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.
Pico, a provider of technology services for the financial markets community, has launched a new managed co-location facility for Japan Exchange Group (JPX).
In the current climate, investors are looking for more defensive hedge fund strategies, capable of providing a predictable risk/return profile.
Hedge fund strategies of all stripes have posted sizeable losses so far this month as fears over the coronavirus outbreak ripped through global markets, new data from Hedge Fund Research shows.
Portfolios built around value-based positions may be primed for a “significant” rally following the sustained global stock market slide, according to strategists at Man Group.
The UK’s Financial Conduct Authority last night (23 March) ruled out a ban on short selling, as many major hedge fund firms continue to weigh in with bearish bets to capitalise on the recent global market turmoil.
Algebris Investments, Davide Serra’s multi-asset class hedge fund firm, says markets are “ripe with opportunities”, and is now preparing to deploy its “dry powder” liquidity in a range of asset classes it sees as benefiting from future fiscal stimulus and persistent low interest rates.
Rhenman & Partners Asset Management, the Stockholm-based hedge fund firm which invests in global healthcare stocks, says the industry has not been shielded from the impact of Covid-19 - though different sub-sectors have been impacted in markedly different ways.