Funds
Hedge funds have been increasing their short bets against cryptocurrency miners, in expectation of further fallout from the collapse on Sam Bankman-Fried’s FTX digital assets empire, according to a report by the Financial Times.
The price of bitcoin has tumbled by nearly two-thirds so far this year, while the cost of operating the energy-intensive computers used by bitcoin miners has risen sharply on the back of global power increases, leading some hedge fund managers to wager that some companies could soon run into problems.
The report cites data from Nasdaq as revealing that short bets against one of the the
Digital asset investment products saw outflows totalling $30 million last week, with outflows seen across most asset types, according to the latest Digital Asset Fund Flows Weekly report from CoinShares.
Asia-based hedge funds are on course to chalk up their worst annual performance figures in 12 years, with long-short stock-picking funds having been caught out by volatility in China, according to a report by Reuters.
While Asia nmacro strategy funds, like their counterparts elsewhere in the world, have benefited from big global shifts in interest rates, the report cites a series of China factors that have proved problematic for other hedge funds including China unexpectedly loosening its rigid Covid-19 movement and testing controls, and. President Xi Jinping’s consolidation of power is another factor that has impacted the performance of equity
Despite notching up average annualised returns of -6.9% up to the end of September, credit hedge funds are finding favour with investors with 41 per cent saying they want to increase their exposure to the strategy, according to report by Institutional Investor.
Bad bets on everything from currencies to commodities saw Brazil’s top-performing hedge fund over the past two years, the SPX Raptor Fund, record a record monthly loss in November, according to a report by BNN Bloomberg.
The report cites a note sent to investors by the fund’s manager, SPX Capital, as revealing that the fund chalked up its biggest monthly decline since launching in December 2010, with an 11% fall after fees.
“The main negative contributors were rates and foreign-currency” bets, the fund wrote in the note. Wagers in equity, commodities and credit markets also led to losses, although to
The new digital assets hedge fund launched by Brevan Howard Asset Management has come through this year’s cryptocurrency crash relatively unscathed, according to a report by Bloomberg, restricting losses to single figures.
The report cites unnamed sources as revealing the the BH Digital Multi-Strategy Fund is down about 5% YTD, although it is yet to deploy all of the $1 billion it raised for investments.
Cryptocurrency hedge funds tracked by Bloomberg, meanwhile, slumped 43% on average as bitcoin’s roughly-60% decline and the recent collapse of crypto exchange FTX caused turmoil in the digital assets space.
Losses in single figures
Faltering oil prices in the second half of the year have impacted commodity trader Pierre Andurand’s biggest hedge fund, with year to date gains having been pared to around 50% following stellar performance earlier in the year, according to a report by Bloomberg.
The managed futures industry posted a -1.33% loss in November following three consecutive months of gains, according to the Barclay CTA Index, compiled by BarclayHedge. Year-to-date, the managed futures industry has returned 8.24%, posting gains in nine of the past 12 months.
The Oregon Public Employees Retirement System has committed a total of around $1.6 billion to 11 alternative investment funds, including hedge funds, according to a report by Pensions & Investments Online.
The allocations were confirmed by the Oregon Investment Council Council, which oversees the pension system’s investments, and the Oregon Common School Fund which it also oversees.
The new commitments include several hedge fund investments including a total of $255 million to Bridgewater Pure Alpha Major Markets II – $250 million from the pension fund and $5 million for the Common School Fund. A total of $207.5 million has also
Franklin Templeton has launched the Franklin K2 ActusRay European Alpha UCITS Fund, the latest addition to its Luxembourg-domiciled Franklin Templeton Alternatives Funds 2 range.
