As the graph above illustrates, a serious correlation between the US$ and the US equity markets has developed over the last 9+ years. This correlation is strong and for policy makers in Washington, rather disturbing. The relationship is as follows: If the US$ loses value the equity markets have rallied and if the US$ strengthens equity markets have sold off. […]
While the debate rages on as to whether the economy is, indeed, displaying evidence of “green shoots,” numerous hedge fund firms appear to be taking matters into their own hands, repositioning themselves to benefit from any signs of improving investor sentiment. In particular, several firms have gone on recent hiring sprees in an attempt to lock in the best and […]
The American people are receiving a true education from our president regarding the various uses of the baffling word that is ‘Change‘. First, during Obama’s campaign for presidency, we were led to believe that change meant ‘out with the old, in with the new’. Old representing all that was bad and new all that was good. Then, after obtaining the […]
Despite a series of ongoing challenges, a variety of environmental effects have recently swung in the activists’ favor. First, as mentioned in my previous blog post, stock prices have taken a tremendous hit over the past year. Yet while the news media tend to tout the market’s recent resurgence, in reality the S&P 500 still remains more than 25% below […]
Reuters reports British pension funds are joining the battle against European Union’s proposed regulations on the hedge fund and alternative investment universe. The National Association of Pension Funds (NAPF) and a director at Hermes, manager of the largest corporate scheme in Britain, said the rules could restrict investment choices and returns, further affecting the ability of pension funds to provide ample […]
The global hedge fund industry association, Alternative Investment Management Association, (AIMA) said in a statement that they welcome the impact assessment of the European Commission’s draft directive on Alternative Investment Fund Managers commissioned by the UK’s Financial Services Authority. The FSA has commissioned CRA International to undertake a CBA (cost benefit analysis) of the proposed directive. Some of the main […]
Philippa Aylmer, contributing editor to The Hedge Fund Journal, writes, “If the last decade could be described as the biggest credit party ever, then the end of 2008 brought the mother of all hangovers. The hedge fund industry took a beating along with much else in the financial services sector and funds of hedge funds felt their share of the […]
The stories below offer further concrete evidence that major issues persist in the US economy. When making investment decisions, we prefer to place more weight behind this type of data than “leading” economic indicators the government likes to laud and CNBC types love to regurgitate. The rally in the US$ last week stalled this week right at the resistance of […]
Movements in equity, credit and commodity markets all contributed to positive performance for hedge funds in July, according to the Credit Suisse/Tremont hedge fund index. Capitalizing on a broad set of opportunities across equity, credit, commodity and currency markets, directional, relative value and global macro strategies were the strongest performers for the month. Convertible Arbitrage added a seventh month of […]