Hedgeweek Americas Awards: Equity hedge funds weather the storm

Stormy seas

After the GameStop/Reddit short squeeze saga dealt bruising losses to several hedge funds, and global stock markets continue to be shaken by the ongoing Covid-19 pandemic, the Equities section is set to be one of the most closely-watched categories at this year’s Hedgeweek Americas Awards.

Three strategies have been nominated in the Best Equity Hedge Fund (over USD500 million) category at this year’s event, which take place in New York on 21 October: Anson Funds Management’s Anson Investments Master Fund, Malabar Investments’ Malabar India Fund and Peconic Partners’ Peconic Grenadier Fund.

Launched in 2007, Anson’s flagship strategy combines elements of long/short equity, event driven, merger arbitrage and capital structure arbitrage investing. The Malabar India Fund specialises in small-to-midsized companies in India that are leaders in their respective niche areas, trading a concentrated portfolio of names built on in-depth proprietary research. The long-running Peconic Grenadier Fund invests in global securities long and short using a range of hedging and derivatives strategies.

Elsewhere, the three managers in the running for the Best Equity Hedge Fund (up to USD500 million) award are: Atyant Capital Management’s Atyant Capital India Fund 1, Loyola Capital Management’s Loyola Capital Partners, and TAH Management/Tenth Avenue Holdings’ TAH Core Fund.

Overall, equity hedge funds overcame the tumultuous events of 2020 in style, notching up an impressive near-18 per cent annual gain. This year, meanwhile, managers have successfully navigated the coordinated billion-dollar raid by amateur online traders against short positions in GameStop, as well as continued bouts of market volatility and uncertainty surrounding the Covid pandemic.

The sub-sector has generated returns of more than 11 per cent so far in 2021, outflanking the broader hedge fund industry, which is up 9.45 per cent to the end of July, according to Hedge Fund Research data.

Looking ahead, the outlook for equity-focused hedge funds remains finely balanced, according to Man FRM. Its third quarter outlook noted that while high dispersion is a positive, short squeezes and violent factor rotations remain “vulnerabilities” for the strategy.

The categories are among 29 fund manager awards to be announced at an exclusive presentation ceremony and industry networking event held at The University Club of New York on 21 October, which recognises and honours excellence among hedge fund managers and service providers in the Americas region.

Hosted by Hedgeweek, with fund manager data being provided in partnership with Bloomberg, the Awards – which are voted for by participants within the hedge fund industry itself – represent an important mark of recognition and respect among peers, investors, advisors, and counterparties.

To participate in the poll, please click here. For all information about the Hedgeweek Americas Awards, see here.

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Hugh Leask
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Editor, Hedgeweek