{"id":78946,"date":"2019-04-02T01:00:00","date_gmt":"2019-04-01T23:00:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/strategie\/implications-for-hedge-funds-of-the-renewed-quest-for-yields\/"},"modified":"2019-04-02T01:00:00","modified_gmt":"2019-04-01T23:00:00","slug":"implications-for-hedge-funds-of-the-renewed-quest-for-yields","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/strategie\/implications-for-hedge-funds-of-the-renewed-quest-for-yields\/","title":{"rendered":"Implications for hedge funds of the renewed quest for yields"},"content":{"rendered":"<p>The recent turnaround in the global monetary<br \/>\nstance, led by the Fed and more recently by the<br \/>\nECB, has further fueled the fixed income and credit<br \/>\nmarket rally. 10-year bond yields in Germany are<br \/>\nback to levels last seen in 2016, when deflation was<br \/>\na serious threat to economic activity. Meanwhile,<br \/>\nHigh Yield credit spreads in Euro and U.S. Dollar<br \/>\ntightened significantly in Q1, to levels close to<br \/>\n400bps from 540bps at the turn of the year. In other words, renewed monetary accommodation is translating<br \/>\ninto a significant compression of risk premia across asset classes. As an investment theme, the quest for<br \/>\nyield is back and likely to stay for some time. <\/p>\n<p>In this context, most hedge fund strategies experienced positive returns so far in Q1. According to available<br \/>\nbenchmarks such as the HFRI Liquid alternative UCITs index and our peer groups, L\/S Credit, L\/S Equity<br \/>\nand Global Macro strategies outperformed. In particular, EM-focused Global Macro and Special Situation<br \/>\nstrategies benefitted the most from the renewed dovish stance of the Fed.<br \/>\nConcurrently, CTAs underperformed and stand in negative territory year-to-date due to their short equity<br \/>\npositioning at the start of the year. But such losses were partially offset by gains in their fixed income and<br \/>\ncurrency buckets.<\/p>\n<p><quote>Going forward, we maintain a preference for Event-Driven and Fixed-Income (Arbitrage) strategies<br \/>\ncompared to L\/S Equity and within the Global Macro space we still have a preference for EM-focused<br \/>\nstrategies.<\/quote><br \/>\n Finally, Our stance on CTAs stays neutral, but we are observing green shoots of recovery. In<br \/>\nMarch, the strategy is on track to deliver its best monthly performance since August 2018.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the first quarter of 2019 is coming to an end, we<br \/>\ndiscuss recent hedge fund performance and our<br \/>\nmidterm outlook for hedge fund strategies.<\/p>\n","protected":false},"author":1,"featured_media":78944,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1483],"tags":[1687,1743,1655,1723,1690,1651,1807,2243,2068,1672],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/78946"}],"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=78946"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/78946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/78944"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=78946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=78946"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=78946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}