View more on these topics

HSBC unveils leveraged variant of global macro

HSBC Global Asset Management has introduced the GIF global macro II fund, a variation of its existing absolute return fund,  GIF global macro.

HSBC Global Asset Management has introduced the GIF global macro II fund, a variation of its existing absolute return fund,  GIF global macro.

The new fund will have the same investment strategy at the existing fund but will be leveraged as it will double up all the positions in the existing portfolio and is allowed to have twice the volatility. It will be run as a long and short multi-asset fund within a Ucits III framework, investing in equities, fixed income, currencies and cash, with the ability to take short positions using derivatives.  Its focus on highly liquid assets enables the fund to have daily liquidity.

Portfolio managers Guillaume Rabault and Jim Dunsford, who have manage the existing fund since inception in June 2007, will construct the portfolio using quant-based analysis to identify market trends and macroeconomic research. They are looking to benefit from price anomalies to produce returns that have low correlation to major asset classes such as equities and bonds.

Rabault and Dunsford can invest in market-neutral strategies that take advantage of valuation differences across a given asset class. They can also use directional strategies where long positions are taken in assets that are expected to rise in value and short positions are taken in assets that are likely to fall.

HSBC says global macro is one of the most popular and flexible hedge fund strategies. It says the fund was launched due to demand from macro investors looking for higher returns who can accept greater volatility, for whom the existing fund was too conservative.

The fund may suit sophisticated investors with a higher risk profile but potential investors should not expect the new fund’s returns to be precisely twice that of the existing fund as a result of the doubling up of positions. This is because the impact of volatility means the higher the leverage, the bigger the difference in performance between a leveraged portfolio and an unleveraged portfolio.

Recommended

Treasury urged to scrap Pension Input Period

The Treasury is facing calls to scrap the Pension Input Period following its decision to cut the annual allowance from £255,000 to £50,000. Experts argue the PIP, the timescale HMRC uses to measure annual payments into a pension scheme, could be out of sync with an employer’s tax year. If that is the case, an […]

CSR: Osborne says turning back on cuts will lead to ruin

Chancellor George Osborne has warned that any turning back on the scale of cuts would lead to “the road to ruin”. Announcing the Comprehensive spending review in Parliament today, Osborne said Government spending will continue to rise over the term of this parliament, from £651bn to £693bn, due to debt repayments. Responding to concerns about […]

3

Towry says wrap firms own clients

Clients with assets on a platform are owned by the wrap provider and not by the adviser, according to Towry group chief executive Andrew Fisher. Speaking at The Platforum conference in London last week, Fisher argued that while IFAs may think they own their clients when they move their assets onto a platform, it is […]

LEE_TRAVIS.jpg

Lee Travis

New Model Business Academy head of business Lee Travis is an ex-Royal Marine and is training to run in the London Marathon next year which will stand him in good stead as he says the academy is in it for the long haul too Interview by Gregor Watt

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment