Tuesday 27th January 2015
NEWS TICKER: TUESDAY JANUARY 27TH 2015: According to Luc Luyet, CIIA – senior market analyst at Swissquote: “The 4Q Australian inflation release on 28 January will likely be critical in the decision of the RBA to cut rates or not. Indeed, given the weakening commodity outlook and the relative attractiveness of Australian yields, a lower inflation reading would favour a rate cut from the RAB during its next monetary policy meeting on 3 February to support the recovery. Given the strong disinflationary forces at play due to lower oil prices, the short-term path of AUD/USD is likely on the downside.” Today traders are watching: Spanish December PPI m/m & y/y, IFO Business Climate, Current Assessment and Expectations in Germany in January, UK December BBA Loans for House Purchase and Dallas Fed’s January Manufacturing Activity Index. - Markitt in its review of how short sellers are positioning themselves in companies due to announce results in the coming week.points out Carbo Ceramics’ stock price falls 28% while short interest jumps by 78%. Short sellers have also covered 17% of positions as Kone’s stock continues to rise while Casio and Wacom face competition despite weakening yen’s improving prospects - The Financial Services Compensation Scheme (FSCS) has declared 10 financial advice firms in default. The FSCS has started paying compensation in respect of 13 firms, including seven investment advice firms and three life and pension advice firms that have gone into default. The financial advice firms which have entered default, according to the scheme are: Barry Norris & Associates, Premier Financial Advice, The Financial Consultancy (UK), True Financial Management (formerly HNL Financial Services), Unleash Advice Partnership, and AJ Buckley Financial Management formerly AJ Buckley Overseas, City Insurance Consultants. Last week, the FSCS published its plan and budget for the coming year, which revealed investment advisers would be paying £125m towards the FSCS annual levy for 2015/16. Life and pension intermediaries are paying a £57m levy, an increase of £24m compared to the £33m the FSCS levied against the funding sub-class for 2014/15. Since it was set up in 2001, the FSCS has paid out more than£975 million in compensation to customers of defaulted advice firms. In November 2014, the FSCS said it had dealt with the default of 2,391 independent advice firms since it was set up. - Retail Sales in the United Kingdom unexpectedly increased in December, as the drop in oil prices boosted the country’s spending power. The increase came from a 5.2% gain in computers, telecoms, toys, and sporting goods sales, while food sales alone contributed 1.3%. There was a decline in sales of some items, such as clothing and household goods, reflecting a boost from Black Friday discounts the previous month - The Source Goldman Sachs Equity Factor Index Europe UCITS ETF has been launched, the second Source ETF to be launched that provides access to Goldman Sachs’ multi-factor indices. “Smart beta funds have proven successful in certain markets, providing investors with the potential to generate better returns than the more common market-cap weighted benchmarks, particularly on a risk-adjusted basis,” says Michael John Lytle, chief development officer at Source. “The Goldman Sachs series of factor-based indices offer exposure to multiple factors, rather than just the one or two that are applied to many other funds on the market.” – Mixed news from the US over the weekend. Housing starts in the US surged, as builders broke ground in December on the most houses in almost seven years. Work began on 728,000 houses at an annual rate, a 7.2% increase from November and the most since March 2008. On the other hand, building permits, a representation for future construction declined 1.9% in December to a 1.03m pace, however more Americans filed applications for unemployment benefits last week, signaling that the holiday employment turnover is taking its toll on the jobs market. Jobless claims dropped by 10,000 to 307,000 in the week ending January 17th down from a revised rate of 317,000 in the prior week, a Labor department report shows. Applications for jobless benefits were expected to decline to 300,000, according to market surveys by economists - German ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, climbed for a third consecutive month in January to 48.4 from 34.9 in December. Economists forecast an increase to 40, according to the median of 37 estimates in a Bloomberg News survey. The sentiment index jumped to the highest level in 11 months - Singapore Exchange is partnering Clearbridge Accelerator to address financing gaps small and medium-sized enterprises (SMEs) and entrepreneurs face by providing the investing community with greater transparency. SGX said on Monday (Jan 26) it signed a Memorandum of Understanding (MoU) with CBA, a Singapore venture capital and incubation firm specialising in early-stage investments. Under the agreement, both parties will form a joint-venture (JV) company to develop the fund-raising platform, which aims to address financing gaps SMEs and entrepreneurs face by providing the investing community with greater transparency. The JV will identify and form a strategic equity partnership with an experienced platform operator and industry stakeholders such as financial institutions to operate the new capital-raising platform. It will also identify other partners and collaborators to create demand among investors for the offerings on the platform, according to the press release. The move to help smaller firms raise funding marks the entry of SGX into a new business area. Besides operating the stock market, which caters to the equity needs of more to established firms, SGX also offers a platform for bonds as well as derivatives and commodities. Enterprise development agency SPRING Singapore will play a supporting role in the formation of the JV, as part of its ongoing efforts to make the financing environment more conducive to SMEs and entrepreneurs, the statement added. - Hedge funds swung to betting on price falls in cotton, soybeans and wheat, amid ideas of easier supplies, as they cut bullish positioning in agricultural commodities to the weakest in three months Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from coffee to cattle, by more than 43,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator - Richard Bruton TD, Minister for Jobs, Enterprise and Innovation, today announced that the Viagogo Group, which operates www.viagogo.com, the ticket marketplace, intends to double its workforce in Ireland over the next three years, taking it from 100 to over 200 employees. The jobs are supported by the Department of Jobs, Enterprise and Innovation through IDA Ireland -

Asian hedge funds outperformed regional equity markets

Tuesday, 07 February 2012
Asian hedge funds outperformed regional equity markets Asian hedge funds outperformed volatile regional equity markets in 2011, marking the second consecutive year of such outperformance, according to data released by Hedge Fund Research Inc (HFR).  http://www.ftseglobalmarkets.com/

Asian hedge funds outperformed volatile regional equity markets in 2011, marking the second consecutive year of such outperformance, according to data released by Hedge Fund Research Inc (HFR). 

In a year marked by a difficult cycle of navigating steep equity market declines in Japan and Emerging Asia, the benchmark HFRX Asia with Japan Index posted a narrow gain of +0.4 percent in 4Q11 to end 2011 with a decline of -5.2 percent, mirroring the performance of the broad-based HFRI Fund Weighted Composite Index and topping the Nikkei 225 and the Shanghai Composite Index by 1,200 and nearly 1,700 basis points (bps), respectively. The recently launched HFRX Korea Index posted a gain of +4.8 percent for 4Q11 and, despite declining -7.5 percent for the full calendar year, also topped the benchmark Kospi Index by nearly 350 bps for 2011.

Global investors reduced capital invested in the Asian hedge fund industry by $1.04 billion in 4Q11, the first quarterly net outflow to Asian hedge funds since 1Q10. For the full year 2011, Asian hedge funds experienced a net inflow of $6.6 billion, representing a +7.5 percent increase in total AUM in these funds, bringing total estimated capital in Asian hedge funds to $82.1 billion to conclude the year. Contrary to trends across the global hedge fund industry, two-thirds of the new capital invested in Asian hedge funds in 2011 went to Equity Hedge strategies, with Event Driven and Relative Value Arbitrage also experiencing net increases in capital. While the largest sub-strategy for Asian hedge funds continues to be Equity Hedge: Fundamental Growth, funds executing on Distressed, Market Neutral and Event Driven: Multi-Strategy have experienced capital increases, while AUM dedicated to Macro and Activist funds has declined over the past year.



The total number of Asian hedge funds has also continued to increase, ending 2011 at nearly 1,100 funds, a gain of 4 percent for the year, and growth which has been consistent across both Emerging and Developed Asia. In addition, the number of funds choosing to locate in Asia also increased for the year, with China, Singapore and Australia all showing increases, while the number located in the US declined for the year. The percentage of Asian-focused hedge funds located in China increased to 28.6 percent in the second half of 2011, while the percentage located in the US declined to 26.4 percent.

“2011 was a challenging year for Asian hedge funds not only as a function of complexities associated with Asian inflation, natural disasters and speculation on currency policy, but also as related to assessing the potential impact that the European sovereign debt crisis could have on Asian trade, financial market liquidity and currency levels,” says Kenneth  Heinz, president of HFR. “The increased proliferation of specialised, Asian-located funds executing on uncorrelated, market neutral strategies and the relative performance benefits these offer are likely to attract capital from both Asian and global investors as cyclical risk tolerance increases in 2012.”

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