Crimean Troubles Worry Investors

Mar 18 2014 | 11:08am ET

Russia today moved formally to annex the Crimea—and hedge fund managers are worried.

Bank of America Merrill Lynch’s March Fund Manager Survey shows 81% fear geopolitical risk. The poll was taken as matters between the Ukraine and Russia continued to deteriorate this month, culminating on Sunday with the Crimean referendum to leave the Ukraine and join Russia, and Russian President Vladimir Putin’s signing of an annexation treaty today. The conflict has battered Russian and European stocks, and the U.S. and European Union leaders have promised increasing sanctions against Russia.

Fund managers’ stock holdings have dropped to a 15-month low, according to the BofA survey, and have also cut leverage. The number of investors identifying geopolitical crisis as the chief tail risk more than doubled, from 12% last month to 27% in March.

“Responding at a point of growing tension in Ukraine, 81% of investors said they see geopolitical risk posing a threat to financial markets stability—more than four times the reading one month ago,” BofA’s Michael Hartnett said.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.