Funds
Significant losses sustained in recent weeks have prompted Mew York hedge fund Arrant Global to close down operations, according to a report by The Wall Street Journal.
The firm’s flagship long-short tech-focused equity strategy, which lost 8.5 per cent last year, has dropped by double digits so far in 2022, in line with the 12 per cent loss chalked up by the Nasdaq Composite over the same period.
A decision to increase bets on Russian stocks just prior to the country’s invasion of neighbouring Ukraine resulted in big losses for a BlackRock hedge fund, according to reports by Bloomberg and BusinessInsider.
The investment firm’s Emerging Frontiers Fund dropped 10 per cent in February, its worst trading loss since inception over a decade ago, and is now down 7 per cent for the year to date, according to the reports, which credit the information to unnamed sources and an investor document seen by Bloomberg.
The fund’s long Russia bet accounted for 9 per cent of its total gross assets
Brook Developed Markets Fund, a hedge fund at a unit of Odey Asset Management, has marked its Russian equity exposures down to “close to or at zero” after the country’s invasion of Ukraine, according to a report by Bloomberg.
Manager James Hanbury has written a letter to investors apologising for the losses after the USD500 million fund saw a 10.6 per cent fall last month, one of the largest since it launched nine years ago.
Hanbury’s woes, contrast with those of fellow Odey Asset Management money manager Crispin Odey whose main European Inc hedge fund ended February up 7.9 per
Digital asset investment products saw inflows of USD127 million last week, an uptick to on the previous week, suggesting investors remain supportive of digital assets despite the recent geopolitical events, according to the latest digital assets fund flows weekly report from CoinShares.
In a similar manner to the previous week, the positive sentiment was centred in North America with inflows totalling USD151 million versus outflows in Europe totalling USD24 million.
Bitcoin saw inflows totalling USD95 million last week, the largest single weekly inflows since early December 2021.
Ben Melkman’s Light Sky macro hedge fund is to close according to a report by The Wall Street Journal.
The fund, which attracted investor interest from several other hedge fund managers including Steve A Cohen and Daniel Loeb, started trading in March 2017 and had around USD1 billion under management.
The fund has averaged returns of around 1 per cent a year since launch, although its made around 7 per cent a year in the three years to the end of December 2021.
The report says that Melkman, who made his name at Brevan Howard Asset Management thanks to a
Hedge funds have had a better start to 202 than mutual funds according to a report by MarketWatch, outperformed the S&P 500 up to the end of February.
The report quotes BofA Global Research as revealing that while US mutual funds that focus on large-cap stocks are trailing their benchmarks, hedge funds are off to a “great start” so far in 2022.
On average, hedge funds gained 0.2 per cent last month while the S&P 500 lost 3 per cent, according to the report.
Alex Karnal, a former partner at Deerfield Manager is set to complete one of the biggest US hedge fund launches in years in April, with the debut of a new USD3.5 billion fund, according to a report by Bloomberg.
The report quotes unnamed sources as saying that Karnal’s new Connecticut-based firm Braidwell will make public and private bets on the healthcare sector with a particular focus on biotechnology, pharmaceuticals, and medical devices and diagnostics.
The fund will launch on 1 April, and as well as making long and short wagers on stocks and convertible bonds, as much as 20 per
French systematic long/short equity hedge fund Quantology Capital Management’s flagship fund was up +4.0 per cent in February, while the Nasdaq 100 and S&P 500 were down -4.6 per cent and -3.0 per cent, respectively over the month.
An investor update from the firm says the strategy benefitted from high levels of dispersion and elevated volatility in the equity space.
Quantology’s says its long book performed very well, remaining flat, again when stocks were down 3 per cent to 4.6 per cent. The short book gained 8 per cent or roughly double the losses of the equity indices. Coming
Russia’s invasion of neighbouring Ukraine and the ensuing market turmoil has hit Brook Asset Management – a division of Odey Asset Management – hard, with the hedge fund down 12.6 per cent over the past week, according to a report by Bloomberg.
Data compiled by Bloomberg and an investment data document reveal the loss to be one of the biggest since manager James Hanbury’s LF Brook Absolute Return Fund first began trading over ten years ago, and is in stark contrast to the 10 per cent annual gain chalked up last year, with the fund now down 2.3 per cent
Brown Advisory, an independent and privately held global investment management firm that oversees more than USD139.3 billion in client assets and USD39.4 billion in sustainable assets, has unveiled its Sustainable International Leaders strategy.
The strategy seeks to invest in an actively managed, concentrated portfolio of companies outside the US that Brown Advisory considers leaders in their sector or country, have sound ESG risk management practices and sustainable business advantages, and therefore, have the ability to compound returns for investors over time. The strategy aims to outperform the FTSE All-World ex-US Index over the economic cycle, while simultaneously generating positive impact
