Surfing With Sharks

Headlines change but investor behavior stays the same.

In December of 2007 we published a commentary entitled Surfing with Sharks where we highlighted several indications the markets may be headed for trouble. It had been five years since the tech bubble burst and memories of the devastating 2000-2002 bear market were all but gone. Emboldened by low interest rates and government stimulus..

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An Alternative View on High Yield Risk

Let’s face it, in a zero interest rate world, yield is hard to come by. Maybe that’s why investors have been stampeding into high yield bonds this year. We certainly aren’t complaining. The long side of our Long-Short High Yield Bond strategy Alternative Income has benefited. But there are emerging signs that it may be time to start reducing risk, and consider opportunities on the short side.

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Credit Markets: What No One Is Talking About In August

Its Quiet Out There.

With NYSE volumes at the lowest levels of the year for the past week, equity markets are marking time until tomorrow’s Jackson Hole Economic Summit where equity investors are clinging to any hint of fresh stimulus from Fed Chairman Ben Bernanke. It was at this conference two years ago that he announced Quantitative Easing, and there are big expectations for the introduction..

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Deja Vu All Over Again: Opportunities in Long-Short

In our last commentary in April we warned it was time to pay attention to risk. Since then global equities have suffered steep declines, with S&P 500 losing -6.7% and the International EAFE index falling -10.0% at their worst levels. Where is the opportunity now?

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