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Delivering Alpha: Turbulent times, but opportunities await

Big Data Download

Hedge fund heavyweights gathered Wednesday at the Delivering Alpha conference in New York, and it would seem that global economic turbulence continues to weigh heavily on the industry.

Chatter on the conference floor indicates that while Europe is slowly recovering as banks and Eurozone members work together to bring the currency block out of a years-old lurch, investing in China is treacherous because of a lack of transparency and state involvement in the economy.

“Big Data Download” spoke to Jack McDonald, president and CEO of Conifer Group, who said hedge funds have been moving away from interest-rate sensitive sectors such as homebuilders and REITs.

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Another area hedge funds are steering clear of are multinationals, due to the strength of the dollar during the past quarter. McDonald said it wouldn’t be a surprise to learn that earnings have been negatively impacted through foreign exchange. There has been a shift out of large cap multinationals such as Coca-Cola, Procter & Gamble and General Electric and a rotation into more U.S.-centric names, such as Middleby (MIDD) and CoStar Group (CSGP), according to McDonald.

The Conifer Group provides back office and fund administration for hedge funds It also serves as a broker dealer.

Disclosure: McDonald does not own any of the stocks mentioned.

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