Strategy US dollar now sole safe haven currency
The US dollar will increasingly benefit from the flight to quality as the appeal of other ‘safe haven’ currencies wanes, according to Jack McIntyre, portfolio manager at Brandywine Global, a subsidiary of Legg Mason.
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Strategy Management of hedge fund portfolios during crisis periods: the contribution of systematic overlays
The implementation of systematic overlays can be considered as an alternative to short-term rebalancing of hedge fund portfolios, or as an active component of alternative allocations.
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Strategy ESG and climate: When credit becomes sustainable
Those investors who have opted to incorporate ESG and climate issues into their portfolios will emerge from the crisis with even greater faith in their convictions and all the keener to take more action for the future. New investors will undoubtedly soon join the movement to (...)
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Strategy Financial markets in 2016: From the « 3D » to the « 3R », a shift in market paradigm – is it going to last?
Three forces collided at the turn of 2015-2016 to make markets extremely anxious. First, the Fed stuck to its promise to start a tightening cycle in 2015, with an in extremis hike in December 2015. The accompanying “dot plot” priced in four more hikes for (...)
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Strategy Risk factor investing explained
Risk factor investing is growing in popularity, but there’s a risk of getting lost in the factor “zoo”. In this Expert Opinion Thierry Roncalli, Head of Quantitative Research at Lyxor Asset Management, explains the concept of risk factors and distinguishes between facts and (...)
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Strategy Negative real rates likely to be a lasting feature in the Eurozone
According to René Defossez, Strategist at Natixis, it seems reasonable to assume that, to begin with, the European Central Bank will endeavour to keep the 10-year nominal swap as low as possible, which means that the breakeven swap will remain deep in negative territory. (...)
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Strategy Five reasons why special situations outlook is brightening
Special Situations strategies have been under pressure in 2020, both on their event and credit arbitrage books. Due to their long structural market beta, managers have underperformed early this year. They have retraced most but not all they have (...)
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Strategy The University of Texas Investment Management Co. to hold $1 billion in gold bars
The endowment, which oversees funds held by the University of Texas took delivery of almost $1 billion in gold bullion as a hedge against inflation
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Strategy Africa: Kenya’s Mobile Frontier
When we first started out in the emerging markets space more than two decades ago, we were in “frontier” territory as we entered markets such as Indonesia, Thailand, Turkey and Brazil that were previously closed to foreign (...)
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Strategy Is Low Volatility investing overcrowded?
One may reasonably argue that the recent flows into the Low Volatility strategies might affect their future performance because of the flow pressure on the prices of the companies that generally are selected by this investment approach. More recently, some market (...)
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Strategy Equities vs. high yield ? The answer becomes clearer…
During the initial phase of the turnaround in high-risk American assets, equities and high yield moved very similarly. In contrast, since mid-2012, equities have been accelerating more quickly, outpacing the credit market by a decent (...)
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Strategy Market setback provides opportunity
There has been a substantial increase in volatility over recent weeks caused by a number of different factors which have significantly impacted investor sentiment. European equities have declined by almost 15% since mid-September and we would like to highlight this setback (...)
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Strategy We have reduced our equity exposure through option strategies
Samir Saadi, Multi-Asset Portfolio Manager of CPR AM explains that he started the year heavily invested in equities to capture the good momentum of this beginning of the year. Convinced that the year would be special, CPR AM introduced optional hedging (...)
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Strategy Why the ‘value’ shift favours Europe
John Bennett, Head of European Equities, shares his outlook for 2017. He sees the potential for a continued rotation from a growth to a value-driven market as the key factor for European equity investors next year. While he maintains an overall bullish outlook, John (...)
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Strategy Beware... as risk perception is at a low ebb
While US equity markets are setting new all-time highs and inflows into emerging markets are picking up, spurred by the global improvement in the macroeconomic news flow, the Natixis risk perception index (RPI), covered at regular intervals in our publications, has declined (...)
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