The large hedge funds die
Dec 02, 2014, By Anneliese Proissl
World's 461 Hede Fund had to give up alone until mid-year. The industry rubs up between fluctuation-poor markets, offer little chance of price gains, low interest rates and failed bets on macroeconomic development. Two particularly bloody years behind the industry.
Already the first half of the year was a disaster for hedge funds. Fund research 461 Hede Fund had to give up according to HFR hedge US consulting company alone until mid-year. Already in the previous year, the air went out 904 Fund due to persistent lack of success. Only 2009 as 1.023 from the financial crisis have been swept away, it was worse.
The latest victim in the futile struggle of returns: Brevan Howard Asset Management. The Fund managed by Stephane Nicolas had $630 million available to multiply the money of the investors. Only the gains remained, out despite some risky investment strategies. So the investors in the Fund have lost journals of Wall Street more than four percent in the past two years, according to data. Before the Fund pulled the ripcord, the yield has fallen by ten percent, even in September. The company's two funds have closed this year. One of the most famous cases in the German-speaking countries, in which a hedge fund was closed, was the DWS, which already 2010 has retreated from the hedge fund business.
Macroeconomic policies brought to many Fund case
Many hedge funds, which have speculated on macroeconomic trends and this year an average came to less than a percent yield, have given up. As one of the main reasons they called most, that it is difficult in an environment with low interest rates and little price volatility to earn money.
Minor restrictions, high risk
Many of the funds that were not in the position to offer positive returns, investors pursuing a global macro strategy, include also speculation on interest rates according to Bloomberg. Global macro Fund set up the fewest restrictions. You want to benefit economically unjustified price differences around the world. Basically you worldwide for all markets are open. However, many funds focus on foreign exchange and interest rate markets. The most famous representatives of this Guild: George Soros and his quantum Fund. He had thus specialized in currency speculation and plunged into severe turbulence so all Governments such as those England, who was thus forced to devalue the pound strong. Soros earned at that time roughly a billion dollars with the bet on the falling pound.
45 billion dollars are bet on a rising dollar currently
In the recent past have speculated this global macro Fund, for example, on a depreciation of the euro. But for two years the currency appreciates continuously and vigorously. But the hedge fund managers do not give up. The prospect of a devaluation seem finally reach. In the first week in November, have become the new bullish trend bets on the dollar further and reached a record high of $45.7 billion. That emerges from current data of the CFTC's futures supervision. The euro is sold, however, solid. 28 billion dollars will be used on short positions. This corresponds to around 62 percent of betting dollars. The market was so pessimistic since August 2012 no longer. A more popular speculation at the beginning of the Greece crisis: The bet on the sovereign default. The problem: You strengthen a trend, through their considerable financial strength which can have a negative effect on the economic situation of a country.
Many Austro hedge funds in the minus
Many funds for the little guy, which are available in this country and pursue alternative hedge fund strategies, are affected. So many in this country popular hedge funds of funds on an annual basis is deep red. The Espa alternative global markets of the erste Sparinvest lost this year already 6.6 per cent, the strategic commodity Fund of Spängler Bank recorded a decline of 6.5 percent. But there are also hedge fund managers that their ship successfully through the storm manövieren. The Salus Alpha directional brand of Valartis Bank has this year 16.8 percent, in the previous year were 15.4 percent. The Fund seeks tendencies on the global markets profitably capitalize (interest rates, currencies, bonds, commodities and/or stocks).
