F&C Asset Management pre- dicts that the next six to 12 months will be good for funds of hedge funds despite concerns that the underlying managers are becoming more selective about the money they accept.The hedge fund market witnessed a period of volatility and underperformance during the first half of this year but F&C believes it is now a good time for managers to add new positions at attractive prices, paving the way for better returns. The firm has identified three themes which are likely to produce positive returns for funds of hedge funds. One is unprecedented corporate restructuring and consolidation across Europe. Another is that cash-rich US companies that have not spent money on repairing their balance sheets will be in a position to pay more dividends. Finally, F&C anticipates an increase in bankruptcies within the bottom 10 to 15 per cent of companies, particularly in the US, as access to money will be increasingly difficult. This wave of bankruptcies will be useful for hedge funds that can trade the stocks and bonds of these companies cheaply. F&C believes good hedge funds that are able to use these themes to their advantage will be very popular but are more likely to limit capacity than risk poor performance by accepting too much money. Partner and senior fund of hedge fund portfolio manager Francois Barthelemy says: “Hedge funds have enjoyed a lot of new money and are becoming more discerning about which capital they accept. But there is always a steady flow of new hedge funds, some from people with 10 to 15 years’ experience. It is dynamic and funds of hedge funds cannot be stuck with a steady portfolio.”
The JPMF overseas investment trust is to undertake a strategic review following the declaration of an 18.2 per cent holding in the firm by arbitrageur Carrousel Capital.
In recent weeks, there seems to have been a considerable amount of hype bordering on scaremongering appearing in certain other industry trade publications about the risk of IFAs not being ready for the launch of Microsoft’s Vista operating system and the need to take urgent action to prepare for it.
All protection providers should reveal their claims statistics to improve understanding and decrease instances of non-disclosure by clients, according to Abbey for Intermediaries. Head of life and health propositions (protection) Sue Wilkinson made her call as ScotProv released its critical-illness claims data for January to June 2005. The data shows that the majority of unsuccessful […]
The Financial Services Consumer Panel is appointing Adam Phillips as its new vice chairman from November 1.He will take over from Dianne Hayter who stood down at the end of September 2005. FSA chairman Callum McCarthy says: “I would like to welcome Adam to his new role. He will support consumer panel chairman John Howard […]
Three of our UK fund managers – Adrian Frost, Ed Legget and Mark Niznik – discuss the EU referendum and how it is affecting their portfolios. Click here for article
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Another investment manager offering enterprise investment schemes has alerted clients of a 10 per cent drop in value for one of its portfolios following new Mifid rules. Mifid II, which came into force on 3 January, requires firms to notify clients when the overall value of their portfolio, relative to its value at the beginning of each reporting […]
The recent enquiry by the work and pensions select committee has reignited the debate about the future of collective defined contribution schemes. Whether these sort of schemes can be incorporated into the current UK pensions landscape is a moot point. Let’s consider some of the arguments for and against CDC. First of all, it is […]
Retirement interest-only mortgages are set to become more popular following the FCA removing hurdles to selling them. The regulator sees RIO mortgages as a possible aid to the waves of maturing interest-only loans with no repayment strategy. However, the FCA also wants RIO mortgages to be sold more widely, for example as an additional option […]