Funds
Economic uncertainty following the UK vote to leave the EU has created potential opportunities for hedge fund managers and, as a result, many more funds have launched focused on the region, according to Preqin’s Q2 update on the hedge fund industry.
Europe-focused hedge funds saw a large increase in the proportion of overall fund launches, rising from 1 per cent of funds launched in Q1 to 16 per cent of those incepted in Q2.
At the same time, UCITS-compliant funds accounted for 18 per cent of overall fund inceptions through Q2, the highest quarterly proportion tracked by Preqin since
This month marks the five-year anniversary of the three successful GAM Star Credit Opportunities funds (EUR, USD and GDP) managed by Atlanticomnium SA in Geneva.
The funds have delivered strong performance in spite of many challenges during the period, including eurozone crises in various iterations, Russia’s slowdown, worries over the Chinese economy, as well as the latest political turmoil from the UK’s Brexit vote. Investors have enjoyed a total return of 53 per cent in the EUR fund, 60 per cent in the GBP fund and 44 per cent in the USD fund since launch.
The funds have delivered what
Incline Investment Management (IIM) is marking the fourth anniversary of its proprietary investment program, the Systematic Hybrid Strategy, which has outperformed its benchmark, the HFRX Macro: Systematic Diversified CTA Index by close to 25 per cent since its launch in July 2012.
The strategy’s objective is to provide non-correlated diversification with equity-like volatility. IIM says a classic case of the ‘crisis alpha’ it offers was apparent the day after the Brexit vote on 23 June when the Strategy was up 9.5 per cent. The Systematic Hybrid Strategy was up 9.45 per cent in June.
In response to demand for non-correlated
HTG Capital Partners is to acquire the introducing broker, money management and proprietary trading businesses of Kottke Associates.
The transaction is expected to close in the third quarter, subject to the completion of certain closing conditions.
Chris Hehmeyer, manager and CEO of HTG, says: “HTG is very excited to partner with the Kottke team. Neal and his partners are giants in our industry, and I am honoured to now be in business with someone I have known for over 30 years. HTG will now provide its expertise, technology and high level of service to the Kottke prop traders, customers
Global hedge fund capital increased in Q2 2016, recovering the decline from the prior quarter and rising above the year-end 2015 level to reach the third highest quarterly capital total on record, according to the latest HFR Global Hedge Fund Industry Report.
The industry navigated volatility and dislocations related to Brexit in late 2Q to post asset gains for both 2Q and 1H16. Total hedge fund capital rose to USD2.898 trillion as of 30 June, an increase of USD42.06 billion during the quarter, as the HFRI Fund Weighted Composite Index gained 2.0 per cent in Q2.
The current capital
Operations technology startup Predictive has acquired 2338 Technologies, an early-stage, privately-backed startup developing machine learning technologies.
The purchase price has not been disclosed.
2338’s technology will now power PredictiveOps, a SaaS application that is aiming to transform language in hedge fund documents and regulatory filings into useable data for operations planning and automation.
As part of the transaction, 2338’s founder and CEO Carl P Evans III has agreed to join Predictive as co-founder, chief product officer, and corporate counsel. Evans brings over 15 years of software, hardware, robotics, machine learning development, and technology management experience to Predictive.
Exiger, a regulatory and financial crime, risk and compliance firm, has acquired The Poseidon Group, a Hong Kong and Singapore-based due diligence and business intelligence firm.
With the addition of Poseidon into its growing portfolio of specialised due diligence and business intelligence solutions for global and regional banks, private equity groups, hedge funds, multinational corporations, foundations, and endowments, Exiger gains significant expertise and manpower in Hong Kong and Singapore, bolstering the firm's ability to service the needs of clients operating in the Asia Pacific region.
"Over the past 10 years, Velisarios Kattoulas and his team at Poseidon have developed
Boutique asset manager Unigestion has launched a long/short strategy, the second of two factor funds created in collaboration with its client Railpen, which were announced in January.
The first of the strategies, the long only “Equity Compass” strategy, which launched in December 2015, has attracted GBP50 million of assets and has returned 5 per cent in the first six months since launch, outperforming its benchmark by more than 3 per cent.
Following this success, the long /short “Alternative Equity Compass” strategy was launched mid-May 2016 and the strategy has already proven successful, having performed well during the days following
Funds of hedge funds (FoHF) have gone from accounting for nearly 50 per cent of all hedge funds assets under management (AUM) in 2008 to 28.3 per cent in 2016, according to eVestment’s latest Fund of Hedge Funds Industry Report.
Over the last four quarters, net investor flows were -USD50.3 billion, while HF’s flows were essentially flat, at +USD0.34 billion. eVestment believes this suggests that while FoHF money is coming out, it is being replaced by other investors.
FoHFs have been dealing with investor sentiment by reducing fees. Management fees have been in decline since 2010, falling from an average
OptionMetrics, a provider of historical option price data, tools and analytics, has bolstered its global technology, development and operations team with the addition of veteran systems engineers, software engineers and quality assurance specialists.
The new hires are a direct response to three consecutive record quarters of overall revenue growth (Q4 2015, Q1 2016 and Q2 2016), and new sales growth of 40 per cent over the comparable quarters in 2014 and 2015.
The new team members come to OptionMetrics with decades of experience at top financial firms including American Express, Barclays, and Bank of America. They are based at
