The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
In the first month of 2008, hedge funds fell, with the RBC Hedge 250 Index down by 1.82% and MSCI Hedge Invest Index falling 2.27%.
However, the MSCI World Index fell 7.7% on the month and the MSCI Emerging markets shed 12.6%. In that context, the hedge funds didnÆt do so badly.
Our resident panel of half-time experts cast their eyes over the playing field.
ôIt's the team who scores most goals that wins,ö says Peter Douglas of hedge fund consultant GFIA in Singapore. ôJanuary sorted the men from the boys and even revealed a little bit of pure alpha here and there. The range was from double digit losses, which for many funds may mean an early bath; through to a more typical minus four to minus six which, given the state of the markets, was still a result; to a small number of positive numbers, for example Komodo, and Artradis, who will be vying for the man of the match award.ö
EurekahedgeÆs hedge fund index fell 3.1%, one of its lousiest monthly performances in recent years. EurekahedgeÆs Japan index was down 3.1% and the Asia ex-Japan index fell by 6.6%.
ôA game of two halves: thatÆs not quite the right analogy,ö says Mark Reinisch, a director at fund of funds firm Financial Risk Management. ôAgain it was a month where headline numbers, do not tell the full story. We are in a liquidity squeeze and volatility and uncertainty are up. As a consequence, the traders did well in January while those focusing on fundamentals and value suffered some losses. That said, an industry where the average was down 2%-3% when world equity markets were down 7%-10% is doing something right.ö
Indian hedge funds had the worst January in the Asia region, down by 11.5%. Greater China funds were down by 8.3% and the best local geographical performance was from Australia/New Zealand which fell by 5.8%.
Looking at hedge fund strategies in Asia, fixed income did best, with a drop of just 0.28%, and long/short was the laggard, falling by 8.00%.
ôAll in all, I would say the industry did a fair job of managing a very greasy ball on an appalling pitch,ö added Douglas, [and with a line of patter like this, he really should be managing Exeter City]. ôConditions for the rest of the year are likely to remain very tricky, and the difference between the first team and the reserve bench is likely to become much clearer by the year end.ö
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
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