This post first appeared on FloatingPath
A chart from Axioma shows global market risk and return profiles in developed and emerging markets over the last six months. Each nation’s bubble size corresponds with the size of its market.
One would assume that the bubbles would be sloping upwards, as higher returns require more risk. While that seems to be true of the developed markets, the emerging markets are much more scattered. China and Taiwan for example have both performed well given their reduced risk.
The smaller bubbles in the top right corner that are outliers are Greece and Ireland.
With the S&P 500 falling a double-digit percentage in the first half, most equity hedge fund managers struggled to keep their heads above water. The performance of the equity hedge fund sector stands in stark contrast to macro hedge funds, which are enjoying one of the best runs of good performance since the financial crisis. Read More