FUND PERFORMANCE

Larger hedge funds dominate industry landscape, as 2020 proves to be the “year of outsourcing”

Larger hedge funds dominate industry landscape, as 2020 proves to be the “year of outsourcing”

The biggest hedge fund firms topped performance charts and drew the most investor capital over the course of last year, with 2020 proving “the year of outsourcing” for a range of middle office functions, as the industry demonstrated its value to investor portfolios, according to new analysis by Citco.

HOT OFF THE PRESS

Key considerations for hedge fund succession planning – Part II: Leadership transition involves a maze of complexity

Key considerations for hedge fund succession planning – Part II: Leadership transition involves a maze of complexity

The transition of leadership in the private world of hedge funds is incomparable to corporate America, requiring both a deft touch and significant forward planning. The founders of successful hedge funds will have invested years, often decades, building the business in their image. When it comes time to handing over the keys to someone else, it can be a hugely emotional affair so picking the right leadership has to be approached very carefully.

INNOVATION

‘Twitterisation’: How social media is reshaping asset management firms' business models

‘Twitterisation’: How social media is reshaping asset management firms' business models

Social media networks are now “critical communications channels and sources of real-time data” for investment managers, presenting myriad opportunities – and potentially huge risks – to firms, and dramatically reshaping the way they trade portfolios, build investment ideas and communicate with clients, according to a major new study by SEI.

OUTLOOK

Man GLG’s Flamand urges market neutral tilt as inflation risk looms amid equities “euphoria”

Man GLG’s Flamand urges market neutral tilt as inflation risk looms amid equities “euphoria”

Inflation is the next big risk facing the nascent economic recovery, and equity investors should be “exceptionally selective” in their exposures, tilting portfolios towards market neutral strategies that will help avoid excessive beta risk, says Man Group’s Pierre-Henri Flamand.

TRADING

Citadel’s Ken Griffin calls for shorter settlement times in trades following GameStop debacle

Citadel’s Ken Griffin calls for shorter settlement times in trades following GameStop debacle

US hedge fund titan Kenneth Griffin (pictured), founder, CEO and co-CIO of Citadel, says the recent GameStop trading frenzy demonstrates the need to overhaul the settlement process in markets, and wants a shorter timeframe for settling trades, along with more transparent capital models.