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The current market environment has led some investors to completely avoid equity markets. But it is those kinds of uncertain and volatile conditions that make long/short strategies highly relevant today as they offer uncorrelated returns and reduced volatility, say Gilles Sitbon (pictured), fund Manager of Sycomore L/S Opportunities, and Olivier Mollé,fund manager of Sycomore L/S Market Neutral…
Market conditions have proven difficult for equity managers for several years in a row now. A historically high degree of risk aversion and tighter regulations (Basel III and Solvency II…) have kept institutional investors away from the equity asset class. In addition, most
Orc, a provider of technology and services for the global financial industry, is to support Eurex Exchange’s new trading architecture, the all-new trading platform scheduled for launch on 3 December 2012.
Orc says clients will immediately benefit from performance improvements, enhanced features and greater flexibility offered by the new platform, including new order types and more efficient processing and reporting.
Eurex Exchange’s new trading architecture will be launched in steps over a three to four month period. Orc, by working closely with Eurex Group, will support the migration from day one in each of these steps.
“Eurex Exchange’s new platform
Last week’s buy-side notional cleared on SwapClear is nearly double the amount of the clearing service’s previous industry record-breaking week, totalling USD233.4bn.
Additionally, SwapClear hit its second trillion in cumulative buy-side notional cleared in only two months (USD2.016trn).
SwapClear believes that these industry records and the rapid pace at which they were achieved are evidence that buy-side clearing is gaining momentum ahead of the regulatory mandates.
Historical analysis suggests that diversifying portfolios with managed futures may enable investors to earn better risk-adjusted returns, according to a white paper from Forward.
Titled Managed Futures: Stepping Up the Quest for Portfolio Diversification, Forward’s white paper notes that managed futures strategies historically have maintained very low correlations to stock and bond indexes while producing equity-like returns.
Over the 32-year period ending 31 December, 2011, the Barclay CTA Index achieved a compound annualised return of 11.16 per cent versus annualised gains of 11.06 per cent for the S&P 500 Index and 8.69 per cent for the Barclays Capital US
The Cayman Islands court has delivered judgment in a high-value dispute concerning the effectiveness of investor side letters and whether restructuring agreements limited an investor’s redemption rights under the fund’s articles.
Fintan Master Fund Limited, acting through its nominee, invested USD45m in the Medley Opportunity Fund in late 2007.
Shortly before investing, Fintan entered into a side letter with the fund, which granted Fintan favourable terms vis-à-vis other investors. This included a concession that when Fintan redeemed its investment, the fund would pay the redemption proceeds immediately in cash, so far as possible.
When the fund suffered a liquidity crisis
JP Morgan Worldwide Securities Services has added reporting capabilities for Form PF, the Securities and Exchange Commission’s new regulatory filing for registered investment advisers, to its suite of services.
The new reporting capability will provide clients with access to business critical information allowing them to meet this regulatory requirement.
Form PF is designed to assist the Financial Stability Oversight Council in its assessment of systemic risk in the US financial system. The new SEC rule requires investment advisers registered with the SEC that advise one or more private funds and have at least USD150m in private fund assets under
The European Repo Council of the International Capital Market Association (ICMA) has released the results of its 23rd semi-annual survey of the European repo market.
The survey, which measures the amount of repo business outstanding on 13 June, sets the baseline figure for market size at EUR 5,647 billion compared to the total figure of EUR 6,204 billion reported in December 2011.
Based on a constant sample of banks, the market contracted over the last 6 months by 9.9%. This decline was in large part due to the effect of the ECB’s 3-year Long Term Refinancing Operations (LTRO), both of
Aquila Capital, the Hamburg-based alternative investment company has launched the AC – Risk Parity 17 Fund, extending its existing and successful Risk Parity offering.
Aquila Capital’s Risk Parity strategy, previously offered two levels of volatility, the AC – Risk Parity 7 and 12 Funds, and was one of the first absolute return funds in a UCITS format. The AC – Risk Parity 17 Fund is modelled on its predecessors and offers a target volatility of 17%.
The AC – Risk Parity 17 Fund allocates risk across different asset classes, investing in equities, bonds, commodities and interest rates based on
The New York Stock Exchange (NYSE) and NYSE MKT have temporarily assigned custodial responsibility for approximately 524 New York Stock Exchange (NYSE) and 156 NYSE MKT listed securities from the Designated Market Maker (DMM) unit of Knight Capital Americas LLC to the DMM of GETCO LLC.
Exchange rules permit the temporary reallocation of any security whenever the Exchange believes such reallocation would be in the public interest. Upon Knight Capital Group, Inc’s completion and approval of a recapitalization plan, all temporarily reassigned NYSE and NYSE MKT securities as well as DMM staff, operations and systems oversight will be returned to
The Dow Jones Credit Suisse Core Hedge Fund Index closed up 1.02% in July as six of the seven index component strategies reported positive results for July.
The top perfuming strategy was managed futures (3.26%) while Fixed income arbitrage (-0.57%) was the only strategy to finish the month in negative territory.
The Dow Jones Credit Suisse Core Hedge Fund Index provides daily published index values which seek to enable investors to track the impact of market events on the hedge fund industry.
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