- Advertisement -
- Advertisement -

Related

Hedge Funds Anticipating French Elections Differently

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – Hedge funds are displaying incongruent stances ahead of the first round of the French presidential elections in two weeks, according to Lyxor’s latest weekly brief. Following the electoral surprises of 2016 and an unpredictable race that has just been shaken up by an insurgent challenge from the far left, strategies are having different reactions.

Global Macro funds are taking a cautious approach, according to Lyxor, de-risking portfolios and favouring relative value trades, their total net exposure (USD) to equities and FX lying below the 20% mark. Event-driven funds have marginally increased European exposures, albeit that portfolio additions have been company-specific, including merger, post-merger and recapitalisation scenarios.

As for equity funds, non-European L/S funds have been steadily increasing allocations to Europe over the past half-year, seemingly oblivious to poll trends and playing to the overall European recovery. European L/S funds are doing the same, but with the addition of protective layers. These have raised net exposure since the beginning of the year, favouring cyclical sectors such as industrials, tech and materials and small caps. They have, however, also reduced financials and EU-domestic stocks since the election season kicked in, and have reinforced defensive sectors and repositioned towards non-EU/EMU European markets. Amid slightly negative global equities last week, L/S Equity funds succeeded in extracting excess returns through relative trades in Europe.

CTAs appear to the most aggressively exposed to Europe, according to Lyxor, with long equities accounting for the bulk of current directional exposure, a third of which is in Europe and which is hedged in part with long Euro-bond, short EUR and short U.S. duration.

 

 

Picture: (c) PHOTOCREO-Michal-Bednarek—shutterstock.com  

 

 

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

Accendo-Backed SSH Secures Major Investment from Leonardo

While public and policy discussions around defence often focus on conventional weapons, many of today’s most active and frequent battles are unfolding in cyberspace....

Swedbank Robur Strengthens Private Equity Team

Swedbank Robur has appointed Lorenzo Gregory Sormani as co-portfolio manager of its private equity fund, Swedbank Robur Alternative Equity I, joining Senior Portfolio Manager...

Beyond Renewables: Coeli Fund Taps Into the Broader Electrification Race

Earlier this year, portfolio managers Vidar Kalvoy and Joel Etzler renamed their fund from Coeli Renewable Opportunities to Coeli Energy Opportunities – a move...

Three Danish Hedge Funds Recognized by the Hedge Fund Journal

Three Danish hedge funds have been recognized at the 2025 Hedge Fund Journal CTA and Discretionary Trader Awards. Two funds managed by Danske Bank...

Private Equity in Transition: Challenges and Opportunities

Private equity has matured into a mainstream – if not cornerstone – allocation for institutional investors. Following years of record fundraising and valuation expansion,...

Formue Highlights Private Credit’s Role in New Economic Era

Nordic wealth manager Formue has long prided itself on delivering institutional-grade investment solutions to high-net-worth individuals. As global economic conditions shift, Formue sees an important role...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.