Emerging market hedge funds had a bad 2011. Markets placed a premium on liquidity vs quality and significant money flowed out of emerging markets as investors became more defensive and risk averse.
A drop in M&A volumes has hurt the performance of event driven equity hedge funds. Managers are optimistic 2012 will bring more deals and better returns, if macroeconomic conditions remain stable.
Isaac Souede, chief executive and chairman of fund of hedge funds group Permal, talks about the challenges facing the industry, the creation of alpha and how the industry needs innovation to achieve alpha....
Insurance Risk and BNY Mellon have conducted a survey to look at how insurance companies are preparing for the new regime and the opportunities and challenges that the changes will bring.
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Choosing a hedge fund strategy that will perform well in 2012 is difficult. With unprecedented ambiguity about what 2012 will bring, strategies need to cope with market volatility and uncertainty.
A convergence of many worrying events could plunge the global economy into recession and the world's populations into mass civil unrest. Leadership from the US may not be enough to avert disaster.
With plenty of catalysts, more dislocations and an improved competitive environment in the more liquid US market, the outlook for fixed income arbitrage hedge fund strategies appears promising in 2012
The Foreign Account Tax Compliance Act (Fatca) is drastically changing taxation for US citizens who invest in offshore hedge funds while the UK has also changed rules that impact hedge fund investment
Global macro hedge fund managers see opportunities in the G20 initiative to address global imbalances and stimulate economic growth and job creation. Emerging markets could provide the fuel for growth
Wildly fluctuating markets will challenge a wide variety of strategies in 2012 while emerging markets should offer opportunities. Hedge funds could offer investors strong risk adjusted performance.
As hedge fund performance is on the slide, fees have a bigger impact on returns. Investor dissatisfaction has returned, which may open the door to further negotiation on the standard the 2/20 fees.
This paper discusses a number of diverse considerations that risk managers need to incorporate into their thought processes and recurring procedures if they are to fulfill their role more effectively in the future