Episode rides ‘risk on/risk off’ macro wave
Wed Jan 26, 2011
After bouncing back from a poor 2008, long-running M&G manager Dave Fishwick believes his unusual strategy is well placed to exploit the febrile market environment that could persist for some time yet
The performance of Episode, the long-running $2.5 billion
global macro strategy run by Dave Fishwick and Eric Lonergan at
UK insurer Prudential’s M&G asset management
subsidiary, illustrates just how challenging an environment
2010 turned out to present for many macro managers.
Episode ended the year up 4.83% after a topsy-turvy and very
volatile year that saw huge dispersion in returns from macro
funds amid a persistently changing 'risk on/risk
off’ sentiment among investors and market
The Episode strategy is an unusual one, aiming to exploit
the 'emotional’ aspects of markets and asset
classes in terms of their periodic mis-pricings and relying on
human behavioural analysis and market/investor psychology as
well as a quantitative multi-asset-class valuation
And its progress last year embodied a year where it was very
difficult for both discretionary and systematic macro managers
to generate sustained positive...
ISSN: 2151-1845 / CDC10004H
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