Cryptocurrencies and the digital asset ecosystem continue to move towards a mainstream institutional marketplace, with the number of institutional participants either already allocating or planning to allocate to the nascent asset class imminently.
Getting technology infrastructure correct on day one – and avoiding cutting corners despite budgetary pressures – is vital for start-up and emerging hedge funds, and staff with coding and tech backgrounds offer a “big step forward” during the initial launch period.
Despite the changing environment and challenges that Covid-19 has presented to operational and investor due diligence processes, sophisticated allocators still demand a “high level” of compliance and institutional infrastructure, according to Jenny Kim DeSmyter (pictured), Managing Director, Sales Strategy, SS&C Eze.
Problem solvers: How Brevan Howard spin-out quant platform SIGTech is building a “data refinery” for hedge funds and asset managers
Spun out from Brevan Howard Asset Management in 2019, SIGTech is a London-based fintech company providing what founder and CEO Bin Ren (pictured) describes as a “next generation quant platform”.
Argentium Digital Asset Management, a London-based cryptocurrency hedge fund founded by ex-JP Morgan and Credit Suisse manager Paul Frost-Smith, has committed to a carbon-neutral investment approach.
Hedge funds are stacking up gains this year as shuttered economies continue to unlock, with the industry navigating volatility and inflation to score its best January-to-May performance in two-and-a-half decades.
Hedge funds that trade emerging markets advanced almost 6 per cent in the first four months of the year, with China, India and Middle East specialist managers leading the pack, as gains from regional equities and cryptocurrencies drove profits in early 2021.
“Dysfunctional governance”: Activist hedge fund CIAM attacks French reinsurer SCOR’s succession plans
CIAM, the London- and Paris-based activist hedge fund, has launched a fierce attack on reinsurance firm SCOR SE’s corporate governance and management succession plans, and is calling for shareholders to vote against the re-election of chairman Denis Kessler and board directors and to oppose proposed remuneration policies at the company’s AGM later this month.
“Pandora’s box has opened”: Oil hedge funds target price shocks after Engine No. 1’s ExxonMobil triumph
The recent spate of victories by sustainability-focused shareholder activists against oil giants could spark renewed price volatility, heralding outsized opportunities for hedge funds betting on energy markets.
In light of the recent scandals resulting from mispriced assets, and the broader impact of Covid-19 on the global economy, the need for accurate financial and valuation reporting in private markets – where the underlying assets are largely illiquid and hard to value – is a germane issue for investors.
Well-known hedge fund bear Russell Clark is questioning how valuable bitcoin is under the stock-to-flow model, a framework traditionally used for precious metals such as gold and platinum, in light of recent sharp price volatility.
Investor caution over current inflation risks will see volatility remain at elevated levels, in turn offering rich investment opportunities for vol arbitrage trades, according to Dominicé & Co Asset Management, whose long-running flagship strategy continues to ride high this year.
Investor demand for data transparency is set to drive hedge fund firms’ operating costs up by more than 8 per cent over the next five years, hedge fund chief financial officers are predicting.
Emerging hedge funds must tread with caution in the face of increasingly complex operational infrastructure as their businesses gather pace and raise assets, speakers at Hedgeweek’s fourth annual HedgeweekLIVE North America Emerging Managers Summit said on Wednesday.
Digital assets’ disruptive potential could herald a seismic shift in markets, with crypto hedge funds bringing bumper returns uncorrelated to other asset classes – but investors remain wary of the patchwork of ad-hoc rules and regulations covering the sector.
Brummer & Partners, the long-running Swedish multi-strategy hedge fund firm, has named four new partners and is preparing to add two new sector-specialist long/short equity strategies to its flagship Brummer Multi-Strategy vehicle.
In this podcast, Alex Botte (pictured), CFA, CAIA, Client Solutions Research at Two Sigma and Venn, discusses what impact Covid-19 has had on the way risk is perceived, modelled, and ultimately managed within investor portfolios. And how next generation AI tools are helping to generate fresh insights on how factor risks are understood. During the discussion, Alex provides some examples of how Venn thinks about managing inflation risk exposures, crypto asset risk exposures, and what the latest developments are on translating ESG considerations into risk factor decomposition.
By Gian Kull (pictured), head of special situations and uncorrelated strategies at Syz Capital – Litigation is a costly procedure. Available resources can have a substantial impact on outcomes, and smaller players are often disadvantaged against large corporations. However, the growth in litigation finance is helping to balance the scales.
Alt Credit Council’s new Investor Manager Committee launch aims to strengthen private credit understanding
The Alternative Credit Council, the private credit affiliate of the Alternative Investment Management Association, has launched its Investor Manager Committee, a new initiative which aims to strengthen the ACC’s work on key areas where private credit market practice is still evolving, and foster better engagement between investors and asset managers in this burgeoning asset class.
As global economies prepare to unlock, potentially driving up inflation and interest rates, hedge funds’ low sensitivity to rate moves can help bolster investors’ portfolio performance, says K2 Advisors, the hedge fund investing unit of Franklin Templeton.
Discretionary macro hedge funds can expect a “fruitful opportunity set” over the next three months thanks to continued market unpredictability, but falling default rates have soured the Q2 outlook for distressed credit strategies, according to Man FRM’s quarterly hedge fund outlook.
More non-equity hedge funds are offering founder share classes in a bid to attract capital and get new launches off the ground.