EDL Capital

We are pleased to share that EDL Capital is nominated for Best Macro Hedge Fund Manager at Institutional Investor's 21st Annual Hedge Fund Industry Awards. Qualified allocators can vote until April 22nd, link in the article below.

Our global discretionary macro strategy is outperforming in a challenging year. Read more in this Bloomberg News article. #hedgefunds #globalmacro #EDLCapital

"Global Macro returns to the spotlight" - Interesting analysis by Iain North, CFA at JANA Investment Advisers. #hedgefunds #globalmacro

This recent study - authored by our colleagues Patrick Coggi, Group Executive Board Member and Carlo Raimondo, PhD, Senior Financial Analyst, together with Francesco Franzoni, Professor at USI Università della Svizzera italiana and Senior Chair with the SFI Swiss Finance Institute - analyses the rationale for including hedge funds in the asset allocation of Swiss pension funds. Based on the study of a ten-year track record, it emerges that allocating a portion of assets to an “alternative equity” mandate similar to the one presented in the study can be a valid investment strategy for pension funds seeking positive returns while minimizing risk, and an alternative to a risk overlay strategy. This approach should be considered, in particular, by undercapitalized pension institutions that do not have fluctuation reserves and thus have a limited risk budget. Specifically, it is observed that a portfolio with an allocation to #hedgefunds achieves a significantly lower beta than a portfolio without hedge funds (0.59 vs. 0.64). This difference explains why an allocation to hedge funds limits losses during stock index drawdown periods and reduces participation in upturns in the opposite case. In terms of performance attribution, the choice of weights for the underlying strategies of this “alternative equity” mandate has made a significant contribution. The Global Macro strategy, which was preferred by the manager during the period under consideration, allowed containing the portfolio’s volatility and diversifying real estate risk, which is notoriously not negligible in the portfolios of #Swisspension funds. Published by VPS Verlag Personalvorsorge und Sozialversicherung AG – Editor in Chief Kaspar Hohler.