Hedge Fund Insights 2010

The Waldorf Hilton in London is a wonderful venue for such an interesting event organized by Lyxor. The presentation examined how the world of alternative investments took advantange of last year´s disruptions and what are the opportunities for this year.

Mathieu Vaissié, Senior Portfolio Manager of Lyxor, pinpointed the following:
  1. Hedge Funds will represent better diversification this year.
  2. Bonds remain attractive as long as the Fed is on hold.
  3. The recovery is very weak (no consumption), however there´s limited downside.
  4. Last year returns came from beta (market), this year will come from alpha (stock picking), so recommended strategies are Long-short, event driven, active trading, CTA´s...
Kurt Feurman, Portfolio Manager of Caxton, one of the best managers in the world specialized in the US market with a return of 103% while the index made -2.8%, expected a peaceful year with clear opportunities. He explained why.
  1. S&P is at the same level as it was in 1998.
  2. The EPS in 1998 were 44$ with dividends of 16$, in 2010 we will get an average EPS of 80$ and 24$ in dividends.
  3. He recommended HP, Wal-mart and Abbott Laboratories.