Sunday, 28 December 2014
Last updated 1 hour ago
Nov 12 2013 | 10:47am ET
Rhodium Capital, a $30 million hedge fund start-up launched by Bank of America alumnus Iftikhar Ali, is putting its faith in corporate bonds.
Ali, who launched the fund with CEO Jeffrey Tirman and serves as chief investment officer himself, told Reuters he expected November and December to be calmer months for bonds, after yields were pushed up (and prices down) by recent political events in the U.S., including questions surrounding the Fed's bond-buying stimulus program and the battle over the debt-ceiling.
"The stormy summer market caused a correction but now the big scares are out of the way so we see further spread compression from here," Ali, who has produced an average annual return of 16% since 2005, told Reuters.
Ali believes the government may not begin cutting back on its bond purchases for some time to come:
"We need consecutive quarters of robust data and recovery so far has been very delicate. Yellen doesn't want to come in and immediately cause instability. I think it will be pushed back even further," he told Reuters.
Rhodium, which can be up to 50% net long or 50% net short, has started out net long, toward the high-end of its range.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.