Funds Management

The Fed Put is dead. Dip buying is a crutch. Private equity is a “junk bond in disguise”. And get ready for a lost decade for US equities says Rupal Bhansali, CIO of Ariel Investments.

It turns out that being a top performer can be tough as institutional clients pull money from favourites amidst broader equity de-risking.

“If you have style drift and you move into the latest hot thing, you’re gonna get whipsawed… That’s usually the death knell of a fund manager, that style drift.”

Chicago-based V-Square Quantitative Management has expanded its separately-managed account platform with the launch of its Global Equity ESG Materiality and Carbon Transition Indexed Strategy.

Any time you get great valuations, “it’s always messy”. But the indiscriminate sell-off in growth small caps presents the best buying opportunity since 2008. “Historically, people think of small cap growth as the wrong place to be in a rising interest rate environment – and it is, when people first start to think about a…

“These financial cleansings are really important to how you set up asset markets; they’re really important for how the Fed regains credibility; and they’re very important for curbing excessive risk-taking.”

“In general, it is a healthy environment for hedge funds, with allocation from institutional investors expected to rise. As markets brace for uncertainty, investors expect hedge funds to offer positive returns while reducing portfolio risk.”

The hunger for sustainable investing continues apace with Perennial winning a $100 million mandate from Mercer Investments for its Better Future small- and mid-cap strategy.

Australian investors are finally warming to Japanese equities after years of avoiding them for “good macro reasons.”

With investments in everything from music royalties to litigation financing, international private markets manager Northleaf is exploring a “robust pipeline” of deals Down Under.

There’s no end in sight for the pain in equity markets, and investors are rushing for the exit. But Australian equities offer a bright spot.

While value has been the winner of the recent market rout and growth the loser, a zealous adherence to either style could see managers burned by economic downturn.