Man Plans Black Box Sovereign Debt Fund

Apr 20 2012 | 2:24am ET

The Man Group's year-old Systematic Strategies unit is readying a quantitative sovereign debt hedge fund.

The Man Systematic Fixed Income Fund will be Systematic Strategies' fourth—a quantitative commodities fund was launched last month. The unit is still working on the strategy and Man declined to project a launch date, Reuters reports.

The new fund will seek out dislocations in government bond markets, hoping to attract investors who agree with MSS's bleak outlook for the asset class.

"Traditional fixed-income investing [is] unattractive," MSS wrote in a note. Among the problems are "yields close to zero percent, increased credit risk in many government bonds," and "little upside [and] big downside of being long bonds in [the] current environment."

But, MSS says, "market inefficiencies [are] likely to prevail in fixed-income markets, creating investment opportunities."


In Depth

Q&A: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of