Funds
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.
The report cites research by LCH Investments, a fund of funds firm that tracks returns and is part of the Edmond de Rothschild Group, as showing that the overall losses came despite some firms, including Ken Griffin’s Citadel, chalking up bumper gains.
Citadel made a record $16 billion profit investors last year – the largest ever annual gain for a hedge
Ken Griffin’s Citadel is now the best ever performing hedge fund in terms of annual returns having chalked up a $16 billion profit for investors in 2022 on the back of a raft of winning wagers including bonds and equities, according to a report by the Financial Times.
Activist investor Chris Hohn’s TCI Fund made its first loss in 13 years in 2022 with the fund ending the year 18% down as Stockmarket prices tumbled during a widespread sell-off in growth stocks, according to a report by Bloomberg.
The report cites an unnamed source as confirming that the fund made only its second ever annual loss since it launched in 2004 as big bets on tech giants including Google parent Alpahabet Inc and Microsoft Corp tanked.
TCI, which builds stake in companies and then agitates for change to increase value, runs a long-biased portfolio spread over a small
Hedge funds raced to cover their Treasury short positions ahead of the release of inflation data for December as speculation mounted about a looming recession and a slow down in rate hikes, according to a report by Bloomberg.
China’s sudden easing of its strict Zero Covid restrictions and the stock market rally that followed, helped prevent Asia hedge funds from chalking up their first year of double-digit losses since the global financial crisis of 2008, according to a report by Bloomberg.
A host of big name funds, including those run by Aspex Management, Triata Capital, Yunqi Capital and Brilliance Asset Management, cut a significant proportion, if not all, of their 2022 losses during the final two months of last year.
The report cites data from Eurekahedge Pte as revealing that regional hedge fund returns finished the year down
Larger hedge funds outperformed their smaller peers last year for the first time since 2018, according to a report by the Wall Street Journal.
As evidence, the report cites the performance of the HFRI Fund Weighted Composite Index, which gives equal weight to funds of all sizes, and fell -4.25% in 2022, and the HFRI Asset Weighted Composite Index, which gives more weighting to the larger funds, and rose 0.97%.
This marks a turnaround from recent years when smaller funds have bettered their bigger brethren. The composite index rose 10.16% in 2021, compared with a 7.39% gain for the asset-weighted
Crypto currency trading hedge funds tracked by index provider BarclayHedge ended 2022 down almost 50%, according to a report by Reuters, with the fallout from the collapse of Sam Bankman-Fried’s cryptocurrency exchange FTX still impacting the industry.
The report cites the Cryptocurrency Traders Index, an index of 47 firms – the names of which are kept secret by BarclayHedge – as having seen a loss of 47% for the year.
Despite last year’s big decline though, the index has seen worse performance during the last five years, with losses topping 60% in 2018.
Trian Fund Management, the activist hedge fund investment firm currently pushing for changes plus a seat on the board at Walt Disney Co, lost 10.6% last year as many hedge funds incurred losses on the back of market volatility, according to a report by Reuters.
The managed futures industry cut its monthly loss to -0.13% in December, following a -1.33% loss a month earlier, according to the Barclay CTA Index, compiled by BarclayHedge. CTAs were in positive territory for the year, however, posting a 7.33% return for 2022, riding a string of gains in eight of the past 12 months.
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.
