SkyBridge Capital, the hedge fund firm found by Anthony Scaramucci, saw losses in its largest fund of 39% last year after investors asked the firm to return half their money after a series of failed bets on cryptocurrencies and now-bankrupt FTX, according to a report by Bloomberg.

SECTION 4

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Market commentators say sweeping write-downs on private assets next year could see institutional flows rebalance in favour of hedge funds as fees, liquidity and capacity issues focus minds.

SECTION 3

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Private wealth sentiment towards hedge funds appears decidedly mixed. But attractive liquidity and return profiles – coupled with burgeoning opportunities stemming from cryptocurrency upheaval – offer the chance of inflows.

SECTION 2

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Rising rates and an inflation squeeze are fuelling an increasingly downbeat economic assessment. For hedge fund investors, capital preservation is now critical.

SECTION 1

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With 60% of investors set to increase or maintain their hedge fund exposure in 2023, allocators are betting on macro managers to thrive amid rising rates, with the economic upheaval also fostering alpha opportunities in relative value arbitrage and distressed credit.

Investors withdrew $111 billion from hedge funds in 2022, the industry's third-worst year of outflows in 15 years, as a string of Federal Reserve rate hikes aimed at tackling soaring inflation pulled down asset prices, according to a report by Dow Jones.

Hedge funds lost a combined $208 billion of client cash last year, marking the biggest single-year decline for the industry since the global financial crisis of 2008, when combined losses totalled $565 billion, according to a report by Reuters.

Digital asset investment products saw $37 million inflows last week, although this was predominantly into short investment products (68%), according to the latest Digital Asset Fund Flows Weekly report from CoinShares.

Macro hedge fund LHG Capital Management (LHG) has surpassed $1 billion in assets under management (AUM), consolidating its position as one of the largest pure-play global macro hedge funds in the Asia-Pacific region. 

Charitable foundation the Wellcome Trust managed a return of 1.7 per cent from its £34.8 billion investment portfolio in the year to 30 September 2022, with some of its hedge fund allocations helping to offset big losses from equities, according to the Trust's latest annual report.