Hedge funds posted strong gains in January as the resolution of the US fiscal cliff and investor optimism regarding the European banking and sovereign debt crisis drove gains across all hedge fund strategies to begin 2013, according to data released by HFR.
Illiquid positions are still common in the hedge funds space and can be useful for investors, according to Luke Ellis, chief executive and CIO of Financial Risk Management, a newly acquired part of Man Group.
John Godden has joined Sciens Fund of Funds Management Holdings to head up its managed account platform.
The practice of ‘sell discipline’ should be exactly that – a ‘discipline’ that investors follow strictly, even if it is painful – and even if in retrospect, it sometimes seems very painful.
Correlations between assets are around their highest point for at least 21 years, leading HSBC Alternative Investments to favour trading and global macro strategies in their hedge fund investments.
The hedge fund industry received mixed news today. One report found investors were pulling money out at the slowest rate in four years, but another revealed a sharp increase in the proportion of investors planning to cut their allocations.
Hedge fund managers might still be rich, but they suffered far more than their investors this year, as their total compensation fell by up to 30%.
Six more fund selectors have given their views on issues such as volatility, gold and correlation between assets affecting their choices.