Thursday, 29 January 2015
Last updated 5 min ago
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."
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…