Friday, 22 August 2014
Last updated 11 hours 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.”
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note