Resource Center

Hedge Fund Strategies: Global Macro

Introduction The global macro hedge fund strategy is one of the more opportunistic and unconstrained hedge fund strategies whereby managers canvass the global economic landscape and seek to profit from macroeconomic imbalances and geopolitical events. Global macro managers pursue a top down investing approach and trade a broad range of strategies in which the investment…

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Beyond 60-40 – The evolving role of hedge funds in institutional investor portfolios

A recent study completed by the Alternative Investment Management Association concludes that institutional investors are moving away from the 60/40 (equity/bond) mix and increasingly using hedge funds and other alternative assets. Alternatives allow investors to customize their portfolios and meet their individual objectives in terms of risk adjusted terms, diversification, lower correlations, lower volatility and…

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Long/Short Equity

Introduction The long/short equity strategy is one of the more nimble hedge fund strategies whereby managers seek opportunities across global equity markets with the objective of outperforming traditional markets over a given cycle. The concept behind the long/short equity strategy is simple: investment research uncovers expected winners and losers and the hedge fund enhances its…

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The Hedge Fund Advantage

Traditional Investments vs. Alternative Investments In recent years, institutional investors have increasingly added alternative investments to their traditional portfolios because their unique risk and return properties are generally not associated with traditional investments. Hedge Fund Industry Extends Record Asset Levels Total capital invested in the global hedge fund industry reached $2.51 trillion in Q3 2013. Source: Hedge…

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Q4 2013 Market Update

  As we enter 2014, we pause to reflect on 2013 and to comment on market events during the year. Developed equity markets continued to gain strength in Q4, as markets responded to indications of improving growth and continued accommodative monetary policies by central banks around the world. The global economy as a whole has…

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November 14, 2013 – Weekly Market Commentary

At Waterloo Capital Management, we monitor certain economist and capital market theorists on an ongoing basis for the development of our tactical themes that we use in steering our portfolios. In light of all the news you are bombarded with, we thought we would help you “tune out the noise. We have taken the liberty…

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The Benefits of Institutional-Quality Managers

Industry research shows that investors’ overwhelmingly prefer institutional quality managers due to their robust infrastructure, enhanced liquidity and transparency, and proven track record. Key Benefits Proven Track Record Robust Infrastructure, Resources and Stability Enhanced Transparency and Scrutiny Proven Track Record Objective Review – unlike an emerging manager, institutional- quality managers’ performance can be reviewed against…

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Q2 2013 Market Update

The Fed’s QE program has continued to play an important role in equity and fixed income markets this year. However, this support appears likely to subside as the Fed looks for signs that the economy is strong enough to begin tapering its bond-buying program. After the June Fed meeting, Bernanke announced the Fed policy had…

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Q3 2013 Hedge Fund Review

Highlights  Asset Flows and Industry Trends Allocators to the industry sent $23 billion of net new capital into hedge funds during the quarter, bringing total industry assets to over $2.5 trillion. Investors continue to exhibit a bias towards the large, institutional-quality funds as 80% of this net new capitalflowed to managers who oversee more than…

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Q3 2013 Market Update

Global markets broadly rallied in Q3, fueled by a risk-on environment which was supported by continued (moderate) economic growth, ongoing support from the Fed’s QE program, and some stabilization of EU economies. Equities led the rise with the MSCI World Index appreciating 8.2%. Earlier in the quarter, talk of the Federal Reserve tapering their bond…

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Investing In A Debt-Fuelled World

A recent report by Principal Global surveyed investment organizations around the world who oversaw high net worth individuals assets, totaling $27.4 trillion in assets. The survey found that HNW individuals have favored five investment segments in particular: traditional index ETFs, hedge funds, private equity, and property. They have become less favorable in 2013 to currency…

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