Funds
The hedge fund industry returned to net outflows in February with USD8.1 billion in redemptions, a reversal from January’s USD21.2 billion in inflows.February’s redemptions represented 0.2 per cent of industry assets, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions.
A February trading loss of USD57.9 billion brought total hedge fund industry assets to nearly USD3.21 trillion as February ended, down from USD3.26 trillion at the end of January.
February’s redemptions were driven largely by USD8.9 billion in outflows from hedge funds in the UK and its offshore islands and USD1.2 billion from funds
Future rises in the cost of natural gas following the recent oil price crash may squeeze utility companies’ profits, with US names potentially proving a lucrative short bet for hedge funds.
Horseman Capital Management, the London-based contrarian long/short manager led by Russell Clark, believes that US power companies – which have steadily shifted from coal to natural gas as a result of cheaper prices since 2008 – may suffer from any imminent reversal.
US natural gas futures, in steady decline since their 2008 high, recently rose following last month’s oil price crash.
But while cheaper natural gas has helped foster
Financial information firm Refinitiv has unveiled key enhancements to its ESG scoring methodology, making its company scores “more data driven than ever”. Accounting for industry-based materiality weighting of metrics, with minimal company size and transparency biases, the updated methodology allows investors and companies to more objectively conduct industry peer-comparisons.
Refinitiv ESG scores are designed to transparently and objectively measure a company’s relative ESG performance, commitment, and effectiveness across 10 main themes (emissions, environmental product innovation, diversity and inclusion, human rights, shareholders, etc) based on publicly reported data.
The enhanced ESG scores are a uniquely effective way to assess materiality across industries,
Hedge fund solutions business Titan Advisors is to assume the management of several of Alternative Investment Group’s funds with Sam Sussman, Portfolio Manager and Head of Investment Strategy at Alternative Investment Group, to join Titan and take the lead in managing those funds.Sussman says: “I look forward to working with Titan’s experienced investment team and continuing to deliver for our investors the strong risk-adjusted returns that have always defined our strategy. The investment approach will not change as a result of the transaction and the Funds will continue to be managed to bring our investors the consistent results that we
Hedge funds suffered their second biggest loss on record last month, tumbling 7.25 per cent on average as the sharp economic downturn following the Covid-19 outbreak took its toll on performance.
With markets in turmoil resulting from the economic impacts of the coronavirus, managed futures made good on their diversification thesis and gained 1.94 per cent in March according to the Barclay CTA Index compiled by BarclayHedge, a division of Backstop Solutions. Year-to-date, CTAs have gained 1.88 per cent.
“Fear driven selling picked up steam in March and continued to drive equity and energy markets sharply lower. At its intra-month low point, the S&P 500 Index was down 26 per cent and crude oil dropped to levels not seen for 18 years,” says Sol Waksman, president of BarclayHedge. “At mid-month, investors piled
In a context where risk assets bottomed on 23 March, most alternative strategies rebounded in recent weeks, according to the latest Weekly Brief from Lyxor’s Cross Asset Research Team.Global Macro and Event-Driven strategies benefitted the most from the fall in risk aversion, while CTAs underperformed due to their defensive positioning.
Within the Global Macro space, Discretionary and EM sub strategies rebounded the most, having suffered more during the selloff. Within the Event-Driven space, both Merger Arbitrage and Special Situations did well.
Merger Arbitrage has started to rebound since mid-March, earlier than others, when financial stress lifted deal spreads to very
Algebris Investments is seizing on opportunities in strong, strategically important companies globally that are benefitting from government support during the downturn, as central banks “drop all their taboos” to support the global economy.
Portfolio manager Alberto Gallo, who runs the Algebris Macro Credit Fund, said that while the market outlook is “bumpy”, there are “very good returns” available in credit markets for patient investors.
Gallo’s strategy – which trades bank debt, sovereigns, and investment grade and high yield corporate debt, has so far advanced 2.68 per cent month-to-date.
Having initially remained cautious throughout January and February, putting more than half
The hedge fund industry tracked the fates of other markets and broader economies roiled by the novel coronavirus pandemic in March, posting an 8.03 per cent loss for the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. The hedge fund industry fared much better than the S&P Total Return Index which was down 16.2 per cent for the month.
Year-to-date, the hedge fund industry was down 10.83 per cent through the end of March. The S&P 500 Total Return Index was down 19.6 per cent over the same time period.
All but four
Named after the riverside district in central Moscow, Balchug Capital – the long/short emerging market equities and fixed income investment manager launched by David Amaryan in 2009 – focuses on event driven and value-based opportunities predominantly in Russia and the former Soviet Union.
