About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, January 30th, 9:28AM
rss
Latest Headlines

Hedge funds positive after attacks

The terrorist attacks in the United States have done nothing good for share funds around the world with returns plummeting. However, the opposite has happened in the hedge fund area.

Tuesday, September 25th 2001, 12:51PM

by Philip Macalister

The two main players in the New Zealand market, Tower and OM Strategic, have both reported positive returns.

OM Strategic says that its nine funds have returned between 4.27% and 7.21% in August.

Likewise Tower's GAM Multi-Trading fund has posted positive returns in the wake of the attacks.

Tower Managed Fund general manager Richard Baker says the fund was up a net 2.68% in the week after the attacks.

"(This is) an excellent result providing proof positive of a good multi-manager hedge fund performing well in the most trying of times," Baker says.

He says one of the underlying funds, GAMut made money in commodities such as oil and gold which went up in price bonds and by being short in US shares.

Another underlying fund, Multi-Trading, made money in bonds by being long the short end and in shares from being short. This fund lost some money in currencies and had mixed results in commodities.

One of the big tests for hedge funds will come when monthly returns for indices are reported early next month.

FundSource executive chairman David van Schaardenburg says there is a place for hedge funds in a portfolio, however he warns that not all funds are the same.

Hedge funds cover a huge range of different styles, and some of these will perform well in the present climate.

For instance funds which use a short-selling strategy are likely to have benefited as prices fell.

"There's a role for alternative investment strategies irrespective of what's going on."

Tower Asset Management chief executive Paul Bevin says the results from hedge funds will be mixed at the moment.

"No one can predict this kind of event so if a hedge fund did well it would be lucky. And if it did badly it would be unlucky."

While a number of equity raising issues have been cancelled in the wake of the attacks OM Strategic and Challenger-owned Blue Peak are still planning to launch new hedge funds next month.

For more on Hedge Funds read our Special Report - Demystifying Hedge Funds

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« News Round UpSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • DIMS conditions clarified
    “Well Minister Goldsmith does not have to look far to find unnecessary costs being piled onto adviser businesses and ultimately...”
    3 hours ago by MPT Heretic
  • Demand for simpler trauma policies
    “Maybe Milton and the other Head Honchos should maybe suck the Sav a bit and dial down their profit margins eh! And dont give...”
    2 days ago by billy the broker
  • Demand for simpler trauma policies
    “The Lifecare product that Fidelity offer is a good way around the problem. I think a lot of people do not understand it. Appreciate...”
    8 days ago by Wall
  • Time to address advice accessibility: Body
    “The problem is that you can give an adviser as much technical ability and education as you like, but in the end it comes...”
    8 days ago by traveller
  • Investors told: Don't bail out just yet
    “Gibbson, I've just spent almost a month in the USA. Both the east and west coasts. Things looked pretty good to me. ...”
    9 days ago by John Milner
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 7.24 5.69 6.19 6.55
AMP Home Loans $200k+ 7.14 5.59 6.09 6.45
AMP Home Loans LVR <80% - - 5.75 6.09
ANZ 6.74 6.09 6.09 6.39
ANZ Special - 5.59 5.55 5.99
ASB Bank 6.75 5.99 6.09 6.39
ASB Bank Special - 5.59 5.55 5.59
BankDirect 6.75 5.99 6.09 6.39
BankDirect Special - 5.59 5.55 5.59
BNZ - Classic - 5.69 5.75 5.59
BNZ - GlobalPlus 6.74 5.89 6.19 6.29
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.89 6.19 6.29
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 6.05 6.20 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
Lender Flt 1yr 2yr 3yr
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.65 5.69 5.74 ▼5.79
HBS Special - 5.59 5.49 ▼5.49
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.70 6.00 6.30 -
Housing NZ Corp 6.74 5.70 6.09 6.29
HSBC Premier 6.84 5.45 5.65 5.79
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Kiwibank 6.65 5.69 6.09 6.29
Lender Flt 1yr 2yr 3yr
Kiwibank - Capped - - - -
Kiwibank - Offset 6.55 - - -
Kiwibank LVR > 80% - - 5.55 5.89
Liberty - - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
Resimac 6.59 6.03 6.10 6.19
SBS Bank 6.65 5.69 5.74 ▼5.79
SBS Bank Special - 5.59 5.49 ▼5.49
Lender Flt 1yr 2yr 3yr
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 5.99 6.19 6.39
Sovereign Special - 5.59 5.75 5.59
The Co-operative Bank 6.70 5.59 5.59 5.74
TSB Bank 6.74 5.95 6.19 6.30
TSB Special - - 5.79 -
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Westpac Special - - 5.79 5.89
Median 6.70 5.95 6.09 6.29

Last updated: 28 January 2015 11:34am

News Quiz

A well-commented on story last week mooted that many authorised financial advisers are out of their depths discussing what with their clients?

bonds

death

divorce

piles

birth control

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com