Falling volatility has seen a number of algorithmically driven hedge funds ramp up the rate of their stock buying to one of the fastest levels in a decade, according to a report by The Financial Times, citing data from bank trading desks.

London-based activist investor Covalis has lost its boardroom battle at Italian power utility company Enel, after shareholders elected Flavio Cattaneo as CEO and General Manager, and another five candidates proposed by the Italian government to the board of the utility, defeating Covalis’ alternative slate, according to a report by Reuters.

A growing short position on US Treasury futures is directly attributable to hedge fund placing bets on the spread between the futures and their underlying assets, according to a report by Bloomberg citing data from the Commodity Futures Trading Commission. 

Hedge funds have become too pessimistic about stocks as they position for a slump in global equities and may have to become more bullish if the current stock rally continues pushing the market even higher according a report by Bloomberg. The report cites Arthur van Slooten, a strategist at Societe Generale, as saying that their positioning is “so extreme” that no decline in equities “could result in a quick and drastic reversal of positions” and could potentially send “equities and bond yields higher”. According to data compiled by Bloomberg, the report says that net short positioning on the S&P 500

L1 Capital, a Melbourne-based hedge fund run by Raphael Lamm and Mark Landau, is buying cyclical stocks rather than defensive stocks as it pares back its long-exposure to equity markets, according to a report by The Financial Review. The firm believes that defensive stocks are too expensive as they have already priced in future interest rate cuts.  The report cites Landau, co-founder of the 16-year-old hedge fund, as having told investors that ASX-listed companies that derived their revenues offshore are particularly vulnerable, given their elevated valuations and the weak Australian dollar. “Cyclicals are the opportunity in the market and defensive

Shares in Carl Icahn’s hedge fund slumped by 20% on Wednesday after the firm revealed that federal prosecutors requested documents from the company just a day after Hindenburg Research took a short position on the firm, according to a report by the New York Post. The report cites a filing made with the Securities and Exchange Commission on Wednesday that the US Attorney in the Southern District of New York contacted Icahn Enterprises on 3 May “seeking production of information” about its corporate governance as well as “capitalization, securities offerings, dividends, valuation, marketing materials, due diligence, and other materials.” Icahn

Having bought discounted bank equities in March during the market turmoil triggered by the collapse of Silicon Valley Bank and Signature Bank, hedge funds reduced their exposure to financial stocks in April, according to a report by Reuters.

The ‘Great Resignation’ has had big impact on hedge fund IT management strategies with 87% of firms looking to increase outsourcing due to high employee turnover and increased labour costs, according to the latest edition of Hedge Fund Managed IT Trends Report from IT and cybersecurity provider Agio. The report, which is based on a survey of over 100 hedge fund practitioners spanning the technology, operations, cybersecurity, compliance, and finance fields, exploring how economic and employment trends are shaping their technology management practices and preferences, also reveals that 55% of firms that currently outsource their IT intend to increase outsourcing