Funds
The upcoming US elections and the possibility of a rate shift in the UK and Europe could present hedge funds with alpha hunting opportunities, writes Hedgeweek Editor-in-Chief, James Williams…
The last decade was dominated by sustained central bank intervention, giving rise to supercharged performance in equity and bond markets. And stripping away volatility like one would offensive wallpaper in a new home. This was not a period for hedge funds to operate at their optimal best, but perhaps this new decade – and indeed this year – could start to re-introduce some much needed volatility and give hedge fund managers
After a one-month reprieve, the hedge fund industry returned to net outflows in November with USD4.7 billion in redemptions, a reversal from October’s USD1.9 billion in industry inflows.November’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 USD19.1 billion November trading profit brought total hedge fund industry assets to more than USD3.16 trillion as the month ended, up from USD3.13 trillion at the end of October.
November’s redemptions were driven by numerous economic events and indictors that worried investors as summer came to a close,
The gross return of the SS&C GlobeOp Hedge Fund Performance Index for December 2019 measured 1.65 per cent.Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index declined 1.84 per cent in January.
“SS&C GlobeOp’s Capital Movement Index for January 2020 of -1.84 per cent reflects net outflows consistent with seasonal patterns. It should be noted that the -1.84 per cent is well below long term averages for the calendar month of January, and is also lower than the -2.13 per cent reported a year ago,” says Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. “In effect, the relatively low level of
The managed futures industry closed the year with a second consecutive profitable month and rose 0.20 per cent in December, according to the Barclay CTA Index compiled by BarclayHedge, a division of Backstop Solutions. For the full year, CTAs returned 5.15 per cent.“A fourth month of rising equity prices and government bond yields provided a tailwind for momentum traders in December, but price reversals in agriculture and some currency markets created cross winds that reduced trading profits,” says Sol Waksman, president of BarclayHedge.
Only three CTA sectors posted positive results in December. The Discretionary Traders Index led the way with
EEX Group achieved major increases in all territories and across the majority of its portfolio in 2019 with double digit growth on its power and natural gas markets and with triple digit growth recorded on its freight markets.Peter Reitz, CEO of EEX, says “2019 is another record year for EEX Group and confirms our position as a Global Commodity Exchange. In addition to the significant increases in our power and natural gas markets in Europe, I’m particularly encouraged by the growth in our North American power and environmental business as well as the huge gains achieved in freight”.
In 2019,
Machine learning’s influence over hedge funds will continue to grow, shaping trading decisions and portfolio positioning, while sustainable alpha opportunities are driving the industry to an inflection point, a new study by JP Morgan suggests.
Hedge funds finished 2019 on a high note in December, posting an industry-wide 1.73 per cent return for the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge.For the year, the hedge fund industry gained 10.70 per cent, the largest annual return since 2013 when the Index gained 11.12 per cent. The S&P 500 Total Return Index posted a 31.49 per cent return in 2019.
All but one hedge fund index was in the black in December as a number of positive economic developments offset the impact of negative indicators.
“Equity markets finished the year strong, with US
Morgan Stanley has appointed Linda Hill and Emmanuel Roman to the Institute for Sustainable Investing Advisory Board, effective immediately.The Institute for Sustainable Investing’s Advisory Board comprises prominent leaders from business, academia and leading non-governmental organisations and guides the Institute’s work and strategic priorities.
Hill is the Wallace Brett Donham Professor of Business Administration at the Harvard Business School and chair of the Leadership Initiative. Roman is CEO and Managing Director of PIMCO.
“Our newest board members are both deeply committed to the mission of the Institute and have diversified skill sets that will provide invaluable insight and perspectives to the
iM Global Partner is to acquire a 20 per cent interest in Zadig Asset Management, an independent European equities specialist with USD1.8 billion AUM and 15 employees based in London and Luxembourg. Zadig Asset Management will be the sixth Partner to join the multi-boutique platform, and the first that manages European equities. As it is the case with the other strategic Partners, Zadig Asset Management will continue to run its operations independently and manage its portfolios using the same active and concentrated stock picking approach developed by its founders since the 1990s, prior to its founding. The acquisition is subject to
H2O Asset Management, Bruno Crastes’ bond-focused discretionary macro hedge fund, which this year marks its tenth anniversary, has posted sterling year-end gains after facing investor pressure this past summer.
