Quantitative Easing A Good Bet For Hedge Funds

Jan 2 2013 | 3:47pm 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

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of