The importance of geographic revenue mix has increased in recent years as growth prospects for emerging and developed markets have diverged. For European and U.S. companies positioned to capitalize on this growth, it may provide a silver lining despite slowing domestic demand.
This primer revisits the widely misunderstood practice of short selling, considers the associated risks, and addresses the role of dedicated short sellers in a broad investment portfolio.
Natural resources equities offer reasonable values today, and some shelter during future inflationary periods.
While property prices have soared over the past year, future returns are likely to be tepid, with gains capped by the huge debt overhang and limited lender capacity, but supported by the accommodative monetary environment.
This paper provides an introduction to hedge fund strategies and operations. Topics covered include common investment strategies, capacity, investor base, legal and fee structures, liquidity provisions, staffing, external service providers, and fund documents.
While there are few options to effectively hedge against a US$ crash, investors should nevertheless think carefully about the ways such an event might play out, and what this implies for the efficacy of current investment strategies.
Authorities have taken decisive steps recently to quell concerns about sovereign debts. However, the underlying problems will take a long time to work through and thus volatility is likely to be a recurring theme in European markets for some time.
Many institutions are reviewing their fixed income exposure in light of concerns over the prospects for rising interest rates. While shortening duration to protect portfolios against higher rates ahead seems intuitively appealing, experience indicates it is ill-founded.
Stretched valuations and macroeconomic uncertainty leave emerging markets equities vulnerable.
Investors in emerging markets cash funds have historically enjoyed a smooth ride given high local interest rates; those investing in today’s low-rate environment will depend more on currency appreciation.