Equity Hedge Yet to De-Gross Notes Man Group’s FRM

From FRM Investment Management   Market Background China’s financial troubles and the Fed’s zeroing in on lift off for the next interest rate cycle have combined, as we thought they might, to place deflation at the forefront of investor concerns. Moreover, it is clear that the problems emanating from China, other emerging markets and many […] Read more »

Nearly All HF Strategies Down in June

By Financial Risk Management (FRM is part of Man Group)   MARKETS In the US, we remain cautious of equity valuations. Earnings growth is weakening and some data shows it becoming negative. Data also shows institutions have been net sellers of stock for the past four quarters and only non-financials have been net buyers over […] Read more »

Man’s 2014 Results Benefit from Diversification of Earnings and Cost Cuts

From Fitch Ratings Man Group plc’s (Man) solid performance in 2014 shows that   recent acquisitions have increased the diversification of Man’s  earnings and distribution base in a still challenging environment for alternative investment fund management, Last week’s announcement of the planned acquisition of NewSmith LLP, a small London-based equity investment manager, is likely to reinforce […] Read more »

FRM Commentary On Long/Short Managers

From FRM Investment Management Despite January being a negative month for equity indices Equity Long-Short managers benefited from single stock dispersion to end the month roughly flat; European managers finished the month marginally positive, while the US was flat in aggregate. In Europe, managers suffered in the sharp sell offs, which were highly correlated and  […] Read more »

Fundamental Commodity and Stat Arb Strategies Preferred for 2014 by FRM

From FRM Investment Management Hedge funds had a small positive month to end 2013. The HFRX Global Hedge Fund Index recorded a 56bps gain, taking performance for the year to positive 6.72%. Within this there was some significant dispersion in manager returns, even within strategies, as the month contained some sizeable asset price movements. Equity […] Read more »

Japanese Reflation Trade Pays Off For Macro Managers In November

From FRM Investment Management   With many of this year’s themes continuing, as discussed above, November was a positive month for hedge funds. The majority of strategies were positive over the month, with very few outliers on either the positive or negative side (given adjustments for volatility). The HFRX Global Hedge Fund Index returned 0.55%. […] Read more »

FRM See A Strong CTA Bounce Back As Unlikley In Monthly View

From FRM Investment Management The HFRX Global Hedge Fund Index was positive in September, +0.96%, the majority of strategies ending the month with positive returns. Equity Long-Short managers were amongst the best performing strategies, benefitting from the equity market rally across regions in the first half of the month. Given the large moves seen in […] Read more »

Fund of Hedge Fund Takeovers – Bursting a Dam or Turning a Tap?

FOF Takeovers Word Cloud 2

By Simon Kerr, Principal, Enhance Consulting and Publisher of “Hedge Fund Insight”   For seven or eight years we have been told that a wave of M&A was about to roll over the fund of hedge funds sector. There have been different reasons over that period, they all pointed towards consolidation, but somehow it has […] Read more »

FRM’s Current Preferred Hedge Fund Strategies

In its latest outlook, FRM, Man Group’s $19.5 billion fund of hedge funds and managed accounts business,  identifies three potential sources of return for hedge funds. The preferences that FRM expresses are based on a specific market outlook.  Europe’s largest independent FoF has an outlook on markets that remains broadly unchanged:  FRM thinks that the […] Read more »

Early View of Last Month from FRM

Fund of funds manager Financial Risk Management (FRM) produces a monthly “Early View” reviewing the hedge fund and market themes and sector performance for the previous month.  The highlights for April 2012 were: “We had been concerned that the hedge funds with low market beta were too slow to rebuild risk through the first three months […] Read more »