Low Vol, Divergences, A Dow Theory Signal And An Extension on the Dow -Hmmmm

From Richard Edwards of HED Capital Management   Dow Jones futures have made a daily-scale top extension (by Tuesday’s close). This comes immediately after the occurrence of ‘divergence’ between two Dow indices pointed out on Monday – a Dow Theory sell signal for equities. The Dow Jones Industrial Average itself has risen, ignoring lurching drops […] Read more »

Challenges YTD For Active Managers Says GAM

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From Global Asset Management   March concluded a volatile quarter across financial markets, as modest headline moves in many cases belied significant intra-quarter risk reversals and choppiness. The MSCI World index closed down 0.2% for the quarter against a very steep sell-off through 11 February, followed by a reversal and strong rally into the end […] Read more »

GAM’s Anthony Lawler – Hedge Fund Performance in 2016

From Global Asset Management   As year-end approaches, we look ahead to the outlook for active trading and hedge funds in 2016. The choppy waters of 2015 has proved challenging for active managers. Both equities and global bonds are down this year to date as measured by the MSCI World index and the Barclays Global […] Read more »

Some Dangerous Signals Appear in Financial Markets

By Stewart Richardson, Chief Investment Officer of RMG Wealth Management   We held our quarterly investment meeting last week (please let us know if you would like to receive a copy of the chart pack), and as you would expect, in both preparing for the meeting and in discussion during the meeting, we thrashed out […] Read more »

Get Ready to Buy Equities

By Klaudius Sobczyk, founder of Advanced Dynamic Asset Management   Now we are back in the volatile equity markets predicting the next big correction. As the following chart shows we had numerous of those predictions since the bull market started back in 2009. S&P 500 Index weekly chart               […] Read more »

The Environment Is Good For Systematic FX As Well As CTAs

By Douglas Garistina Chief Executive Officer of Sequoia Capital Fund Management   ‘What is a favourable environment for my strategy’ is a question that every portfolio manager must be able to understand and identify. The answers will, of course, depend on what type of strategy is being run, the markets the strategy focuses on, its […] Read more »

5y-10yr US Treasury Rates Need To Rise Further Say ECM

Alex Temple, Portfolio Manager at ECM Asset Management   To the casual observer, the US rates market has never had it so good. We have had Ben Bernanke and now Janet Yellen. We’ve had calendar guidance and forward guidance. We’ve had a buyer who telegraphs all purchases, publishes all holdings and has bought almost 40% […] Read more »

Why The Vast Majority of Hedge Funds Underperformed Indices

By Dr. Harold Ehrlich, CFA, Ehrlich Associates, LLC Sad to say, the vast majority of all hedge funds worldwide have well underperformed virtually every major stock or bond index for some four years now.  Adding insult to injury, investors in such funds have paid 2% management fees and 20% of (paltry) profits for the privilege […] Read more »