Investing and Global Finance News

Author Archives: Tom Sanderson

Are Hedge Funds Still Profitable?

While there have unquestionably been some negative yields indicating poor hedge fund performance, the word on the street is that some of this is, “misleading.” According to Legal & General Investment Management head of asset allocation, Emiel van den Heiligenberg: “There are ways of making money from it.” 

The question is, how?  Outside of Europe, hedge fund managers can purchase Europe’s negative-yielding government debt.  These funds are based on relative short term interest rate levels which are way higher in America than in the Eurozone.  As such, dollar-based investors are indirectly paid to ensure options are available for their euros to be transformed back to dollars.

It was also  noted by HedgeWeek that there is continued performance growth in the second half of 2019.  July ended with a 7.68 per cent year-to-date return and positive returns in six of the past seven months. According to BarclayHedge president, Sol Waksman:

“Anticipation of the first interest rate cut by the Fed in more than ten years propelled the S&P 500 and the Nasdaq to all-time highs in July. Concerns over the economic implications of a no-deal Brexit and slowing growth in Europe helped push German 10-year bond yields to new lows. The equity and interest rate sectors provided enough of a tailwind for a positive month.”

Woodline Partners

Woodline Partners has just started trading.  For 2019 to date, it is the largest hedge fund startup.  Debuting with $2billion in investor commitments, it is headed by Michael Rockefeller and Karl Kroeker, both former traders of Citadel. Ilana Weinstein, founder and CEO of IDW Group said that this amount is very “significant” for a startup… Continue Reading

Brexit and the Hedge Fund Industry

Brexit is apparently impacting everything and everyone.  Are they in? Are they out?  Every day it’s a different story and the British pound has recently plummeted to a two-year low as a result of this hokey-pokey dance. According to a recent news article: “Sterling plunged to 28-month lows and headed for its biggest daily fall… Continue Reading

China’s Strategic Impact on Global Economics

China has “opened up” to the rest of the world.  This has “ushered in a new wave…particularly visible in the newly-released Catalogue of Industries for Encouraged Foreign Investment 2019 and the 2019 Negative Lists.” This was recognized at the 13th Summer Davos Forum as well as the recent (Japan-hosted) G-20 summit.  The “opening up” movement… Continue Reading

Alternative Investments: Why?

What do investment industry experts when they add the adjective alternative to their investments?  According to CEO of the Chartered Alternative Investment Analyst Association (CAIAA) William J. Kelly, regular investments are those made in cash, bonds and stocks etc. Alternative investments are ones in intellectual property, land, private equity and real estate.  Toward the end… Continue Reading

GDP and Public Wealth

According to a recent article put out in the IMF Blog:  “advanced economies have larger balance sheets compared to emerging markets and low-income developing countries. This reflects the size of their public sectors, which generally provide more infrastructure and services. But advanced economies also have larger liabilities and, on average, lower net worth.” So what… Continue Reading

Equity Investment Firms: Recent Awards

Awards presented to private equity investment firms are given for a variety of reasons, including recognition of excellence in the establishment, growth and management of a new or existing acquisition, a testament to consistent performance and a high chance of continued stability.   They are selected via senior, experienced members of the industry.  Here we take… Continue Reading

Hedge Fund Fluctuations

Hedge funds are a very fluid industry.  As Alan Greenspan once said: “One of the problems with hedge funds is that they are changing so rapidly. If you have the balance sheet that closed business last night, by 11 A.M. this morning, that won’t tell you very much about what they’re doing.” In this article… Continue Reading