HSBC Wealth picks hedge funds as volatility rises
Main U.S. indexes advance; Nasdaq out front, up ~1.8%
Tech leads S&P 500 sector gainers; Healthcare sole loser
Euro STOXX 600 index up ~1.5%
Dollar, gold up; bitcoin, crude both up >1%
U.S. 10-Year Treasury yield rises to ~3.94%
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HSBC WEALTH PICKS HEDGE FUNDS AS VOLATILITY RISES
HSBC's private banking and wealth arm thinks there are bargains to be found after Monday’s stock-market sell-off - and not just in tech companies.
Willem Sels, chief investment officer for Global Private Banking and Wealth at HSBC, said on Tuesday he sees opportunities after the drop in stocks took the froth out of tech valuations.
He also told Reuters his institution had cut its overweight position in government bonds and increased exposure to hedge funds, fast-moving investors it believes can profit from market swings.
"With the downgrade of government bonds, a small downgrade, we've upgraded hedge funds," Sels said.
"For the macro and the multi strategy (hedge funds) there will be a huge opportunity set," he said. "Macro has done probably reasonably well over the last over few days, because they were generally not long equities, and they were long on government bonds."
Macro hedge funds tend to focus on making money from big macroeconomic risks and political events - and there'll be no shortage of those coming up. Hedge funds as a whole have more trading opportunities when volatility spikes, and right now there's no shortage of that either.
(Harry Robertson)
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FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
S&P 500 INDEX: TIME FOR ANOTHER TURN? - CLICK HERE
WHAT HAS CHANGED AFTER THE MARKET MAYHEM? - CLICK HERE
ANOTHER TECH BUYER COMES INTO THE OPEN - CLICK HERE
A NEW LOW BEFORE A PROPER RECOVERY, JUST LIKE IN 2018? - CLICK HERE
BANKS LEAD GAINS IN EUROPE, HEALTHCARE DRAGS - CLICK HERE
GREEN SHOOTS FOR STOCKS - CLICK HERE
BOJ SAVES THE DAY - CLICK HERE
CBOE Volatility Index https://reut.rs/4dvKOE3
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