Bitcoin’s inefficiencies are creating arbitrage trades for crypto hedge funds
Submitted
By Hugh Leask | 19/01/2021 - 9:15am
As more hedge funds pile into cryptocurrencies, market inefficiencies and price dispersion are bringing fresh arbitrage opportunities for managers.
Bitcoin’s sustained rally over the past year saw the cryptocurrency roar to a record high of more than USD41,000 in early 2021, with many investors increasingly using it as a hedge against falling real yields and inflation risks stemming from central bank quantitative easing.
But as more hedge fund managers join the digital asset arena, running a range of discretionary and quantitative strategies, the potential for alpha generation “will likely moderate” in the coming months and years, said senior Lyxor Asset Management strategists Jean-Baptiste Berthon and Philippe Ferreira, and hedge fund analyst Pierre Carreyn.
How global macro hedge funds can capitalise on the “looming” economic normalisation
Submitted
By Hugh Leask | 15/12/2020 - 3:45pm
Global macro hedge funds from across the emerging market, systematic and discretionary spectrum may be well-placed to capitalise on prevailing equity valuations amid economic “normalisation”, Lyxor Asset Management strategists said this week.
While discretionary global macro funds offer a tactical bias, which appears relevant “at the trough of the business cycle”, emerging market-focused macro managers benefit from stronger credit profiles of energy and metal exporters amid rising commodity prices.
Risk assets have been setting new records in the US recently, Lyxor said in a note this week, with the S&P500 now up 13 per cent since the end of October, before the results of the Pfizer/BioNTech Covid-19 vaccine were announced.