Tag Archives: Anchorage Capital Group

New York Hedge Funds: Investment Strategies

For investors, to select a hedge fund with which to work, there are a whole slew of varying strategies employed.  Investors should thus figure out which strategy they align with the most and thereafter pick a firm with which to invest.

Meanwhile, there is some good news for dividend investors in the US right now.  As noted in a recent Forbes article by contributor Ky Trang Ho, the S&P  500’s dividend-paying stocks returned 15.6% on average in 2016; this was double of the 7.6% average figure reported for  non-payers, according to CFRA, a global equity and fund research firm.

Kevin Ulrich is co-founder, CEO and Portfolio Manager of Anchorage Capital Group, LLC, a firm that focuses on single fund investors, pooled investment vehicles and making investments in the public equity and fixed income markets throughout the US and Europe.  Long- and short-term strategies are employed with both internal and external data used to make investments.  In the past, Kevin Ulrich has said that “yield compression will lead to short opportunities.”  The company also looks for distressed investment opportunities and, using their strategy has provided clients with success as in the case of TXU Energy, which it helped avoid bankruptcy.  It did this by structuring a transaction which had a substantial upside should the company not default before a set date (which it did not).

Other investment fund companies employ different strategies for their clients.  For example, Och Ziff Capital Management and BlackRock Advisors.  As founder, chairman and CEO of Och Ziff, Daniel Och provide clients with a “multi-strategy approach to investing across multiple strategies and geographies.” As such it seeks to ensure the interests of its fund investors is aligned to the structure of its business.

Raymond Dalio, founder and CEO of Bridgewater Associates, works via what he claims to be a “more practical” understanding of the ebb-and-flow economic structure, using an unconventional management style which avoids focus on supply and demand theories.  He rejects the notion that monetary policymakers have the capacity to control inflation just by controlling the money supply.  He thus developed and employs the MV=PQ Formula (whereby M is money; V is velocity [how many times annually the average dollar is spent]; P is prices of goods and services and Q is quantity of goods and services.)  Using this, the firm works on the theory that if V is constant and M is increasing, there must be an increase in either Q or P.

Therefore, investors would be well advised to seek to understand the firm they have chosen as well as the current economic climate.