The credit markets have been very strong and yes, there are risks to the downside at these levels. Investors who are trying to get some visibility on the direction of the markets may be overlooking the obvious: hedge strategies are generally mispricing convergence strategies. There may be mark to market risk but, over time, portfolios which are responsibly hedged and levered within strategic parameters will benefit regardless.
Variance Capital Management is a capital introductory firm for single manager hedge fund strategies. Variance Capital will only represent well capitalized fund managers whose capacity to generate alpha is tested over time.
The firm was founded in early 2004 by Martin Frenette to meet the growing demands of the institutional market place and their need to better understand and follow the development of the hedge fund industry. It brings strong international ties in Canada, the United Kingdom, Switzerland and France.
Arbitrage opportunities in credit
June 8th, 2009TALF: Term ABS Loan Facility
June 8th, 2009The TALF program set up by the U.S. Treasury and Federal Reserve early this year has had its intended effect of bringing back private capital to the consumer loan market. We interviewed Scott C. Johnston, Managing Partner of the Belstar Group in New York, who has launched a fund to capitalize on this opportunity.
Fund of fund benchmarking
June 2nd, 2009Fund of hedge funds are more benchmarked than ever . There is less and less product differenciation and the correaltion bewtween indices, off the shelf multi-strategy products and the largest hedge funds is growing. This will have a clear impact on how investors perceive an industry, which once prided itself on absolute returns, now built on relative perfromance.
Reset or recovery?
June 1st, 2009One of the hedge fund managers we represent reflects on the recent market rally, and how it’s simply the result of a transfer of wealth from “taxpayer’s equity” to shareholder’s equity. It is not a sign of an economic recovery, not yet anyway…
Funds are preparing to meet investor redemptions
June 1st, 2009Hedge funds which had frozen their NAVs should be able to resume liquidity for their investors very soon. Lenders and ISDA counterparties are becoming more and more comfortable that a potentially lower NAV due to redemptions does not automatically translate into the perception that these funds are an increased risk. Stress on the markets thay may result for the selling of positions should be limited.