Unravelling Hedge Fund Leverage

Christopher Joye

Coolabah Capital

In The Australian Financial Review I explain how Macquarie Bank has side-stepped the interest rate rigging scandal plaguing the major banks; examine the performance of some of Australia's best performing equity hedge funds (VGI and LHC are up 18% and 20% respectively over the last 12mths); segue into how you can avoid portfolio blow-ups through introducing "positive skew" and related advice from Deutsche Bank’s chief international economist, Dr Torsten Sløk, on how central banks are threatening global financial stability with their pursuit of cheap-money-at-all-costs policies; and unravel the tricky subject of hedge funds' "net" and "gross" exposures---the difference between the two is leverage, which can make a seemingly safe "market-neutral" hedge fund that claims "zero per cent" net market exposure twice as risky as a normal long-only equities manager. Free (VIEW LINK)


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Christopher Joye
Portfolio Manager & Chief Investment Officer
Coolabah Capital

Chris co-founded Coolabah in 2011, which today runs $7 billion with a team of 33 executives focussed on generating credit alpha from mispricings across fixed-income markets. In 2019, Chris was selected as one of FE fundinfo’s Top 10 “Alpha...

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