{"id":78085,"date":"2019-03-07T01:30:00","date_gmt":"2019-03-07T00:30:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/opinion\/hedge-fund-briefs-a-rising-tide-lifts-most-boats\/"},"modified":"2019-03-07T01:30:00","modified_gmt":"2019-03-07T00:30:00","slug":"hedge-fund-briefs-a-rising-tide-lifts-most-boats","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/opinion\/hedge-fund-briefs-a-rising-tide-lifts-most-boats\/","title":{"rendered":"Hedge fund briefs : A rising tide lifts most boats"},"content":{"rendered":"<p>In recent weeks, market conditions switched swiftly from<br \/>\npanic mode to exuberance mode. Risk assets bottomed out<br \/>\nat the turn of the year, and since then, global equities were<br \/>\nup by 15%. Interestingly, the rebound in equities did not<br \/>\nprevent bond markets to post additional gains in early 2019. <\/p>\n<p>In the meantime, hedge fund strategies experienced a<br \/>\nsymmetric move. The strategies that suffered in December<br \/>\nsuch as L\/S Equity and Relative Value Arbitrage rebounded<br \/>\nrecently, while those resilient at the end of 2018, such as<br \/>\nCTAs, lagged behind so far in Q1 due to their short equity<br \/>\npositions.<br \/>\n<quote>In terms of positioning, L\/S Credit strategies<br \/>\nwere among the very few to take advantage of deteriorated<br \/>\nmarket conditions to add risk in late December.<\/quote><\/p>\n<p>Concurrently, CTAs have dramatically increased their long<br \/>\nfixed income positions over the last three months and we are concerned about the impact a bond trend<br \/>\nreversal might have on their performance going forward.<\/p>\n<p><strong>What does this mean in terms of strategic allocation?<\/strong> First, we prefer strategies that were relatively resilient<br \/>\nduring the downturn and didn\u2019t suffer during the rebound. This includes Merger Arbitrage and Fixed Income<br \/>\nArbitrage and to a lesser extent L\/S Equity Market Neutral and Global Macro. Second, we stay cautious on<br \/>\nL\/S Equity strategies with an elevated market exposure and prefer flexible L\/S strategies that can adjust<br \/>\ntheir beta swiftly. Third, the outlook on EM assets has improved since the Fed has turned less hawkish. EMfocused Global Macro strategies could benefit from it.<\/p>\n<p><quote>Finally, we continue to believe that alternative strategies are attractive relative to traditional assets at this<br \/>\nstage of the business cycle. However, caution is required on strategies with a long equity market bias and<br \/>\nselectivity is key from both a top-down and bottom-up perspective.<\/quote><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hedge fund strategies experienced a<br \/>\nsymmetric move. The strategies that suffered in December<br \/>\nsuch as L\/S Equity and Relative Value Arbitrage rebounded<br \/>\nrecently, while those resilient at the end of 2018, such as<br \/>\nCTAs, lagged behind so far in Q1 due to their short equity<br \/>\npositions.<\/p>\n","protected":false},"author":1,"featured_media":78083,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1480],"tags":[1687,1743,1655,1723,1690,1651,2087,2243,2068],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/78085"}],"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=78085"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/78085\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/78083"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=78085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=78085"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=78085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}