Digital Assets Report

Flows

Hedge funds delivered another month of impressive performance in July, with an overall weighted average return of 1.5% – one of their best months so far this year, albeit a slight decline from the 1.8% monthly high seen in June, according to data from Citco.
Investors are turning their backs on Ucits-managed hedge fund strategies with cash outflows in the first six months of the year totalling €19.4bn, way in excess of the total outflows seen in the whole of 2022, according to a report by CityWire.
Digital asset investment products saw inflows this week totalling $29m, likely due to recent US inflation data, which was slightly below expectations signifying that a September rate hike is less likely, according to the latest Digital Assets Fund Flows Weekly Report from CoinShares.
Pictet Asset Management has expanded its $9bn actively managed Total Return franchise with the launch of the Lotus Offshore Fund Ltd, an event-driven, special situations Asia Long/Short equity fund, offered as a quarterly-dealing Cayman-domiciled strategy.
Nearly two-fifths (39%) of asset owners in Europe that already invest in hedge funds are expecting to increase their allocations over the coming 12 months, according to the latest Cerulli Edge – Global Edition. 
Digital assets investment products saw outflows this week totalling $107m as the profit taking seen in recent weeks continued to gather pace, according to the latest Digital Asset Funds Flows Weekly report from CoinShares.
Large institutional investors, including pension funds and insurance companies, are looking to up their allocations to credit and equity hedge fund strategies between now and the end of the year, according to a report by Reuters.
A total of $600m has now been withdrawn from Odey Asset Management’s funds in the wake of multiple allegations of sexual assault and misconduct levelled against the firm’s founder Crispin Odey, according to a report by MorningStar.
European credit hedge funds are the most in-demand strategy among investors for the second half of the year, with a net 14% keen to up their allocations by the end of 2023, according to a report by Reuters citing data from a survey by Barclays.
Hedge funds continued their resurgence in Q2, recording positive performance for a third consecutive quarter, with equities and multi-strategy funds once again driving returns to take their YTD weighted average gains to over 10%, according to data from Citco.

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