Bringing you live news and features since 2006 

Hedge funds mitigate downside says Optima’s Boardman

RELATED TOPICS​

Veteran hedge fund of funds’ manager Dixon Boardman, CEO and Founder of Optima Fund Management, has commented on how hedge funds have performed in the recent volatile market.

He says: “First, the recent downdraft in equities is a long-overdue correction that helps restore the health of markets. It is noteworthy that hedge funds have mitigated to a large extent the downside versus unhedged portfolios in this correction. Second, it creates attractive opportunities for experienced hedge fund managers who are able to identify stocks with solid fundamentals that are the ‘winners’ on the long side, and those that are overvalued and overhyped ‘losers’ on the short side. To put recent market moves in perspective, consider the following: macroeconomic trends, liquidity and valuations.
 
Boardman feels that in general, hedge funds tend to perform well in the latter stages of a recovery when there often is greater dispersion in security pricing, global growth rates and interest rate differentials.
 
“The long-term benefits of hedge fund exposure have not changed. Although historically there have been periods when hedge funds as an asset class may have underperformed, the long-term benefits (superior performance, significant alpha creation, material downside protection, exceptional talent, low or negative correlation to other asset  classes, portfolio diversification benefits, etc.) of this exposure continue to make sense in an overall portfolio context,” he says.
 

Latest News

CoinShares writes that digital asset investment products saw inflows for the third consecutive week totalling USD1.05 billion, with cumulative flows..
The New York Stock Exchange, part of Intercontinental Exchange, Inc, has announced it is collaborating with CoinDesk Indices to launch..
ETP provider GraniteShares has announced it has surpassed USD5 billion in assets under management (AUM), reaching USD5.199 billion...
News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by