Funds
Hedge funds continued to rebound with even better weighted average returns in the first quarter of this year than Q4 2022, with Multi-Strategy and Equities funds continuing as the top performers, according to a data released by Citco.
Data from the fund administrator, which has over $1.8 trillion in assets under administration (AUA), saw an overall weighted average return of 4.49% in the first quarter of this year – up from 4.11% in Q4.
All fund strategies delivered positive returns with the exception of Commodities at -2.2% and Global Macro at -1.14%. Multi-Strategy and Equities funds bettered their Q4
Hedge funds lost 0.46% in March according to the gross return of SS&C Technologies’ GlobeOp Hedge Fund Performance Index for the month. Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index meanwhile, declined 0.56% in April.
“SS&C GlobeOp’s Capital Movement Index for April 2023 was -0.56%, consistent with quarterly asset allocation patterns,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies.
“The collapse of several US regional banks in March coupled with a Fed rate hike created a catalyst for higher market volatility. Hedge fund flows continue to be steady as they provide an attractive allocation
Digital asset investment products saw outflows totalling $30 million last week, bringing to an end a six-week run of inflows, according to the latest Digital Assets Fund Flows Weekly Report from CoinShares.
The outflows began on 14 April when bitcoin passed the ‘psychological threshold’ of $30,000, suggesting the most recent sell-off was a result of profit-taking, particularly in the absence of any macroeconomic triggers.
Ether, meanwhile saw inflows totalling $17 million last week, suggesting there is increasing confidence amongst investors following the implementation of the Shapella.
Total hedge fund capital increased for the second consecutive quarter in the first three months of the year, as investors allocated new funds while key banking and financial risks surged and the risk of a recession increased, according to the latest data from HFR.
Total global hedge fund capital rose to $3.88 trillion, a quarterly increase of over $50 billion. Investors allocated an estimated $9.1 billion in new capital to the hedge fund industry in Q1 2023, the first quarter of net asset inflows since the first three months of 2022.
The investable HFRI 500 Fund Weighted Composite Index
At least four new hedge fund firms are on target to raise more than $1 billion by the end of this year, as fundraising returns to levels not seen since before the global pandemic, according to a report by Bloomberg.
Minal Bathwal was a stand-out performer at Brevan Howard in March, making money as market turmoil saw the macro trading firm’s flagship fund rack up its largest monthly loss since 2003, according to a report by Bloomberg.
Diameter Capital Partners, a New York-based alternative asset manager focused on the global credit markets, has held the final close of Diameter Dislocation Fund II (DDF II) at its hard cap, with $2.2 billion of capital commitments.
London-based activist hedge fund Bluebell Capital Partners has criticised Glencore for “a lack of strategic thinking” as it campaigns for the mining conglomerate to spin-off its thermal coal business, according to a story by the Financial Review.
In a letter to Glencore’s board, Bluebell said that “shareholders, us included, would be reasonable in their criticism of this short-sightedness, complacency, and lack of strategic thinking for not spinning off thermal coal in a timely manner”.
Bluebell Capital believes Glencore has wasted 18 months arguing about the proposal before capitulating as part of a takeover of Teck Resources.
Bluebell Capital is a
West coast activist hedge fund Phase 2 Partners is targeting UK-listed asset manager Jupiter Fund Management, according to a report by The Times. Financial Conduct Authority disclosure data shows the San Francisco-based hedge fund is now a leading short-seller of Jupiter.
The US group has built a net short position of 0.59 per cent in shares of the London-listed asset manager.
Phase 2 is one of three hedge funds that have built short bets against Jupiter that are larger than the 0.5 per cent threshold required for investors to disclose their positions to the regulator.
Phase 2’s negative wager comes as
High-profile hedge fund manager Crispin Odey has halved his bearish position in Metro Bank since December, but remains the lender’s largest short-seller, according to a report by the Mail on Sunday.
Odey’s fund has held a negative wager in Metro Bank for a number of years, but the company now holds a “relatively unimportant” position in the portfolio, due to a low price and lack of liquidity in its shares, Odey told the Mail on Sunday.
Odey – whose holding now amounts to about 2 per cent of the shares available, worth almost £4 million – remains Metro’s largest short-seller.
