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.