Emerging markets assets are expected to further weaken this month, as EM economies grapple with a rise in Covid-19 cases and an uncertain recovery in China, Man Group officials said on Tuesday.
The advent of negative prices for the US West Texas Intermediate (WTI) oil benchmark will further squeeze growth and investment in the Permian basin, potentially heralding a sharp slide in US natural gas exports, according to Horseman Capital Management.
The recent equity market rally is unlikely to stave off the “devastating” economic impact of Covid-19 this year, according to Absolute Return Partners’ founder and CIO Niels Clemen Jensen.
By Don Steinbrugge, Founder and CEO, Agecroft Partners – The massive dislocations in the fixed income markets in March caused huge divergence in performance among hedge fund managers with similar strategies.
Pershing Square CEO Bill Ackman’s “very negative view” and “good sense of timing” powered the firm’s stellar USD2.6 billion gain last month but the high-profile activist hedge fund manager does not fear a protracted 1930s-style depression as a result of the Covid-19 shutdown.
Volatility across asset classes will remain elevated as global economies grapple with the continued coronavirus lockdown, with Black Swan events appearing “all too often”, according to BlueBay Asset Management.
Hedge funds trading emerging markets strategies face major dispersion in their assets, as the impact of Covid-19 – and the resulting government responses – diverges sharply across different regions and countries.
Last month, the impact of coronavirus caused stock markets to plummet. This led to a huge spike in volatility, with the VIX Index hitting a high of 82.69 on 16 March, benefiting macro strategies (according to the latest Q1 performance figures) as well as statistical arbitrage strategies like New Jersey-based Blueshift Asset Management.
Shorter-term managed futures strategies are gearing up for further episodic spikes in volatility in the coming months, leading to more opportunities to capitalise on continued market unpredictability.
Credit-focused strategies are emerging as a key area of focus for investors, as managers rush to seize on the “incredible” opportunities being thrown up by the recent widespread market turmoil.