- Advertisement -
- Advertisement -

Related

Hedge Funds Anticipating French Elections Differently

Industry 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

Renewables in Retreat? Not for Coeli Energy Opportunities

Coeli Energy Opportunities, a long/short equity fund focused on renewable energy, currently ranks as the second-best performing Nordic hedge fund year-to-date, delivering a return...

Alcur Fonder Hires SEB Small-Cap Analyst

Shortly after appointing stockbroker Per Flöstrand as fund manager earlier this year, Stockholm-based hedge fund boutique Alcur Fonder has further strengthened its portfolio management...

Ress Life Rotates Portfolio to Capitalize on Repricing

Discount rates in the U.S. life settlement market have increased in recent years, reflecting a shift in supply-demand dynamics. Higher interest rates have made...

Accendo Appoints Johanna Pynnä as Senior Advisor

Activist hedge fund Accendo Capital has expanded its advisory network with the appointment of Johanna Pynnä as Senior Advisor, Strategy. In her new role,...

Peter Andersland Stays Cautious, Adds Convexity

Fund manager Peter Andersland had maintained a bearish economic outlook in recent quarters, and the tariff-related uncertainty and market volatility triggered by U.S. President...

Sissener Taps Mads Andreassen as Investment Manager

Norwegian fund boutique Sissener AS has strenghened its investment team with the appointment of Mads Andreassen as an investment manager, effective from the beginning...

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.