topic for hedge fund managers at the moment.
Star manager Crispin Odey of Odey Asset Management is “seriously considering leaving” the UK over higher taxes, the Sunday Times reported, while Krom River moved to Zug from London for lower tax and a better lifestyle, the Financial Times reported last year.