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Reuters – The heat is on hedge funds to outperform markets and prove their worth to skeptical investors, and to do so requires strategies based on riding out spikes in volatility, seeking liquidity and deft trading.
Returns this year will, of course, not be what they were in the over-leveraged days before the financial crisis, but convictions on one’s investment strategies and asset allocation will help the best and brightest funds survive, industry experts told the Reuters Private Equity and Hedge Funds Summit.
The strategies expected to do well include commodity trading advisors’ managed futures accounts because they can perform well in times of heightened volatility. Funds that focus on macroeconomic developments were also seen outperforming other strategies given the tremendous changes in policy affecting markets globally and risks of both deflation and inflation.
Seattle Times – With their investment records in tatters, some mutual-fund companies are pinning their hopes on products with an old-fashioned ambition: delivering steady returns.
Many of these funds are doing just that, while others are falling short of the mark.
Putnam Investments recently introduced four "absolute return" funds that use such strategies as buying foreign securities or bonds to smooth out their performance and aim to earn investors 1 to 7 percent a year above inflation.
Asia Times Online – During the end of the 1970s into the 1980s, British Conservative prime minister Margaret Thatcher and the City of London financial interests who backed her introduced wholesale measures of privatization, state budget cuts, moves against labor and deregulation of the financial markets.
They did so in parallel with similar moves in the US initiated by advisers around Reagan. The claim was that hard medicine was needed to curb inflation and that the bloated state bureaucracy was a central problem.
Reuters – Officials from the Federal Reserve and the European Central Bank on Sunday vowed to fight the damaging effects of deflation as the global economy suffers a deep and lengthy recession.
In just a few months, central bankers’ concerns have flipped from fighting inflation to staving off possible deflation — a condition in which falling prices cause consumers and businesses to delay purchases, resulting in an even steeper economic downturn.
Both Janet Yellen, president of the San Francisco Federal Reserve Bank, and Lucas Papademos, vice president of the ECB, highlighted the risks of deflation at the annual meeting of the American Economics Association.
West Palm Beach (HedgeCo.net) – Alternative investment platform, Altegris Investments, has plans to expand their research team under the leadership of Mr. Allen Cheng, an accomplished hedge fund investment professional with extensive industry experience.
Cheng joins Altegris as Managing Director, Research and Investments, and will be a member of the Altegris Investment Committee, with responsibility for evaluating investment strategy and completing product review for the Altegris platform of alternative investments.
"Allen’s breadth of experience in alternative investments, with both major financial institutions as well as private investment firms, complements the deep knowledge base of our research team," said Jon Sundt, President of Altegris Investments. "We are dedicated to maintaining a world-class research team, under Allen’s expert leadership, to accomplish our mission of providing high quality alternative investments to wealth managers and high net worth investors."
Cheng joins Altegris from his recent role as Managing Director, Head of Fund of Funds Portfolio Management at Bank of America’s Alternative Investment Group. He has significant experience in the alternative investment industry, particularly in the area of identifying, selecting, and monitoring hedge fund managers across multiple investment disciplines.
"Altegris offers clients a unique, open-architecture platform of alternative investments, supported by extensive review and ongoing monitoring," said Cheng. "I am energized by the opportunity to join this team specializing in alternative investments and to expand our in-depth research capabilities."
The Altegris team finds, selects and negotiates capacity with selected hedge funds, managed futures funds, and other alternative investments. Currently, investors have allocated more than $2.4 billion in trading level to alternative investments available through the Altegris platform. The Altegris Group of Companies includes Altegris Investments, APM Funds, and other affiliates.
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