Month: December 2021

Monday’s links

  1. Fed Hikes Seen Starting With Yield Curve Flattest in Generation – Bloomberg
  2. Fed to pivot to swift action on inflation in face of rising prices – FT
  3. The Fed Is the Main Inflation Culprit – WSJ Opinion
  4. Fed Hinting At Accelerated Taper, And Yet Eurodollar Curve Still Inverted – Jeff Snider at Alhambra Research
  5. Bond Traders Stare at Worst Real Returns Since Volcker Era – Bloomberg
  6. The yield curve: why investors are watching closely – FT

6-Dec-2021: Hedgeweek Americas recognizes Anson Funds as Best Equity Hedge Fund (Over USD500m)

Moez Kassam, CIO, Anson Funds, says:

“With the rise of the retail investor and the extreme moves that so-called ‘meme stocks’ have experienced, prudent risk management processes have become increasingly important to ensure that market actors have enough protection against downside scenarios, which can emerge with alarming speed.” 

Strategies

To achieve its record-breaking performance over the last two years, Anson Funds has relied upon the diversity and versatility of its multi‐strategy approach. Anson Funds utilises several different investment strategies that thrive during different market environments – longs (tactical equity and REITs), shorts (momentum reversals and fundamental shorts) and opportunistic (structured financings, SPACs & catalyst driven investing). 

Kassam says:

“We have been able to harness the opportunities available to us in the overall market environment that manifests in any given period of time. Then, as market sentiment changes, we have successfully been able to pass the baton on to other strategies that are better suited for the new reality. This sounds easy to do retrospectively, but it requires significant skill and discipline to execute in real-time when market signals are still clouded with significant statistical noise.”

Each of Anson Funds’ sub-strategies generated strong returns during the past year, but some performed better at different times of the year than others.

Best Equity Hedge Fund – Secret to success

Kassam adds:

“The secret to our success is that we are market agnostic. We invest enormous resources, both in terms of human capital and of machine intelligence, to understand the directional contours of the market at any given time, and then adjust our investment approach accordingly.”

Anson Funds has learned that markets, and individual stocks, can act irrationally for long periods of time due to the combination of extremely loose fiscal and monetary policy, and the rise of the retail investor. Firms need to be willing to take losses and move when things don’t go their way.  

Looking ahead

Going forward, Anson Funds believes that more volatility is in store for markets. “Many new funds have juiced returns in this period through some combination of leverage and extreme concentration,” Kassam said. “That kind of strategy works until it doesn’t, and then the bottom can fall out of a fund’s performance.” The key, he believes, is to play the long game. “Our investors are looking to compound wealth over the long-term. This is our responsibility as stewards of their capital.” 

Monday’s links

  1. Flagging US consumer demand puts economy on track for slowdown – FT Opinion
  2. Morgan Stanley Sees Fed as Greater Threat to Stocks Than Omicron – Bloomberg
  3. High Inflation, Falling Unemployment Prompted Fed Pivot – WSJ
  4. The Fed Scares the Stock Market More Than Covid – Barron’s
  5. Non-bank financial sector: systemic regulation needed – BIS (also on Recommended Articles tab)
  6. The QE Afterparty – Fed Guy (also on Recommended Articles tab)