Hedge funds have long been fascinated with Japan’s large and growing public debt burden but shorting the country continues to be a losing proposition. Any Japan trade needs to be tightly hedged.
Investors and hedge fund managers are trying to find effective and cost-efficient ways to tackle tail risk. One way to hedge this risk is through long-dated options, because they offer convexity.
Institutional investors tend to allocate to larger hedge funds even though research shows smaller funds give better returns. Other facts like operational risk management could favour large funds.
More Features/Hedge Funds articles
Small to mid-sized hedge funds and funds of hedge funds in general continue to face obstacles to raising capital. Increased interest by institutional investors focuses mainly on larger fund managers.
Cat bonds can offer high returns and low correlation to financial markets but few hedge funds are active in the market despite increased interest in this asset class over the last 18 months.
Institutional investors need to check regularly the operational risk management of hedge fund management companies as well as their service providers to ensure the most protection for themselves.
Balancing performance against what are the two hardest components within a hedge fund to define and judge – volatility and risk – is not an easy task. Assessment needs to include a variety of metrics.
Investors are attracted to the strong returns and relatively low volatility of multi-strategy hedge funds. However, the complexity of the multi-strategy model means manager selection is a challenge.
Lyxor Asset Management wants to be seen as a global asset manager offering a range of products around the world. Its new CEO de Dinechin has an ambitious plan to develop its hedge funds business.
Institutional investors and regulators are agitating for stronger of hedge fund corporate governance, with majority independent boards with the expertise and time to oversee activities.
In response to industry fears of a collateral crunch, regulators have revised the proposed rules on margining for uncleared over-the-counter (OTC) derivatives.You can find out more by downloading this white paper here.
Hong Kong, 1st - 31st Dec 2014
UK, 18th Mar 2015
Australia, 12th - 13th Aug 2014
Australia, 14th Aug 2014
USA, 20th - 21st Aug 2014