U.S. mutual fund investors are ploughing on with bets on emerging market equities, according to the latest net flows numbers from our corporate cousins at fund research firm Lipper. Has no one told them there’s supposed to be a massive sell-off?
Despite the early-year rally in equity markets, some hedge funds seem to have had a disappointing start… yet again.
Fears that Athens is on the brink of crashing out of the euro zone and igniting a renewed financial crisis have rattled global markets and alarmed world leaders, with Greece set to figure high on the agenda at a G8 summit later this week. This chart shows the impact on assets since the Greek election:
How are hedgies performing this year?
The latest performance data from Nice-based business school EDHEC-Risk Institute shows various hedge funds strategies returned on average 1.46% in January, far behind the S&P 500 index which gained almost 4.5%.
Because of the peripheral euro zone bond implosion, many European bond market funds have suffered losses this year. JP Morgan says a major risk to European bond markets stems from liquidations by retail investors (aka Mrs Watanabe from Europe).
Do independent asset managers perform better than bank-run funds?
Lipper was recently approached to analyse the difference in performance between funds operated by broader financial services companies (banks and insurers) and those managed by ‘pure play’ asset managers.
Sovereign wealth funds, eager to be accepted in the West, are increasingly interested in showing the world that they care about environment and governance by investing in socially responsible firms.
The amorous intentions of the British are intimately connected to the performance of the stockmarket, extra-marital dating website illicitencounters.co.uk says.
It notes that although the website has been running since 2004, by far the biggest jump in membership has been in the past 12 months, when it leapt to 310,000 from 180,000 in the previous fiscal year.