Guardian – Visitors to Pfäffikon, a small Swiss town on the shores of lake Zurich, would never suspect that they were in a hedge fund hot spot. But many have followed in the wake of London-based Man Group, the world’s largest publicly traded hedge fund, which set up a base in the Swiss mountains several years ago. They are coming from the UK, seeking lower taxes, less regulation and a friendly welcome, far from public anger about bonuses.

“I moved when it became obvious that government spending was getting silly. I knew the culture would translate into higher taxes and more problems,” says the boss of a fund with more than $500m under management, who recently moved from London to Pfäffikon.

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Tags: government spending, hedge fund, hedge funds, lower taxes, man-group

New York (HedgeCo.net) – There was good economic news in August, specifically housing and manufacturing data, according to hedge fund research specialist Hennessee Group.

“Government spending continues to drive demand, while the private sector has been largely absent. This dynamic is not sustainable,” commented Charles Gradante, Co-Founder of Hennessee Group. “In addition, equity markets are no longer undervalued. With September being one of the worst months historically, we are cautious of a pull back in the markets.”

The Hennessee Hedge Fund Index advanced +1.85% in August (+17.30% YTD), while the S&P 500 increased +3.36% (+12.99% YTD), the Dow Jones Industrial Average increased +3.54% (+8.20% YTD), and the NASDAQ Composite Index advanced +1.54% (+27.40% YTD). The Barclays Aggregate Bond Index advanced +1.04% (+4.62% YTD).

“Hedge funds continued to lag the surging equity markets, as we would expect given their short portfolios and hedges,” said Lee Hennessee, Managing Principal of Hennessee Group. “Managers have opened up their exposures to benefit from the market rally. However, given the uncertainty around the economy, most managers are looking to generate gains due to stock selection, rather than beta exposure as there is potential for a correction.”

Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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Tags: funds hedge, government spending, group managers, hedge funds, hedge-fund-index, hennessee hedge fund

Reuters – Asian stocks rose to a two-month high on Monday, with expectations for a global economic recovery later this year on the back of massive government spending prompting investors to wade back into riskier assets.

Regional equities have risen for six consecutive days, bolstered by expectations big government stimulus spending packages in coming weeks will revive growth and banks will eventually lend to each other again.

Major European stocks were expected to open as much as 0.4 percent higher, according to financial bookmakers, on hopes companies will benefit from the collective efforts of central banks and other policymakers.

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Tags: asian stocks, assets, bookmakers, central banks, collective efforts, consecutive days, economic recovery, european stocks, government spending, investors, massive government, policymakers, reuters, stimulus