Funds
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
Rhenman & Partners Asset Management, the Stockholm-based hedge fund firm which invests in global healthcare stocks, says the industry has not been shielded from the impact of Covid-19 – though different sub-sectors have been impacted in markedly different ways.
The Rhenman Healthcare Equity Long/Short Fund – which trades a range of small, medium and large pharmaceuticals, biotechnology, medical technology and service company stocks – fell more than 3 per cent during February, as the market reversal on the back of the Coronavirus outbreak began to bite. The USD700 million strategy, which launched in 2009, returned an eye-catching 40 per cent
The hedge fund industry experienced USD21.2 billion in inflows in January, reversing a two-month redemption trend in a turnaround from December’s USD29.0 billion in redemptions.January’s inflows represented 0.7 per cent of industry assets, according to the Barclay Fund Flow Indicator published by BarclayHedge, a division of Backstop Solutions.
A January trading profit of USD6.8 billion brought total hedge fund industry assets to more than USD3.26 trillion as January came to a close, up from USD3.19 trillion at the end of December.
January’s industry inflows were fueled largely by hedge funds in the US and its offshore islands, which took in
Alpha Sigma Capital (ASC), a new blockchain investment and digital currency hedge fund, officially launched on 6 January, 2020, with a focus on delivering growth capital to blockchain companies with a multi-strategy hedge fund that utilises tokens, cryptocurrencies, equities, derivatives, and private investments. Founded by Enzo Villani and Michael Onghai, two serial entrepreneurs with extensive experience in private equity, public equities, M&A and portfolio management came together to fill a need in the market that allows institutional investors to invest in digital assets via a professionally structured fund that deems liquidity and proven success as key investment criteria. Hedging allows the
Brummer & Partners, the long-running Swedish multi-strategy hedge fund firm, is maintaining its market neutral approach and focus on diversification after its flagship strategy stumbled during the recent steep market sell-off.
In a note to investors this week, founder Patrik Brummer and Mikael Spångberg, CEO and portfolio manager of the Brummer Multi-Strategy fund, said markets are set to be characterised by “great concern and high volatility” for some time.
Brummer Multi-Strategy, the firm’s flagship multi-strategy fund of funds vehicle, has fallen 3.5 per cent so far this month, and has now lost 3 per cent since the start of 2020.
The managed futures industry reversed course in February, turning from January’s gains into negative monthly territory losing 0.22 per cent, according to the Barclay CTA Index compiled by BarclayHedge, a division of Backstop Solutions. CTAs remain in the black for the year-to-date, however, returning 0.34 per cent through the end of February.
“After making record highs in the first half of February, economic concerns driven by coronavirus fears dragged US and European stock markets sharply lower at month’s end,” says Sol Waksman, president of BarclayHedge. “While the virus took its toll on equity markets, holdings in other market sectors were more
The market fallout from the coronavirus pandemic will see continued volatility across equity, credit and commodity markets – but also potential investment opportunities.
The Eurekahedge Hedge Fund Index registered its strongest outperformance relative to underlying markets since February 2009, outperforming the MSCI AC World Index by 6.11 per cent in February. Long volatility and tail risk hedge funds led the performance tables in February and have outshined most other strategies as market volatility level remained elevated during the month.The global hedge fund industry AUM had increased by USD10.3 billion in 2019. Investor redemptions totalling USD127.5 billion have been recorded throughout the year, a level the industry has not seen after the global financial crisis. Going into 2020, net investor outflows of USD1.7 billion
SIX has reported operating income of CHF1,129.7 million for the 2019 financial year. Read the full story at Institutional Asset Manager…
Chenavari Investment Managers, the London-based credit-focused hedge fund, is building “agile and opportunistic” positions for yet further dislocation in global markets, going long in synthetic instruments – such as synthetic bonds and credit default swaps – and shorting cash assets, predominantly cash bonds.
In a letter to investors on Monday morning, Chenavari observed how value is reconstituting following last week’s market turmoil, with credit spreads in the iTraxx Crossover 5 year CDS index having gapped out some 300 basis points since the start of the year.
Meanwhile, technicals will be “king” in the short-term, the manager said.
“After the brutal sell
