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The Dow Jones Credit Suisse Hedge Fund Index gained 1.92 per cent in October and is up 8.02 per cent year-to-date.
Nine out of ten strategies in the index posted positive performance in October as rising global equity, commodity and credit markets provided tailwinds for managers across different strategies.
Managed futures was the best performing strategy for the month, up 4.29 per cent, and is among the top performers in the index for the year at 11.00 per cent. Performance was led by trend followers which generally profited from long exposures to precious metals, equities, agriculture and currencies.
Long/short equity
NYSE Euronext is expanding its range of strategy indices with the launch of six new products based on the CAC 40 index.
Three new leverage indices track the performance of a strategy that trebles to quintuples exposure to the CAC 40 index with the support of short-term financing. In a rising market, they enable investors to earn a daily return that amplifies that of the underlying index, minus the financing cost embedded in the strategy.
Three new short indices track the performance of a strategy that combines a treble to quintuple inverse exposure to the underlying index with the
Philippe Gougenheim, Head of Hedge Funds at Unigestion, says periods of sharp volatility in markets should lead to significant opportunities from Tactical Trading and Arbitrage strategies in the year ahead.
The financial downturn, subsequent deflationary climate coupled with historically rock bottom interest rates and an economic backdrop where 50% of global GDP is now being generated by emerging markets, has resulted in a unique trading environment.
Unigestion, the European privately owned asset manager with over USD 11 billion of assets under management, of which USD 3.6 billion is in its expanding funds of hedge funds investment activities, favours an
Cutler Capital Management has launched the Cutler Absolute Return Fund, a fund designed to provide institutional investors with positive returns regardless of market conditions or general market direction.
Geofrey K. Dancey and Arthur Raskin will co-manage the fund.
Dancey joined Cutler in 2003 as an analyst for the firm’s flagship fund. Raskin has over 30 years of experience trading convertibles, most recently for Cantor Fitzgerald.
They will employ a disciplined approach to tracking the convertible securities universe, allowing them to trade hedged positions that generate profits from cash flow and capital appreciation caused by security valuation changes, while controlling overall
Digital Vega has launched its FX option trading platform Medusa, which allows market participants to trade a range of FX option structures on prices from up to five relationship-based liquidity providers.
The first transactions were undertaken by Pareto Investment Management, a currency risk manager which is part of BNY Mellon Asset Management.
Medusa provides intuitive trading functionality via a simple GUI, which can operate in any browser or via API. Pricing is available in either premium or volatility terms, with or without delta hedge with real-time execution and confirmation.
The platform delivers reporting tools to both buy- and sell-side participants,
Eurex will launch single stock futures on leading Canadian companies on 25 November 2010.
The new listings reflect customer demand for expanded offerings in the rapidly growing equity derivatives segment.
The futures contracts will be based on shares of Bank of Montreal, BCE, Canadian Imperial Bank of Commerce and Sun Life Financial.
“Single stock futures have quickly become one of our fastest growing product segments. The contracts give customers greater flexibility in executing trading strategies in more than 750 names in Europe and internationally. The new Canadian listings will provide members with further trading opportunities in the North American market,”
Skill in adjusting exposures to various asset classes over time could be the most valuable part of the investment process for hedge funds and is likely to add more value than either selecting securities or maintaining a static equity exposure.
That is the key finding from a recent white paper from Mellon Capital Management, part of BNY Mellon Asset Management.
"Of the three components, adept asset allocation can be the most important," says Eric S. Goodbar, hedge fund strategist for Mellon Capital, who co-authored the paper with Karsten Jeske, a senior quantitative analyst at Mellon Capital. "Well-timed asset allocation decisions
Deutsche Bank has appointed Jay Fraser as a managing director and head of Autobahn equity execution and head of Autobahn equity sales in the Americas.
He is based in New York, reporting to Jose Marques, managing director and global head of equity electronic trading, and Brian Dugan, managing director and head of equity execution sales in the Americas.
Fraser joins the bank with over 19 years of financial technology and execution experience. Most recently, Fraser led institutional electronic execution sales and product development at Citadel. Prior to that, he was head of international sales at Investment Technology Group.
“We are
The Edhec-Risk Institute has released a publication which proposes a formal analysis of the optimal investment policy and risk management practices of sovereign wealth funds.
The publication, “Asset-Liability Management Decisions for Sovereign Wealth Funds,” contains the results of the first-year research work conducted at Edhec-Risk Institute within the Deutsche Bank research chair on asset-liability management techniques for sovereign wealth fund management.
Under the responsibility of Professor Lionel Martellini, the scientific director of Edhec-Risk Institute, this chair examines optimal allocation policies for sovereign wealth funds.
The publication proposes a formal analysis of the optimal investment policy and risk management practices of
Derivatives exchange Eurex says November has become the most successful month for the Eurex Kospi Product based on the Kospi 200 options available on the Korea Exchange with a record daily volume of 14,636 on 4 November.
The total number of traded contracts since their launch on 30 August 2010 is more than 87,000.
Volumes are expected to rise as KRX and Eurex further develop the after-hours market for the derivatives contract.
In addition to improved bid ask spreads in the order book, one driver of recent volume growth has been the use of Eurex’s block trading functionality.
In order
