Funds
Algebris Investments, Davide Serra’s multi-asset class hedge fund firm, says markets are “ripe with opportunities”, and is now preparing to deploy its “dry powder” liquidity in a range of asset classes it sees as benefiting from future fiscal stimulus and persistent low interest rates.
Alberto Gallo, portfolio manager of the firm’s macro credit-focused Algebris Macro Credit fund, believes current dislocations offer value for investors taking a long-term view.
“Even though the virus spread may lead to a recession, price discounts across most asset classes provide a large cushion for negative scenarios,” Gallo said, adding markets “are now ripe with opportunities.”
Financial technology platform iCapital Network, which provides financial advisers and their clients with access to a curated menu of private equity and hedge funds at lower minimums, has closed a USD146 million funding round.Read the full story at Wealth Adviser…
The SS&C GlobeOp Forward Redemption Indicator for March 2020 measured 3.11 per cent, up from 2.83 per cent in February.“SS&C GlobeOp’s Forward Redemption Indicator for March 2020 was 3.11 per cent, lower than the 3.49 per cent reported for redemptions in the same period a year ago. The 3.11 per cent reported for March 2020 marks the third consecutive month of year-over-year reductions in redemption notices,” says Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. “We note this improvement in hedge fund redemptions has occurred against the backdrop of the COVID-19 outbreak, but the ongoing increase in cases reported worldwide,
Managed futures strategies have been slowly clawing back gains in recent days, as steep downward trends continued to rock global markets on the back of the coronavirus pandemic.
Covid-19 will impact Greek tourism, but with strong PMI figures in 2019 and a new stable government, hedge funds such as Greylock Capital see long-term opportunities in the country; in particular Greek debt and real estate. Hopefully, the storm that ensued from its debt crisis in 2010 will not be repeated.
By Ben Watford, Eversheds Sutherland – Selecting the fund domicile which best suits an emerging hedge fund strategy is one of the key decisions facing investment managers ahead of launch. The choice they make at the outset will have far reaching regulatory and tax consequences throughout the life of the fund.
Law firm Eversheds Sutherland notes that in making this choice, a manager needs to take into account the preferences and location of the fund’s seed and target investors. Historically, hedge fund managers have favoured offshore, low tax jurisdictions like the Cayman Islands, but more recently the dedicated fund vehicles
In the current challenging capital raising environment, emerging hedge funds need to juggle a number of priorities, including having a clear business plan and building a strong track record. But a key element in determining a start-up hedge fund’s fate is keeping a close eye on expenses.
“You want to keep your expenses under control, because if these are too high, then your performance comes under pressure,” explains Joris Groot, Business Development Manager Europe, Circle Partners.
He says cost needs to be considered in several crucial decisions start-up hedge funds need to make, for example choosing their service providers. “They can
Hedge funds looking to launch in Europe should be selective in their infrastructure investment, identify credible target client groups and understand the importance of concise marketing material which clearly outlines their unique selling point.
Cowen’s London-based prime brokerage and cap intro team outline some of the challenges emerging hedge funds may face. Colin Bridges, Director, suggests that “funds often try to do too much too soon. They can spend many thousands of dollars on an institutional grade setup for Day One, but if they’re just managing friends and family money, that may not necessarily be needed up front. Having the ability
By A Paris – The European hedge fund industry ended the year with USD486 billion in assets under management. The largest portion of these funds were domiciled in the Cayman Islands. Luxembourg was the next most prevalent jurisdiction, which highlights one of the key decisions start-up hedge funds need to make ahead of launch – that of domiciliation.
Despite experiencing outflows over the course of 2019 and navigating a challenging capital raising environment, last year saw the number of launches in the European hedge fund market outpace the number of closures for the first time since 2014, according to data from Eurekahedge.
H2O Asset Management, Bruno Crastes’ discretionary macro hedge fund firm, has written to investors to offer its “sincere apologies” for “significant” risk-adjusted losses this past week.
“If 2008 was a liquidity crisis, 2011, a volatility crisis, and 2016, a convexity crisis, 2020 is a combination of the three previous shocks,” H2O said in a client letter this week following the recent stock market collapse.
Its flagship fund H2O Adagio, which invests in sovereign bonds, credit and currencies, has shed more than 15 per cent since the start of the year, reversing last year’s 7.6 per cent annual gain.
Meanwhile, H2O
