Saturday, 28 February 2015
Last updated 10 hours ago
Feb 29 2012 | 8:55am ET
Morten Spenner, CEO of the US$2.5 billion hedge fund of funds International Asset Management, expects manager selection to be one of the keys to “differentiated” performance in 2012.
Spenner says that while developments in Europe have the potential to “meaningfully impact the direction of markets,” IAM expects continued uncertainty and associated high volatility in underlying markets. In this environment, he says, diversification, “sought across strategies as differentiated performance” is more likely to be driven by manager selection.
In its Q1 outlook, the London-based firm’s says high volatility and fixed-income market movements are providing opportunities for managers focused on curve trading, auctions and future levels of interest rates in government bond markets.
In the credit sector, IAM favors managers with fundamental credit and balance sheet analysis skills and technical trading experience.
In the event driven area, Spenner says specialist managers focused on niche areas of the credit markets have the potential to provide high returns. “RMBS specialists are expected to benefit from low valuations, double-digit running yields, cautious default assumptions, supportive housing data and federal policy. They will also have the potential for capital appreciation to enhance strong returns.”
As for long/short equity, IAM believes specialist areas of focus and “idiosyncratically driven positions” are more likely to provide higher returns.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…