- Advertisement -
- Advertisement -

A Year of Transition for Markets; a Year of Opportunity for Hedge Funds

- Advertisement -

By Adam Singleton – CIO, Man FRM: We are entering an unusual period for global economic policy, with predictions of multiple rate cuts despite none of the usual reasons for looser monetary policy.

1. Introduction

The fourth quarter of 2023 capped a strange year for traditional assets. Despite lingering economic concerns, increasing corporate defaults and a squeezed consumer, equity markets finished the year strongly. The incrementally dovish rhetoric from central banks, particularly the Federal Reserve, buoyed risk assets into year-end and drove down bond yields on the expectation of multiple rate cuts over the next year. This was generally a headwind for hedge fund alpha, since market volatility remained low, dislocations were small and infrequent, and trends in markets have been short-lived. 

However, as elaborated at length below, we believe that we continue to sit within a transition period for the global economy on multiple fronts, and that the low levels of implied volatility seen in Q4 2023 are unlikely to last through 2024.

Read the full article here.

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

Our newsletter is sent once a week, every Friday.

Man Group
Man Grouphttp://www.man.com
Man Group is a global, technology-empowered active investment management firm focused on delivering alpha and portfolio solutions for clients. Headquartered in London, we manage $151.7 billion* and operate across multiple offices globally. *As at 30 June 2023.

Latest Articles

Leveraging Opportunities in Credit Markets

Stockholm (HedgeNordic) – After several years of successful bond investing through a private investment company, Nicolai Wenckheim launched an alternative investment fund in March...

ATP’s Response to Changing Equity-Bond Correlations

Stockholm (HedgeNordic) – In 2022, the usual negative correlation between equities and bonds, essential for the construction of diversified portfolios, disappeared. This rare anomaly,...

Evolution in Hedge Fund Investing with LGT Collaboration

Stockholm (HedgeNordic) – Since Peter Ragnarsson assumed the role of Head of Alternatives at PRI Pensionsgaranti in 2015, the Swedish pension insurer has significantly...

Borea Expands Sustainability Focus with New Hire

Stockholm (HedgeNordic) – Norwegian fund boutique Borea Asset Management has expanded its management team with the hiring of Iselin Ahmer Solberg as a corporate...

Schroders Strengthens Nordic Client Team

Stockholm (HedgeNordic) – Schroders is expanding its client relationship capabilities in the Nordics with the appointment of Ludvig Löfving as a Client Director. He...

The Lynx Constellation Is Brightening Up

Stockholm (HedgeNordic) – Lynx Asset Management made headlines in late 2019 with the launch of its pure-play machine learning strategy, Constellation, as a standalone...

Allocator Interviews

Latest Articles

Man Institute Insights


Request for Proposal

- Advertisement -