Quantitative Easing A Good Bet For Hedge Funds

Jan 2 2013 | 4:47pm ET

Quantitative easing made it easier indeed for many British hedge funds to post big gains last year.

Bets that government-backed liquidity programs would boost markets paid off in a big way for the likes of CQS and Odey Asset Management. The former rose 32% through November and the latter 26.6%, The Telegraph reports.

"The masters of equity and credit trading strategies have done their homework in 2012 and reaped benefits turbocharged by an ocean of government-sponsored liquidity," Newscape Capital Group's Philippe Bonnefoy told the newspaper.

Another hedge fund expert added, "While economic fundamentals have been poor during 2012, with sluggish or negative growth and depressed confidence, the use of QE has pumped tons of money into the system which has to go somewhere, so it usually winds up in equities or bonds."

In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...


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

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...


FINalternatives Trending

From the current issue of