Funds Management

A host of things investors have benefitted from in recent decades are likely to turn on a multi-year view. Even the much vaunted alternatives will find it harder to generate alpha.

Portfolios built along factor lines may be better-placed to withstand the grinding effects of high inflation, a recent study probing almost 150 years of market returns has found.

The smart money in the alternatives space is likely to flow into CTAs, or trend-following hedge funds, and global macro strategies, according to an annual survey by capital introduction specialists Agecroft Partners LLC.

The former CIO of Crestone Wealth Management has won seed capital from a number of family offices and individuals for a new global multi-strategy hedge fund.

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.