Digital Assets Report

Funds

L1 Capital, a prominent Australian activist hedge fund firm launched by former Macquarie investment banker James Hawkins, has recorded a gain more than 42% with its Catalyst Fund since the strategy launched in 2021, according to a report by Bloomberg.
Stock-picking hedge funds were the best performing hedge fund strategy in Q1 2024 with an average 7.9% gain, but they still trailed the S&P 500 and Nasdaq Composite Index, which put on 10.6% and 9.3% respectively, according to a report by Bloomberg.
Brevan Howard Asset Management’s cryptocurrency fund, BH Digital, which manages around $1.7bn in assets, returned 34.5% in the first three months of the year, bringing total gains since it debuted in March 2022 to nearly 51%, according to a report by Bloomberg.
Quant hedge fund firm DE Shaw’s statistical arbitrage Valence fund has started the year strongly with a 9% Q1 gain, beating the average 5% hedge fund gain for the first three months of the year, but falling shy of the S&P 500’s 10% increase, according to a report by Business Insider.
Global hedge funds sold off US stocks at a faster pace than they bought for the fifth week in a row last week, with much of the sell-off coming in communication services stocks and exchange-traded funds, according to a report by Reuters citing Bank of America data.
Digital asset investment products continued to benefit from positive investor sentiment last week with inflows totalling $646m, according to the latest Digital Assets Fund Flows Weekly report from CoinShares.
London-based macro hedge fund Rokos Capital Management saw a 12.5% gain in Q1 2024, with a 3.8% gain in March alone, benefiting from other macro traders’ wrong-way bets on the US Federal Reserve potentially lowering interest rates, according to a report by Bloomberg. 
A second straight year of losses has prompted Antara Capital, a $1.3bn hedge fund backed by Blackstone, to block redemptions from its illiquid assets by placing them in a so-called side-pocket, according to a report by Bloomberg.
Switching holdings from bitcoin and ether to solana and other ‘minor’ cryptocurrencies helped digital assets hedge fund firm Pantera Capital’s roughly $300m Liquid Token Fund record a 66% Q1 return, according to a report by Bloomberg.
Hedge funds extended their Q1 performance surge through March, led by macro strategies, which posted their best month since March 2022 and their strongest quarter in over 20 years, according to the latest data from HFR.

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16 May, 2024 – 8:30 am

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