Search this website. You can use fund codes to locate specific funds

Authors

  • 23/07/2020
    Corporate News
    Eoin Murray
    Federated Hermes has appointed two new hires to its Impact Opportunities team as client demand for sustainable investment solutions continues to surge. Reporting to Ingrid Kukuljan, Head of Impact Investing, Amélie Thévenet and Jordan Patel will be joining the firm’s London office in September and July respectively.
  • 01/06/2020
    Corporate News
    Eoin Murray
    Kunjal Gala has been appointed Lead Portfolio Manager for the Hermes Global Emerging Markets Fund and the Hermes Global Emerging Markets SMID Equity Fund with effect from 1st September 2020.
  • 11/05/2020
    Corporate News
    Eoin Murray
    The longest equity bull market in history (at least for the US) came to an end on the 19th February, just a couple of weeks short of its 11th birthday. .
  • 28/04/2020
    Corporate News
    Eoin Murray
    The scale of the pandemic and the response elicited has shone the light firmly on the ‘S’ of Environmental, Social & Governance (ESG) factors, but all three issues have come to the fore as the crisis has developed.
  • 15/03/2019
    Corporate News
    Eoin Murray
    Are US China trade tensions really about steel, Jack Daniels and soy beans?
  • Eoin Murray
    In his latest note, Eoin Murray, Head of Investment at Hermes Investment Management, discusses the four words he dreads more than anything. There are plenty of words people in investment use to convince themselves – or others – that things are going to be OK. “This trade can’t fail”, “the market is rational”, “equities always go up”, are prime examples. But for me, the worst is: “This time it’s different.” Why? It invariably isn’t. The latest use of this maxim is by people unconcerned about the possibility of the yield curve inverting. The yield curve tracks short and long-term interest rates that fuel the traditional banking model. Short-term rates are usually lower, so it is cheaper for banks to take deposits, and the longer-term rates are higher, so they can issue loans and take a turn on the difference. Any disruption to this system sees the model break down. An inversion of the yield curve occurs when short-term interest rates are higher than long-term ones – it has been a reliable predictor of recessions. Of course there are many different ways of measuring the steepness of the yield curve, or the term spread. A recent paper by the Federal Reserve Bank of San Francisco suggests that it doesn’t actually matter whether we use 30-year minus 3-month, 10-year minus 2-year, or even attempt to include expectations:
  • Eoin Murray
    “There are as many worlds as there are kinds of days, and as an opal changes its colours and its fire to match the nature of a day, so do I.” In 1960, Nobel Prize-winning US author John Steinbeck set out on a road journey around his home country to see what he could see; to note any changes in the vast nation he hadn’t observed up close for decades. Aged 58 and in ill-health, Steinbeck was nonetheless willing to confront the reality of a rapidly-changing US from the driver’s seat of a jerry-built house truck and only a ‘middle-aged poodle’ called Charley for company. While his best-selling recount of the trip was tinged with nostalgia and tips for poodle maintenance, the writer didn’t let the past blot out a clear-eyed view of the present. “A journey is a person in itself; no two are alike,” Steinbeck wrote. Investors would do well to bear this advice in mind as they venture through the second half of 2018. In the latest Hermes Market Risk Insights report, Journeying through a changing risk environment, Eoin Murray, Head of Investment at Hermes Investment Management, explores the six key risks investors must navigate through during the latter part of the year.
  • Eoin Murray
    Eoin Murray, Head of Investment at Hermes Investment Management, discusses the recent ‘quantmare’ which took place in June: Ever had a recurring nightmare? Markets are having one right now. In August 2007, a small subsection of the global markets was hit by a violent sell off that preceded the financial collapse the following year. Those who lived through this episode still bear the scars. Market neutral strategies, which formed the liquid element of many multi-strategy hedge funds that were holding piles of illiquid credit, became the go-to element for fire sale in their portfolios – the easiest stuff to liquidate was equity factor exposure (today’s systematic beta). As they did so, all factors started moving against these market neutral funds – including the one I was running at the time. The biggest fund to be hit was Goldman Sachs' Global Alpha. It had around $12bn in assets and was several times leveraged and prompted Goldman’s chief financial officer David Viniar’s famous quote: “We were seeing things that were 25-standard deviation moves, several days in a row” (sic!). The fund closed in 2011, with a mere $1.6bn left.