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Monetary squeeze tightens another two notches
Monetary squeeze tightens another two notches

Investors were expecting quarter-point interest rate hikes from the US Federal Reserve and European Central Bank (ECB) in early May. They got them, along with the collapse of another American regional bank, a warning from Treasury Secretary Janet Yellen that the US may not be able to pay its bills in June if the debt ceiling standoff persists and more violent protests against pension reform in France.

Investment compass keeps spinning in mid-February
Investment compass keeps spinning in mid-February

With the one-year anniversary of Russia’s attack on Ukraine looming, the latest US inflation data showing headline inflation down and core inflation up, the Bank of Japan weeks away from a change in leadership and Sino-US tensions rising, investors found it hard during the second week of February to sustain their earlier optimism.

Quants Corner – A clearer view over the hedge
Quants Corner – A clearer view over the hedge

Historically, it has been hard to extract signals from aggregated hedge fund data that can (a) be integrated into existing investment processes or (b) used as the foundation for a new process. A desire to protect proprietary information, and greater discretion compared to so-called 40 Act funds regarding how much and when to report, makes the flow of data from the hedge fund universe inconsistent and heterogeneous.

Out with the old, in with the other
Out with the old, in with the other

In the financial world, the search for the ‘new normal’ started in the aftermath the great financial crisis as central banks unleashed unprecedented levels of quantitative easing on global asset markets. Among hedge funds, those offering established strategies – long/short, commodity trading, multi-strategy – have seen modest asset growth over the past decade while those offering something different have fared much better.