Hedge funds strongly recovered from the selloff, with only two exceptions: i) the fixed income funds, flat this
week, still isolated from the epicenter, and ii) neutral equity funds, still suffering from sector and factor
rotations. This week, we checked if the selloff altered the stock-pickers and trend-followers environments.
Persistent trends across asset classes continued to fuel CTA returns over the recent weeks. According to
several benchmarks of performance, January is on track to see them delivering the highest monthly returns
in a decade!
Tim Haywood, investment director for absolute return fixed income strategies, shares his views on the current macroeconomic environment and opportunities in the bond markets.
The world's largest 100 alternative asset managers saw assets under management increase by 10% in 2016, rising to $4 trillion, according to the 2017 edition of Willis Towers Watson's Global Alternatives Survey.
Mounting signals that the latest leg of the bond market rally has started to reverse fueled hedge fund
strategies last week. Most recent inflation prints outpaced expectations both in the U.S. and the U.K., as
consumer prices rose +1.9% and +2.9% year-over-year in August, respectively.