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Hedge fund investors are keen to commit to the asset class, with more than half making two or more investments on average per year, a Preqin study reveals.
Just under one-third make between two and three new investments per year, while 17% make between six and ten.
The study also found that institutional investors can be a long-term and stable source of capital for hedge funds; over one fifth of investors are keen to keep capital invested in a fund for over five years and 16% state that this is the minimum time for which they will stay invested in
The Reserve Bank of India’s (RBI) guidelines on securitisation transactions could promote the long-term growth of the Indian securitisation market, pending clarity on the tax treatment of Pass-Through-Certificates (PTCs), Fitch Ratings says.
Fitch believes that the requirement for a minimum holding period for each loan before it becomes eligible for securitisation would be a credit positive, as this would eliminate first-payment default risk.
The requirement to hold between 5%-10% of the issuance may not represent a dramatic shift for Indian originators who have in any case provided the first-loss credit enhancement in most transactions. But it is likely to result
Credit Suisse’s Asset Management Division has launched the Credit Suisse Liquid Alternative Fund, which seeks to offer access to hedge fund-like returns, with the flexibility of daily liquidity, increased transparency and 1099 tax reporting.
The fund complements the growing suite of alternatives-focused mutual fund offerings available through the Asset Management division of Credit Suisse.
Jordan Drachman (pictured), Head of Research for Credit Suisse Alternative Beta Strategies, says, "Hedge funds offer the potential to improve diversification and reduce correlation and portfolio volatility; however, investors needing access to capital are often constrained by hedge funds’ illiquid nature, and the process for investing
In his latest Market Update, Russ Koesterich, iShares Global Chief Investment Strategist, argues that current market expectations for volatility appear too low and investors should consider adopting a modestly more defensive stance…
Equity market volatility has been relatively low in the past six months. Since early 2008, the annualized volatility on the S&P 500 has been close to 30%, but in the last six months, it’s been a pleasantly dull 17% and stocks have benefited from another torrent of central bank liquidity. Whilst the VIX has risen in recent days, it has still tended to trade below its long term
Cheyne Capital Management (UK) LLP announced the launch of a pair of UCITS IV funds this week: the Cheyne Global Credit Fund and the Cheyne European Real Estate Bond Fund.
The Lyxor Hedge Fund Index was almost flat in April with a performance of -0.02% (+1.52% in 2012), showing resilience despite disappointing economic news flow.
Eight Lyxor Strategic Indices out of 14 ended the month in positive territory, led by Lyxor CTA Long Term (+1.04%), Lyxor L/S Equity Market Neutral (+0.7%) and Lyxor L/S Credit Arbitrage (+0.4%).
April did not bring much good news to feed upon. The sentiment boost brought by the ECB’s LTRO fizzled, and Euro related fears resurfaced during the month. Mixed Italian and Spanish auctions at the start of the month and political uncertainty around elections
Hedge fund flows as measured by the GlobeOp Capital Movement Index advanced 1.24% in May.
“May produced another month of positive net flows into hedge funds,” says Hans Hufschmid (pictured), chief executive officer, GlobeOp Financial Services (LSE:GO.). “Gross inflows and outflows were moderate.”
The GlobeOp Capital Movement Index represents the monthly net of hedge fund subscriptions and redemptions administered by GlobeOp. This monthly net is divided by the total assets under administration (AuA) for GlobeOp’s fund administration clients.
Cumulatively, the GlobeOp Capital Movement Index for May 2012 stands at 146.10 points, an increase of 1.24 points over April
Hedge funds investing in Emerging Asia posted industry-leading gains to start 2012, with the HFRI EM: Asia ex-Japan Index gaining 7.4 per cent in 1Q12, the best start for the index since 2006 when it gained 12.3 per cent, according to data released today by HFR.
The HFR index of Emerging Asia hedge funds easily outperformed Chinese equity markets by over 450 basis points for 1Q; recent gains follow a volatile 2011 which saw the HFRI Asia Index decline by -18.08 per cent. In contrast, while the HFRX Japan Index gained 5.2 per cent for 1Q12, it trailed the strong
NYSE Liffe, the European based derivatives business of NYSE Euronext, has announced GF Futures (Hong Kong) Co Ltd, a Hong Kong based subsidiary of GF Group, as its first colocation customer from Asia.
GF Futures is a leading player in the Asian derivatives market and through its membership of NYSE Liffe, clients of GF Futures can now access the Exchange’s European markets through its colocation facilities based in NYSE Euronext’s European Liquidity Centre.
“We are delighted to welcome GF Futures not only as a member of NYSE Liffe, but also as our first Asian based colocation customer,” says
Cheyne Capital Management (UK) (Cheyne Capital) is launching two UCITS IV compliant funds – the Cheyne Global Credit Fund and the Cheyne European Real Estate Bond Fund.
Cheyne is the investment manager to the funds with Citibank International plc, Ireland Branch, acting as Administrator and Custodian.
These UCITS funds have been launched in response to investor demand and their investment portfolios are based on those of two existing flagship Cheyne strategies.
The Cheyne Global Credit Fund is an actively managed, directional UCITS IV compliant fund offering weekly liquidity. It positions investment grade and crossover credit, primarily in North
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