{"id":58718,"date":"2016-11-29T00:53:22","date_gmt":"2016-11-28T23:53:22","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/event-driven-moves-higher-on-trumps-market-rally\/"},"modified":"2019-12-31T01:18:55","modified_gmt":"2019-12-31T00:18:55","slug":"event-driven-moves-higher-on-trumps-market-rally","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/event-driven-moves-higher-on-trumps-market-rally\/","title":{"rendered":"Event Driven Moves Higher On Trump\u2019s Market Rally"},"content":{"rendered":"<p>This has led to growing divergence between Treasuries and Bunds across the yield curve and further depreciation of the EUR vs. the USD.<\/p>\n<p>This environment has been supportive for hedge funds. Most strategies delivered positive<br \/>\nreturns last week as risk assets moved higher on Trump\u2019s market rally. Event Driven<br \/>\noutperformed as spreads tightened for deals such as Time Warner\/AT&#038;T, Monsanto\/Bayer,<br \/>\nLinkedIn\/Microsoft and Alere\/Abbott. Such deals rank well in Merger Arbitrage portfolios.<br \/>\nOn the Special Situations segment, positive developments in Marathon Petroleum and<br \/>\nConagra Brands contributed to returns.<\/p>\n<p>Global Macro and L\/S Equity strategies also delivered solid returns last week. The former is<br \/>\nwell positioned to benefit from the divergence between Europe and the U.S. discussed<br \/>\nabove. With regards to L\/S Equity, Long Biased managers outperformed other sub<br \/>\nstrategies. The best performer was a value L\/S manager (up 3% last week, 13% YTD). At<br \/>\nthe other end of the spectrum, CTAs were flat and continued to underperform.<\/p>\n<p><quote>As part of the new market regime that has started to take shape after the election of Donald<br \/>\nTrump, we have proceeded with some changes in our investment recommendations. We<br \/>\nhave downgraded Short Term CTAs to make room for an upgrade in L\/S Equity Long Bias.<\/quote><\/p>\n<p>We now keep both Short and Long Term CTAs at neutral. Meanwhile, we find Market<br \/>\nNeutral L\/S Equity to be less appealing while the opportunity set for Special Situations has<br \/>\nimproved. The likelihood that U.S. corporates will repatriate their cash held overseas under<br \/>\nthe new administration may translate into shareholder friendly policies (dividend distribution<br \/>\nor share buybacks) or more mergers and acquisitions. This creates opportunities for<br \/>\nSpecial Situations managers which we have upgraded at slight overweight.<\/p>\n<p><a href=\"http:\/\/www.next-finance.net\/http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks.jpg\"><img loading=\"lazy\" class=\" aligncenter size-full wp-image-58716\" src=\"IMG\/jpg\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks.jpg\" alt=\"l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks.jpg\" align=\"center\" width=\"803\" height=\"354\" \/><\/a><div id='gallery-1' class='gallery galleryid-58718 gallery-columns-3 gallery-size-herald-lay-c1'><figure class='gallery-item'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a class=\"herald-popup\" href='http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks.jpg'><img width=\"470\" height=\"313\" src=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks-470x313.jpg\" class=\"attachment-herald-lay-c1 size-herald-lay-c1\" alt=\"\" loading=\"lazy\" srcset=\"http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks-470x313.jpg 470w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks-300x200.jpg 300w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks-414x276.jpg 414w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks-130x86.jpg 130w, http:\/\/beta.next-finance.net\/wp-content\/uploads\/2016\/11\/l-s_equity_and_special_situations_seek_upside_in_cyclical_stocks-187x124.jpg 187w\" sizes=\"(max-width: 470px) 100vw, 470px\" \/><\/a>\n\t\t\t<\/div><\/figure>\n\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>With U.S. data releases in the black and the Fed ready to act, Treasury yields kept creeping higher over the recent weeks. Meanwhile, the ECB recently signaled it may extend its bond buying program at the current \u20ac 80bn per month beyond March 2017 (the final decision is likely to be announced on December 8th).<\/p>\n","protected":false},"author":1,"featured_media":58716,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1687,1655,1723,1690,1651,1437,2007,2243,1672],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/58718"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=58718"}],"version-history":[{"count":1,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/58718\/revisions"}],"predecessor-version":[{"id":58719,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/58718\/revisions\/58719"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/58716"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=58718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=58718"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=58718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}