Funds
Investors are divided over how their hedge fund allocations have performed during the recent market crash, a new industry survey has found.
Investment consultancy bfinance polled 260 investors – including pension funds, insurers, foundations and endowments and family offices – in 28 countries, with assets totalling more than USD2.5 trillion.
The snap poll – which quizzed investors on a range of asset classes including hedge funds, fixed income, multi-strategy and alternative risk premia – aimed to gauge investor satisfaction with strategy performance during this month’s stock market collapse following the Covid-19 outbreak.
Of the 52 per cent of survey participants who
In the current climate, investors are looking for more defensive hedge fund strategies, capable of providing a predictable risk/return profile.
Alternative investment management team Evanston Capital Management’s (ECM) management team has completed the purchase of the minority equity stake owned by certain private investment funds affiliated with TA Associates (TA).
Activist hedge fund manager CIAM has written to shareholders of French reinsurer SCOR to warn of significant corporate governance deficiencies at the firm, and has called on the company to postpone its upcoming AGM.
Swedish hedge fund firm Bodenholm Capital is to close after Brummer & Partners, one of the major investors in its funds, announced its decision to withdraw capital.
Bodenholm One, a long/short equity hedge fund whose portfolio is built around fundamental stock analysis, is one of several strategies offered on Brummer & Partners’ flagship Brummer Multi-Strategy vehicle.
BMS has invested in Bodenholm since the latter’s inception in September 2015, and is understood to have held a stake of more than 40 per cent.
“For some time we have had a dialogue with Bodenholm about the fund’s management and risk where it
Hedge fund strategies of all stripes have posted sizeable losses so far this month as fears over the coronavirus outbreak ripped through global markets, new data from Hedge Fund Research shows.
The HFRX Global Hedge Fund Index, which takes the temperature of the overall global hedge fund industry, has lost 7.76 per cent so far in March.
The index, which comprises performance of all eligible hedge fund strategies within four principal strategies (equity hedge, event driven, macro/CTA, and relative value arbitrage), is now down 8.72 per cent since the start of 2020, according to HFR data.
Global equities posted steep
Once regarded as something of a fringe concern, responsible investing and ESG (environmental, social and governance) themes have steadily gained momentum in recent years, becoming a key component in many of the world’s biggest and most successful hedge fund strategies.
Portfolios built around value-based positions may be primed for a “significant” rally following the sustained global stock market slide, according to strategists at Man Group.
The UK’s Financial Conduct Authority last night (23 March) ruled out a ban on short selling, as many major hedge fund firms continue to weigh in with bearish bets to capitalise on the recent global market turmoil.
The UK market watchdog said on Monday there is “no evidence” that short selling – a core component of most hedge fund strategies – had driven recent market falls, adding aggregate net short selling activity is low as a percentage of total market activity and has decreased in recent days.
The notice comes as many well-known hedge fund firms including as Crispin Odey’s
Hedge funds’ survival challenge: Some reflections from last time
Hedge funds’ survival challenge: Some reflections from last time