Funds
Some computer-driven quant funds are benefitting from the current turmoil in the cryptocurrency markets, according to a report by The Financial Times.
Despite trillions having been wiped from the total value of cryptocurrencies recently causing many investors and funds to incur big losses, some algo-driven funds have banked big returns on the declines in the value of major cryptocurrencies including bitcoin, ether and luna.
The report cites Lehman Brothers and Morgan Stanley trader Jay Janer, the founding partner of KPTL Arbitrage Management in the Cayman Islands, as being among the group of investors to have benefited.
Jahner’s Appia fund banked
Digital asset investment products saw outflows totalling $39 million, according to the latest Digital Assets Weekly Fund Flows report from CoinShares. Total assets under management (AuM) are now at their lowest point since February 2021, at $36 billion, a 59% from the November 2021 peak.
Bitcoin saw inflows totalling $28 million last week and looks to be benefitting from weak prices with month-to-date inflows at $46 million.
Short-bitcoin AuM peaked to an all-time-high of $64 million at the beginning of last week but saw record outflows totalling $5.8 million suggesting negative sentiment is close to its peak.
US quant investment firm Two Sigma Investment’s China private fund business – the Chinese equivalent of a hedge fund – is seeking to raise about RMB1.2 billion ($180 million) for its managed futures product, according to a report by Bloomberg.
The move comes on the back of an annualised 22 per cent gain for the fund, which launched two years ago and invests in commodities and financial futures, and would add significantly to the RMB3.8 billion in assets the firm has pulled in since early 2020.
The report also cites unnamed sources as revealing that Shanghai-based Two Sigma also has
Beleaguered cryptocurrency hedge fund Three Arrows Capital Ltd is considering a number of options to tackle its current problems including a sale of assets and a bailout by another firm, according to a report by The Wall Street Journal.
The net asset values of several funds run by Dan Bin’s Shenzhen Oriental Harbor Investment Management Co – one of China’s best known money managers – have shown a sudden rise in volatility indicating that the firm may be rebuilding positions after liquidating almost all of its holdings earlier this year, according to a report by Bloomberg.
Cryptocurrency hedge fund Three Arrows Capital has failed to margin calls for extra cash from lenders after a series of bets on digital assets backfired, according to a report by The Financial Times.
Three Arrows has become the lates victim of the cryptocurrency credit crunch falling big falls in the value of former star performers including bitcoin and ether. The Singapore-based firm is one of the biggest players in the cryptocurrency investment space and is active on both lending and trading platforms.
The report cites BlockFi, as US-based crypto lender, as one of the companies to liquidate – by mutual
Hedge fund returns improved month-on-month in May, however, they remained in negative territory amid persistent market volatility, according to the latest monthly Hedge Fund Report from the Citco group of companies (Citco).
Ray Dallio’s Bridgewater Associates is now the biggest short-seller of European stocks having place bets of at least $6.7 billion against European companies, according to a report by Reuters.
The report cites data group Breakout Point for the data that suggest that the hedge fund is pessimistic about the outlook for European stocks, although the trades could also be part of a hedging strategy.
The bets includes a $1 billion wager against semiconductor company ASML Holding, $752 million position against energy company TotalEnergies, and a $646 million bet against drugmaker Sanofi.
Using Bridgewater’s public disclosures, Breakout Point calculated that the
The Andurand Commodities Discretionary Enhanced Fund – commodities trader Pierre Andurand’s largest hedge fund at around $1 billion in managed assets – is up 162% so far this year, according to a report by Bloomberg.
The bumper gain comes on the back of an impressive 82% return in 2021.
Andurand’s older $750 million Commodities Fund meanwhile, is up 41.5% so far in 2022, while the newerAndurand Climate and Energy Transition Fund, which launched last summer, is up 14%.
The Bloomberg Commodity Spot Index, by comparison, has notched up a gain of 30% so far this year.
Tiger Legatus, a hedge fund backed by Tiger Fund Management legend Julian Robertson, has brought the curtain down on 13 years of trading following the worst ever start to a calendar year for equity funds, according to a report by The Financial Times.
The New York-based fund, which was founded by former Viking Global Investors trader Jesse Ro is said to have informed investors by letter of the decision to cease operations and return capital.
The FT reports that equity funds have lost an average of 8 per cent in the first five months of 2022, recording worst performance than
