Hedge funds now front-runners to boost investor returns this year, says Credit Suisse survey (Link)
The annual study, quizzing more than 200 institutional investors; collectively representing USD800 of hedge fund investments globally, found out that 70% of investors plan to amend their portfolios this year due to the lower bond yield environment.
Hedge funds are the most favored asset class to bolster the current 60/40 equities/bond mix and plug the funding gap, followed by high-yield credit equities, and private credit.
Equity-focused strategies are among the most popular class of hedge funds with investors.
Hedge fund short covering seen as big driver of Nasdaq rally (Link)
The recent rally in the Nasdaq 100 has been referred to as an oversold bounce aided by a drop in bond yields. Beneath the surface however, the surge was largely driven by hedge funds who were forced to pare their bearish bets to limit losses -- rather than genuine interest.
Short covering outpaced long sales by a ratio of 4:1 on Tuesday, according to data from Goldman Sachs Group Inc.'s prime brokerage unit.
As the spike in tech-heavy gauge didn't reflect appetite for risk, some analysts say those gains would likely be short-lived.
Gold 'falling' as equity hedge, faces headwinds, says BlackRock (Link)
Bullion is proving to be a less effective hedge against moves in other assets, such as stocks, as well as inflation, according to Russ Koestrich, portfolio manager for BlackRock's Global Allocation Fund. Moreover, gold faces headwinds should the recovery pick up pace.
Spot gold traded at $1734.15 an ounce at 2.07pm in Singapore, down more than 8% this year, while a gauge of the U.S. currency has risen about 2%. Among equity benchmarks, the S&P 500 Index gained almost 4% in 2021.
While gold's recent correlation with stocks and inflation has been positive to effectively zero, it is still demonstrating strong, negative relationship with the dollar; and for this reason, it should probably still be thought of as a dollar hedge.
Singapore central bank to invest US$2 billion in green assets via select managers (Link)
Singapore’s central bank plans to channel US$2 billion of its funds into green and sustainable assets through a select group of money management firms as part of efforts to attract green funds and asset managers with a sustainability focus to the city state.
Singapore offices will lead Asia-focused sustainability research, and spearhead environmental, social and governance (ESG) engagements in the region.
Total ESG assets in Asia Pacific more than doubled to around $42 billion last year from about $20 billion in 2019. Of the record of $30 billion global inflows into ESG funds last year, Asia attracted about $22 billion.
Last June, MAS released consultation papers proposing a set of environmental risk management guidelines for financial institutions. The proposals include requiring asset managers to develop risk management tools and metrics such as scenario analysis and stress testing, and disclosures on risk management and the impact of material environmental risk.
New analytics suite for FX trading launched by BidFX (Link)
This new offering is the latest addition to BidFX’s powerful suite of offerings for financial institutions, which includes an EMS platform, risk and compliance modules and transaction cost analysis (TCA).
With this expansion, banks, hedge funds and asset managers can access tools to manage the collection and cloud storage of client-specific liquidity streams, as well as monitor composite rates across multiple FX products. This gives institutional players a comprehensive view of the pricing, market impact and liquidity for every transaction.
BCMG launches South East Asia's first insured bitcoin fund (Link)
South East Asia's first insured bitcoin fund, BCMG Genesis Bitcoin Fund (BCGF-I), has officially launched to address the growing global interest from institutional and corporate investors.
The bitcoin fund offers insurance coverage and underwriting for Public Offering Security Insurance (POSI), adding an extra scrutiny level to its clients' investments. The fund is regulated in Labuan, Malaysia.