By Philip Young, partner, Cooke, Young & Keidan LLP – For years people in the markets have been asking when the sovereign and corporate debt bubbles - fuelled by ultra-low interest rates and quantitative easing - would finally burst.
Investors are divided over how their hedge fund allocations have performed during the recent market crash, a new industry survey has found.
In the current climate, investors are looking for more defensive hedge fund strategies, capable of providing a predictable risk/return profile.
By Don Steinbrugge, Agecroft Partners – The changing landscape caused by the Coronavirus will lead to the largest shake out in the hedge fund industry since the 2008 market crash. Below are some of the ways we believe the Coronavirus will impact the hedge fund industry.
The market fallout from the coronavirus pandemic will see continued volatility across equity, credit and commodity markets – but also potential investment opportunities.
The European Securities and Markets Authority, the pan-EU financial watchdog, tightened rules on short-selling on Monday, and will now require hedge funds and other holders of net short positions to notify their respective national regulators of positions greater than 0.1 per cent of a company’s share capital.
Chenavari Investment Managers, the London-based credit-focused hedge fund, is building “agile and opportunistic” positions for yet further dislocation in global markets, going long in synthetic instruments – such as synthetic bonds and credit default swaps – and shorting cash assets, predominantly cash bonds.
Investment managers stand at a crossroads today. Faced with a rapidly changing digital world, they must determine which path to take to help them transform their business models and respond to the needs of a younger generation of investors.