Funds
Diego Marynberg, president of Adar Capital Partners, is predicting that the next two years will see continued adjustment in the hedge fund sector with many funds disappearing as a result of increased volatility.
Adar Capital Partners' Adar Macro hedge fund has accumulated a yield of 30 per cent between January and October this year and 57 per cent since it was launched in August 2013, consolidating it as one of the most profitable funds in the world.
Marynberg says: “The current crisis of many hedge funds is essentially due to the fact that they took up positions years ago
Lalpina Water (American Premium Water Corporation), a producer of high-quality alkaline water, now has a New York hedge fund among its customers.
In an effort to promote a healthy workplace, Blackbridge Capital has purchased a six-month supply of Lalpina Water for its New York office.
The fund also confirmed it has just given Lalpina’s exclusive east coast distributor a purchase order for an additional one-year's supply. At the same time, the company's own efforts to promote wellness in children are succeeding, yielding a marked increase in distribution to schools in the New York Tri-State area over the last quarter.
According to Hedge Funds Research, hedge funds this year have experienced more than USD50 billion of net outflows, continuing a theme that began back in Q4 2015.
Prior to this, the industry had enjoyed a near constant quarter-on-quarter increase in net inflows, taking total industry assets beyond USD3 trillion. This year, it would appear institutions have taken pause for thought and questioned the value of their offshore hedge fund allocations.
By contrast, however, the alternative UCITS industry has continued to grow from strength to strength. According to Hedge Fund Research, this area of the market had USD200 billion in assets
With investors concerned over the impact that a rising rate environment could have on their fixed income portfolios, the need to look for alternative solutions to hedge against, and even profit from, widening yields, is becoming paramount. James Williams (pictured) explores how alternative UCITS, which continue to enjoy positive inflows, are proving an appealing option to investors looking to diversify their investments.
In the last few years, investors have continued to pile into fixed income to enjoy the last drops of yield compression, which have moved perilously close to zero. US 10-year Treasuries fell as low as 1.38 per cent
Investors redeemed an estimated USD14.2 billion from hedge funds in October, bringing year-to-date outflows to USD77.0 billion, according to eVestment’s latest Hedge Fund Industry Asset Flows Report.
The report reveals that the breadth of redemption pressure in October was the industry’s largest in 2016 with 61 per cent of reporting funds estimated to have net outflow during the month.
The last five months have accounted for the majority of the industry’s redemptions in 2016, a time frame which aligns with investors’ processes for analysing 2015 results, and taking actions on those decisions.
Redemptions from managed futures were the
Assets held by hedge fund managers increased by 2.9 per cent in the first three quarters of 2016, taking total industry AUM to USD3.24 trillion, according to Preqin.
Across most strategies, strong returns have been the central driver of asset growth, with the industry posting gains of 5.44 per cent through Q1-Q3 2016.
Strong performance for equity and macro strategies funds overcame net investor redemptions to see their AUM grow in the first three quarters of the year, while credit, relative value and multi-strategy funds all saw their total assets fall.
By contrast, though, CTAs have seen net
2016 will be the year of haves and have-nots for hedge fund investment professionals, according to compensation data from CompIQ and performance data from HFR.
The widening YTD performance gap will translate to large increases in bonuses for top-performing funds and decreases in bonuses for bottom-performing funds especially for upper level management and key investment professionals whose compensation is more closely tied to their fund’s performance and overall assets under management.
Across the board, non-investment professional roles will show salary increases, albeit at a modest, single-digit level.
A shift in the range of performance from fund to fund
AcadiaSoft, a provider of margin automation solutions for counterparties engaged in collateral exchange worldwide, has acquired ProtoColl, an end-to-end collateral and margin management service, from the Depository Trust & Clearing Corporation (DTCC).
Terms of the deal have not been disclosed.
In March, thousands of buy-side firms and smaller banks will become subject to new variation margin (VM) rules for non-cleared OTC derivatives that went into effect on 1 September for the largest global banks, all 24 of which are using the AcadiaSoft Hub in order to comply.
The purchase of ProtoColl accelerates AcadiaSoft's ability to provide market participants
CEO and Founder of Sun Global Investments, Mihir Kapadia, has commented on why investors are increasingly choosing ETFs over hedge funds.
“ETFs already outstrip hedge funds by about USD3.4tr, or by over 10 per cent,” Kapadia (pictured) says. “The ETF industry has attracted assets from the hedge fund sector as hedge funds find it harder to justify their higher fees and inconsistent performance numbers verses a passive ETF investment which can offer diversified exposure at a fraction of the cost of a hedge fund. Add to this the instant liquidity or exchange traded component of an ETF and the ETF offers certain
The top hedge funds managed approximately USD145 billion in equity holdings in the third quarter, down from the USD150 billion under management in Q2, and down more than USD50 billion from the highs reached in 2015.
The latest Hedge Fund Tracker analysis from S&P Global Market Intelligence also shows these funds increased the total number of positions to 424 in Q3 from 399 in Q2, which was a record low for stock positions held since S&P Global Market Intelligence began tracking this data in 2014.
Stocks in the healthcare and information technology sectors were the most sold off last
