Funds
Steve Cohen’s Point72 Asset Management is planning to raise approximately $1bn for a new hedge fund focusing on AI, marking the firm’s first new hedge fund in decades, according to a report by Bloomberg.Â
Digital asset investment products saw inflows totalling $2bn last week, bringing the current five-week run of inflows to $4.3bn, according to the latest digital assets fund flows weekly report from CoinShares.
Led by directional equity hedge and event-driven strategies, the HFRI Fund Weighted Composite Index advanced 1.3% in May, with additional positive contributions from relative value arbitrage strategies offsetting a decline in macro strategies.
Citadel, Ken Griffin’s $63bn Miami-based hedge fund firm, which, according to LCH Investments, is the most profitable hedge fund of all time, lost money in May, with its flagship Wellington fund down 0.8%, according to a report by Business Insider.
Wellington, the flagship fund at Ken Griffin’s multi-strategy hedge fund firm Citadel, has surpassed $14.5bn in assets, having more than doubled in size over the past five years, according to a report by the South Florida Business Journal.
Among alternative investments, hedge funds are used by a third (33%) of family offices globally for diversification purposes, according to the UBS Global Family Office Report 2024.Â
Private equity’s challenges in returning capital to clients are increasingly affecting hedge funds, which depend on the same pool of institutional investors including pension plans, foundations and endowments, for their fundraising efforts, according to a report by the Financial Times.Â
Simon Sadler’s $4.8bn Asian hedge fund Segantii Capital Management has said it will wind down and return capital to its investors “in an orderly manner”, with about 140 employees across Hong Kong, New York and London affected by the decision.
Hedge funds experienced their first negative month of the year in April, with a weighted average return of -0.7%, according to new data from Citco, but remain in positive territory for 2024 with a year-to-date weighted average return of 6.5%.
Peconic Partners, the $1.8bn long-short hedge fund firm run by Bill Harnisch, has continued a four-year winning run so far in 2024, with the fund up 18% year-to-date, extending a run of outperformance that includes a 26% gain in 2022 when the S&P 500 lost nearly 20%, according to a report by Bloomberg.
