Set this page to:
Go to FERI in:
myFERI Economics Portal

FERI Alternatives Update: "It Always Depends on the Individual Strategy and the Right Manager"

Bad Homburg, 08/22/2019
from FERI
  • Hedge funds to grow significantly in the course of 2019
  • Selection of the right manager remains crucial

Hedge funds have performed better this year than at any time since 2009. Until the end of July 2019, managers who implement systematic trading strategies (+ 7.7% YTD) were the main beneficiaries of the ups and downs on the stock markets in the first half of the year. However, just a few months ago it looked as if the asset class would not meet investors' expectations. The market-wide "Barclay Hedge Fund Index" had slid into the red in the fourth quarter of 2018 along with the stock markets. Actually, hedge funds should rule out a correlation with equity investments. However, an overall view of hedge funds should be taken with caution.

"Hedge funds are not a homogeneous asset class, because each manager always pursues his own individual strategy. Therefore, it is not the performance of the overall market that counts, but always the performance of the individual strategy or manager", says Marcus Storr, Head of Alternative Investments at FERI. Accordingly, relative value and tactical trading strategies in particular, which include Global Macro and managed futures funds, had performed better than the rest of the market in the difficult fourth quarter of 2018. Relative value strategies lost only slightly at the end of 2018, while tactical trading strategies even bucked the downward trend and posted gains.

The Investment Style Has to Fit the Market Environment

Relative value managers try to generate short-term profits from price fluctuations and interest rate differences on the international capital markets. Tactical Trading Managers take advantage of the higher volatility in the equity markets and the divergence between economic growth and monetary policy to make profits. The current market environment therefore offers opportunities for both investment styles. "Overall, the performance of hedge funds is subject to significantly less fluctuation than the global equity market. Hedge funds thus remain indispensable for investors who want to diversify their portfolio widely and at the same time stabilize it," says Storr.


About FERI

Founded in 1987 and headquartered in Bad Homburg, Germany, the FERI Group has developed into one of the leading investment houses in the German-speaking area. FERI offers tailor-made solutions for institutional investors, family assets and trusts in the following areas:

•    Investment Research: macroeconomic forecasts and asset allocation analyses
•    Investment Management: institutional asset management and private wealth management
•    Investment Consulting: advisory services for institutional investors and family offices

The FERI Cognitive Finance Institute was formed in 2016. It is the strategic research centre and creative think tank of the FERI Group. The Institute focuses on innovative analyses and the development of methods for long-term oriented economic and capital market research. 

FERI and MLP currently have assets of EUR 37 billion under management. A total of EUR 8 billion of these assets are alternative investments. The FERI Group is headquartered in Bad Homburg and has offices in Dusseldorf, Hamburg, Luxembourg, Munich, Vienna and Zurich.



Media relations contact

Katja Liese

Member of the Management Board

Corporate Strategy, Marketing and Communications

T +49 (0) 6172 916-3192

F +49 (0) 6172 916-1192

presse@feri.de

FERI AG

Rathausplatz 8-10

D-61348 Bad Homburg

Contact
Contact
Login
Languages
Katja Liese
Member of the Management Board
Corporate Strategy, Marketing and Communications

T +49 (0) 6172 916-3192
F +49 (0) 6172 916-1192
presse@feri.de

FERI AG
Rathausplatz 8-10
D-61348 Bad Homburg

Contact

Thank you for your message. We come back to your request.

Sorry, an error has occurred.

The secure code you entered is invalid.

Set this page to:
Go to FERI in:
CONTACT
Telephone
Contact
Katja Liese
Member of the Management Board
Corporate Strategy, Marketing and Communications

T +49 (0) 6172 916-3192
F +49 (0) 6172 916-1192
presse@feri.de

FERI AG
Rathausplatz 8-10
D-61348 Bad Homburg

Contact

Thank you for your message. We come back to your request.

Sorry, an error has occurred.

The secure code you entered is invalid.