Funds
Hedge funds posted declines in December, led by Energy and Quantitative CTA strategies, to conclude a volatile, turbulent year in financial markets, according to data released today by HFR.
The year began with major dislocations in currency markets, included steep declines for oil and energy commodities, as well as Emerging Markets, and concluded with rising geopolitical and terrorism threats as well as the first US interest rate increase in nearly a decade. Oscillating between positive and negative performance throughout the year, the HFRI Fund Weighted Composite Index® posted a decline of -0.85 per cent in December, ending the year down
Multiple and powerful pressures are impacting the hedge fund industry, but two are particularly prominent: a dramatically increased regulatory burden, and investor demands for greater transparency and lower fees.
Far-reaching and complex new rules continue to reshape the environment, from Dodd-Frank and EMIR to FATCA and AIFMD. To meet these stringent regulatory responsibilities, and keep pace with evolving investor best practices, hedge funds will need to adopt a firm-wide “culture of compliance.”
Non-compliance not an option
Satisfying regulatory rules and investor demands may seem like a costly headache, but compliance is simply good business. Poor or non-compliance risks:
More frequent
Abbey Capital Limited’s mutual fund, the Abbey Capital Futures Strategy Fund surpassed USD300 million assets under management as at 31 December 2015.
Launched on 1 July 2014, the Fund has returned over 23 per cent since inception and offers individual and institutional investors access to a multi-manager managed futures strategy, complemented with an actively managed fixed income exposure, achieved in a highly competitive cost structure.
“We are delighted with the strong asset growth which we believe reflects the growing appetite for liquid alternatives and also the unique attributes of our product offering,” says Mick Swift, Deputy CEO of Abbey
Independent institutional and private client service provider JTC has extended the capabilities of its Cayman Islands office to offer a broad range of fund administration services, following the completion of its acquisition of GAM’s Cayman Islands fund administration business.
Having announced the acquisition in October and with full regulatory approvals from the Cayman Islands Monetary Authority now granted, JTC believes it is strongly positioned to provide a full spectrum of fund administration services, adding to the private client services it already offers from the jurisdiction, where it has had a presence since 2013.
With all 14 staff in the Cayman
Accenture is to acquire Formicary, a provider of consulting and systems integration services for trading platforms in the UK and North America.
Accenture believes the acquisition will further strengthen its capabilities in helping banks, asset managers, hedge funds and clearing organisations transform their trading technology platforms, enabling them to quickly and cost-efficiently adapt to market and regulatory change. Terms of the transaction were not disclosed.
Formicary specialises in financial trading systems consulting, systems integration and migration, and IT services and software for over-the-counter (OTC) clearing, which includes implementations of industry-leading trading platforms such as Murex, Calypso and Misys Summit.
Millennium Trust Company has launched the Millennium Alternative Investment Network (MAIN), a centralised online service dedicated to simplifying the custody of alternative investments.
MAIN aims to deliver an efficient end-to-end solution for individuals and advisors looking to hold alternative investments within either IRAs or taxable custody accounts. Through MAIN, investors can link to the growing number of investment platforms offering access to an increasing range of alternative investments. After completing their research and selecting an investment via a platform, investors can complete Millennium's required documents to open and fund an account and direct their investments entirely online.
Further, MAIN
ChartIQ, a specialist in HTML5 financial charting for capital markets, has launched a fully integrated app in Thomson Reuters Eikon, a platform for consuming real-time and historical data, and connecting the financial markets community.
App Studio in Eikon allows third parties to build their own apps that sit within the Eikon desktop, powered by Thomson Reuters and other data, and to make them available to Eikon users.
ChartIQ is focused on building HTML5 financial charting and data visualisation tools for capital markets applications. Owing to the flexibility of its technology and the open capabilities of Thomson Reuters Eikon, users
FORT Management, a 23-year-old hedge fund firm led by two economists – Yves Balcer and Sanjiv Kumar – who formerly ran the investment division at the World Bank – has sold a 10 per cent stake to Goldman Sachs via its Petershill II fund.
Based in New York and Chevy Chase, Md, FORT manages around USD1.6 billion and deploys systematic strategies that invest in multiple asset classes globally. The firm’s Contrarian and Diversified strategies have consistently beaten benchmark indices since inception. FORT stands for Financial Opportunities in Research in Trading.
The firm, which was established in 1993 has seen assets double in
CTA strategies posted negative returns across the board in December to end a volatile year ccording to data released by Societe Generale, with the firm’s headline SG CTA index down 1.29 per cent for the month resulting in a flat performance for the year.
The Newedge Indices have now been rebranded to the SG Prime Services Indices, effective immediately. This is part of the integration of Newedge into Societe Generale’s Global Markets division, following the acquisition of Newedge by Societe Generale in May 2014. Given the close alignment of the businesses, the industry-leading benchmarks will now operate under SG Prime
London-based Nevsky Capital is closing its USD1.5 billion hedge fund, citing the rise of algo trading and bear market fears as reasons for the closure. The Nevsky fund is expected to liquidate its portfolio and move into cash by the end of this month.
In a statement to investors CIO Martin Taylor (pictured) says: “After 15 years of managing the Nevsky fund, we have come regretfully to the conclusion that the current algorithmically driven market environment is one which is increasingly incompatible with our fundamental, research orientated, investment process.”
Taylor adds: “The bear market in emerging market equities, which began
