Sunday, 23 November 2014
Last updated 1 day ago
Nov 29 2007 | 8:29am ET
Subprime short sellers and credit-focused hedge funds are not the only ones in the black this year: the Babylon Fund gained a further 2.7% last month pushing its year-to-date returns to 20.1%.
In October, the $13.8 million hedge fund, structured as an open-ended mutual fund that invests in large-cap Iraqi-dependant securities, placed the bulk of its bets on equities (71%) followed by bonds and deposits at 16% and 13%, respectively, according to its latest performance report. But despite its low correlation to Western markets, portfolio manager Björn Englund noted a peculiar phenomenon on the Iraq Stock Exchange last month.
“For example, in October, more than 60% of the equity trades made on the ISX were directed from abroad - as a couple of large-sized deals in banking stocks raised the overall volumes, contracts and values traded,” wrote Englund in his latest investor letter.
“Adding up to the present cautious ‘wait-and-see’-stance on the market floor have been factors such as lack of momentum, few company updates, and the flight of monies to the closest alternative asset class in NID: Govie T-bills yielding 18-22% in (hard) dinar [currency].”
Englund added that he believes this to be a short-term phenomenon and remains optimistic for the future of the Iraqi market and the ISX in terms of a push for more “longer opening hours, less daily hassle, a relatively more international mind-set and understanding among managers, healthier balance sheets, and even growing business confidence (the feel-good factor) - within most sectors and industries.”
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...