Funds
Hedge fund data provider HFR is at an advanced stage of working with one of the large global derivatives exchanges to develop a new investment product, the HFRI-I futures contract, a contract based on the HFRI-I Fund Weighted Composite Investable Index. The firm writes that once launched, this will be an industry first.
The thinking behind the contract is that allocating to individual hedge funds requires extensive research and substantial capital which can be tied up for long periods. Marc E Denogent, HFR Asset Management’s Managing Director says: “When people allocate to hedge funds, they often have a considerable time
Nasdaq and SIX Swiss Exchange have extended their current technology contract, which includes X-stream INET Trading technology for all SIX markets, including equities, ETFs, structured products, funds and fixed income, as well as SMARTS Market Surveillance and Nasdaq Pre-Trade Risk Management.
In addition, the new SIX Swiss Exchange At Midpoint (SwissAtMid) dark pool was launched on Nasdaq trading and surveillance technology earlier this month.
The two companies have been partners for more than 10 years.
"We are delighted to extend our successful technology relationship with Nasdaq," says Christoph Landis (pictured), division CEO, SIX Swiss Exchange. "Our broadly diversified international client base
CBOE Holdings has reported net income allocated to common stockholders of USD40.3 million, or USD0.50 per diluted share, for the third quarter of 2016, compared with USD67.2 million, or USD0.81 per diluted share, in the third quarter of 2015.
Last year's third quarter financial results represent an all-time high for the company, while this year's results include USD8.6 million of acquisition-related expenses.
Adjusted net income allocated to common stockholders was USD47.2 million, or USD0.58 per share, compared with USD63.0 million, or USD0.76 per share, for the third quarter of 2015.
Operating revenue for the quarter was USD156.2 million,
Bitcoin asset manager Global Advisors (Jersey) has appointed custodians and extended the trading powers for its flagship fund, Global Advisors Bitcoin Investment Fund (GABI).
Co-founder and chief investment officer Daniel Masters says the new developments pave the way for the GABI to list on the Channel Island Securities Exchange, which is anticipated to occur this November.
The bitcoin custodians for the fund are Gemini Trust Company and itBit, both US-domiciled New York State-charted limited purpose trust companies that are regulated bitcoin custodians. In addition to meeting the capitalisation, reserve, compliance, consumer protection and cyber-security requirements of the New York
Managed futures have become an alternative asset class that is widely used by investors seeking overall portfolio diversification and absolute returns independent of the direction of broad equity and bond markets, according to a study by alternative investment managers Steben & Company.
In a new white paper examining the performance of managed futures funds, the firm writes: “The most common managed futures trading strategy is trend following, a strategy that attempts to exploit momentum in more than 200 global futures markets (including commodities, equities, fixed income, and currencies) by taking long positions in rising markets and short positions in falling markets.”
Steben writes
Chicago Board Options Exchange (CBOE) has launched the CBOE S&P 500 Smile Index, a premium-capture strategy benchmark index based on the steepness of the curve of implied volatilities of S&P 500 Index (SPX) options.
The CBOE Smile Index's strategy alternates between selling a strangle (sell put/sell call) when the options smile is steep, and selling a risk reversal (sell put/buy call) when the options smile is relatively flat.
Historically, a flatter smile has been associated with market bottoms and suggests a higher probability of a market upturn.
Constructed to perform in both bull and bear markets, the CBOE
Adding leverage to an alternative investment fund does not necessarily increase the risk, according to a study by the Alternative Investment Management Association (AIMA) and the CAIA Association.
The AIMA/CAIA study suggests that there is no direct relationship between hedge fund leverage and the volatility and downside risk of fund performance.
For example, funds that typically have the highest leverage ratios of all hedge funds – those using relative value or arbitrage strategies – have lower volatility on average and have suffered smaller losses during crises and other periods of market stress over the last 20 years.
Equally,
Risk management has mutated under AIFMD, causing risk managers to become more involved in the portfolio management process from an ex ante risk perspective. As investors become more educated on the risk function, managers who can demonstrate an independent, robust risk management environment have the potential to improve their capital raising capabilities.
Historically, risk management has always been viewed as a tactical function within hedge funds and has tended to operate in the background. But AIFMD regulation and increased investor due diligence is making risk management a more strategic function, causing risk managers to become increasingly involved in the capital
The Thomson Reuters and Singapore Exchange Singapore Fixed Income Indices (TR/SGX SFI) have been selected as the recommended fixed income benchmark by United Overseas Bank (UOB) following the discontinuation of the UOB SGS Index.
Launched in 2013, the TR/SGX SFI offer a solution for tracking the performance of investments in the Singapore debt markets. They offer wide coverage of over 60 government, statutory board and corporate bond indices, and a time-specific assessment of the fair market value of SGD bonds, which are priced objectively and independently by the Thomson Reuters Evaluated Pricing Service.
Stephan Flagel (pictured), global head of
Alternative investment specialist Investcorp has agreed to acquire the debt management business of 3i (3iDM) from UK-based 3i Group for GBP222 million (approximately USD271 million).
The deal will see Investcorp’s assets under management (AUM) increase by USD12 billion to approximately USD23 billion.
Investcorp says the acquisition will add to the firm’s existing product offerings across private equity, real estate, and alternative investment solutions (formerly hedge funds).
The transaction is subject to various regulatory approvals and is expected to close in the first half of 2017.
3iDM is a global credit investment company managing funds which invest
