Three years ago we launched our first Ucits Liquid Alternatives fund in Europe, the Franklin K2 Alternatives Strategies Fund. At the time, some would have argued that the macroeconomic conditions were not favorable for certain hedge fund strategies. We agree they haven’t for a number of years, but now we think this may be changing. […]
As interest rates in developed markets begin to rise, as we expect them to in the coming six months, we anticipate what has been an eight-year quantitative easing-driven tailwind to diminish. With a rise in interest rates, fundamentally weak companies typically face increased pressure, as they are no longer able to potentially take advantage of […]
Based on the divergence in growth prospects across regions and a decoupling of central bank policies, we expect equity markets to face increased volatility in 2016. We believe a corresponding pickup in dispersion, which has historically been correlated with alpha generation, or excess manager return relative to the benchmark, could benefit long short equity strategies. […]
Brooks Ritchey, senior managing director at K2 Advisors, Franklin Templeton Solutions, harkens back to a popular 1970s tune as he explores these and other questions. Periodically, when commuting home in the evenings, I enjoy listening to a bit of music. The songs that resonate with me most are those typically associated with meaningful memories or […]
Pressure for consolidation in the $600bn fund of hedge funds industry is mounting, leaving managers who run less than about $3bn to face a struggle for survival amid shrinking assets and rising costs.