Why Goldman Sachs sees uptick in interest in hedge funds in new market regime

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 58 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 97%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Markets may stay bumpy with interest rates at elevated levels, an environment that Goldman Sachs Group’s Jack Springate says has sparked heightened investor...

Markets may stay bumpy with interest rates at elevated levels, an environment that Goldman Sachs Group’s Jack Springate says has sparked heightened investor interest in hedge funds.

“Hedge funds were generally more defensively positioned coming into this year,” a stance that “worked very well” in 2022, he said. “Regimes when interest rates have been higher and market levels of volatility have been elevated, you’ve generally seen better returns from hedge funds.” The Vanguard Total Bond Market ETF BND, which provides broad exposure to U.S. investment-grade fixed-income securities, has posted a 1.5% total return this year through Tuesday, after slumping this month as Treasury yields jumped, FactSet data show.

Managers in the hedge fund industry recognize “the Fed has a difficult needle to thread of lowering inflation without causing the economy to go into a steep recession,” said Springate. “So far so good,” he said, but “inflation can be a hard thing to tame and can lead to more volatile markets with big up and down trends.”

The CBOE Volatility Index, a measure of fear in the stock market derived from the S&P 500, traded around 14.5 on Tuesday, well below its 200-day moving average of 18.5, FactSet data show. The index VIX also dipped slightly below its 50-day moving average of 14.8.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Goldman Sachs Sells Advisor Business to Creative PlanningThe sale comes as Goldman is in a bit of transformation.
Source: MarketWatch - 🏆 3. / 97 Read more »

Goldman Sachs unloads another business acquired under CEO David SolomonAmid CEO David Solomon's push to unload or shutter several businesses tied to his retail banking plan, the high-net worth business was deemed too small.
Source: CNBC - 🏆 12. / 72 Read more »