According to HFR, hedge fund in 2017 has reached over 320 billion dollars. Considered to be a new high in one and a half years.Beginning from the fourth quarter of 2017, money influx has rushed into the market of hedge fund. Greatly changed from 2016’s money exiting. In 2017, hedge fund structured to be 88% as capital investment, the rest to be pure money influence. Even though the whole body of hedge fund is as the same as 2016, but the net outflow of 70 billion dollars from 2016 is now at 10 billion USD of inflow.
In the recent event, Dow Jones was down by 4.6%, CaishiV analysts says that the fall can be seen by the recent VIX index. As it goes up, meaning the market investors has become cautious and start to worry about the future of the market.Based on the study of previous VIX index, as it has stayed at low for a while, some of the industry has bubble that will eventually to be popped out, and the time has come. On the other hand, by researching the quantitative investment, even though it has increased its size in hedge fund market, but it still has its weakness which it is much slower than a traditional operation, especially in a sudden event. Meaning, quantitative investment operators could potentially lose more.
As of the future of the global market for hedge funds, 2018 is in the phase of adjustment. Many opportunities may appear, but still includes some high risk, low performance funds. They will be phased out after all. However, investors should also be aware of them, as they may appear to be appealing. Investors should keep their eyes in the long-term.
In the meantime, CaishiV is hosting the 5thAnnual Hedge Fund China on April 21, 2018, with support from our long-term partners, such as AIMA, CFA, CHFA and CAIA. CaishiV has managed to invite the top investors, firms and fund managers, totaling 400 attendees from hedge fund investors, quantitative investors, private banks officials, family offices managements and asset management CXOs.
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In 2018, the topics are set to be: pension fund big thinking, A-Shares Market Outlook in 2018, Hedge Fund in Global Market, Global View and Investment of China’s Fund Managers, Off-shore Fund Admin and Structure, Global View of Investment – H Shares, US Stocks, Bitcoin, Off-shore RMB Hedging & FX Trading, Exploiting Data into Quantitative Investment Process, Quantitative Investment, Unstructured Data, Machine Learning to Generate Alpha, Big Data, AI, Machine learning & Robo-advisor, Regulation Impact – CRS and FATCA, Looking for New Opportunities in CTA Strategy, Off shore Trust Service to Meet China’s Rich, How to Sustain Wealth Throughout Intergenerational Transition.