- Advertisement -
- Advertisement -

Related

IPM in Contrarian Long US dollar bet as “Fundamentals Take Control”

Powering Hedge Funds

Stockholm (HedgeNordic) – Stockholm-based quant hedge fund IPM Informed Portfolio Management has taken the other side of the trade in the US dollar, holding a significant long position in the greenback, Serge Houles (pictured), head of investment strategy told Bloomberg last week.

“One of the biggest positions we have now is the long dollar position. The dollar is one of the currencies that offers the best yield so the carry of the dollar is one of the most attractive”, he was quoted as saying.

According to Houles, the consensus in the market is that speculative positions on the dollar indicate that the market is short.

“It pays no attention to the political dimension, we are generally quite contrarian”, Houles said.

IPM, which manages about 5.5 billion USD in its macro strategy, relies on about 70 fundamental factors in its systematic model and uses no discretion in its management. It holds positions on average for one year. The long dollar position could have a shorter horizon because it is mostly driven by factors that are relatively shorter term, 4-6 months, such as the dynamics of financial flows, Bloomberg writes.

“These measures we use to measure financial flows are all very positive for being long the dollar. Financial flow factors tend to be more tactical and short term. Then the flow dynamics can turn around more rapidly”, Houles said.

The fund is currently also short the Swiss franc and the Swedish krona in its currency portfolio. In the bond portfolio it is long Bunds and short Japanese government bonds while it is long European stocks and short North American and Chinese equities. Overall the fund is short equity markets.

“These kind of moves that we saw in February were really driven by a normalization toward fundamentals given that risk has been mis-priced for many years. We find that fundamentals take control again and that is good for us”, Houles told Bloomberg.

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

Our newsletter is sent once a week, every Friday.

Jonathan Furelid
Jonathan Furelid
Jonathan Furelid is editor and hedge fund analyst at HedgeNordic. Having a background allocating institutional portfolios of systematic strategies at CTA-specialist RPM Risk & Portfolio Management, Mr. Furelid’s focus areas include sytematic macro and CTAs. Jonathan can be reached at: jonathan@hedgenordic.com

Latest Articles

(EM)Powering Hedge Funds

The hedge fund industry is operating at a moment where complexity is no longer cyclical, but structural. Technology stacks are deeper, investor expectations sharper,...

A Fireside Discussion Between Stephen Roberts (CWAN) and Serge Houles (Tidan)

The Nordic hedge-fund market has long balanced innovation with prudence. As allocators push for transparency, customization and scale, that balance is being re-drawn. In...

Asset Tokenisation: Democratising Nordic Hedge Fund Access

By Johan Lindberg, CACEIS: The Nordic financial market, long recognised for its innovative approach to investment and technology, is facing its next big transformation....

Operational Challenges – A Summary

The Nordic COO Roundtable brought together a diverse group of operational leaders for a candid and wide-ranging discussion about the forces shaping their organisations....

Building the Backbone: The Role of Operations in Boutique Managers

For strong-performing boutique asset managers, the spotlight usually shines on portfolio managers: the stars whose decisions drive returns. And deservedly so. Yet behind every strong...

Service Is Critical In Complex Environments

By Sami Kellali, MAIA Technologies: Whether you’re a new manager launching, an established multi-strat or a single family office, today’s market environment is defined...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

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.