Managers
Investors should look to alternative investments including private equity, private debt, hedge funds, and gold as a way to weather the current market uncertainty brought about by rising oil prices and inflation, and Russia’s invasion of neighbouring Ukraine, according to DBS Bank CIO, You Way Fook.
A report by Fund Selector Asia quotes Fook as telling a media briefing that he recommends a 33 per cent allocation each to gold and private equity, with 17 per cent invested in both private debt and hedge funds.
Hedge fund EDL is creating two new vehicles to hold its Russian equities positions, according to a report by Bloomberg.
The macro investment firm run by Edouard de Langlade informed investors of the move in a letter which also outlined a plan to make an in-kind redemption for VTB Bank PJSC and Alrosa PJSC shares, which are both subject to sanctions, over Russia’s invasion of neighbouring Ukraine.
As of 18u March, the USD693 million EDL Global Opportunities hedge fund had about 10 per cent o fits assets invested in Russian equities according to the report.
Hedge fund firm Coatue is to withhold USD33 million from a total of USD250 million in client redemption requests, according to a report by Bloomberg.
The money being held back, which amounts to 13 per cent of the total requested, was invested in prove companies and will now be placed in a side-pocket by Coatue, the report says, quoting ‘people familiar with the matter’.
Coatue’s main fund, which has about 11 per cent of its USD15 billion in funds invested in private companies, is said to be down 11 per cent so far this year and 3 per cent in March.
Disappointing results at Texas-based petrochemicals company Trecora Resources have promoted activist hedge funds Ortelius Advisors, to pen an open latter to investors, according to a report by Opalesque.
The letter also claims that Trecora has refused to consider a a series of proposals and director candidates put forward by Ortelius, something Trecor has denied.
Ortelius is currently the the company’s largest shareholder with an 11.3 percent holding of the company’s outstanding common stock.
Hedge funds are at odd over how the reporting of emissions data related to short selling strategies should be reported, according to a report by Bloomberg.
Some funds say that if a short bet against an oil producer pays off and the stock price falls, that should be reported as negative in terms of CO2 emission, while others says that the producers CO2 emissions remain the same whether the stock price falls or rises.
At Capital Fund Management is cited as a fund that follows the first approach while the report credits AQR Capital Management’s Cliff Asness has saying that
Prometheus Alternative Investments, a Los Angeles, California-based social marketplace platform providing institutional-quality information, insights, and alternative investment opportunities to high-net-worth (HNW) investors, wealth advisors, and asset managers, has launched its new Access Funds programme.
With its first feeder fund now live, the programme offers accredited investors, who represent over USD177 trillion in assets globally, the ability to discover, research, and transact at lower minimum investment amounts (as low as USD25,000) across an expanding menu of high-quality fund managers covering hedge fund, venture capital, private equity and credit, real estate and crypto strategies.
All underlying fund managers participating in the Access
Fidelity Investments has launched Fidelity Diversifying Solutions, a new division offer investors access to hedge-fund like strategies, according to a report by Bloomberg.
The new liquid alternatives division, headed by president Vadim Zlotnikov, filed to register two new funds at the end of last year, Fidelity Global Macro Opportunities and Fidelity Risk Parity.
The liquid alternatives sector, which first took off during the inancial crisis in 2008 before falling out of favour with investsors, has experienced a renaissance during the pandemic, attracting USD29 billion in 2021 when inflows exceed redemption for the first time since 2015, according to Morningstar.
RBC Global Asset Management (RBC GAM) and BlueBay Asset Management (BlueBay) have expanded their European footprint with the opening of a new office in the Netherlands, established to serve both Benelux and Nordic investors more closely and to further strengthen the company’s presence in continental Europe.
This follows the appointment of Kornelis Buursma who joined in February of this year as Director of Business Development for the Benelux region, and Rami Salminen who joined earlier in March as Director of Business Development for the Nordics region. Both Kornelis and Rami are based in the new Amsterdam branch.
Hedge funds and other market participants are considering taking legal action against the London Metal Exchange (LME) over the recent problems in the nickel market, according to a report by then Evening Standard.
Funds including AQR Capital Management are report to be considering a possible law suit after the LME suddenly suspended trading when the price of nickel doubled and the cancelled USD4 billion of trades.
The LME is owned by China’s Hong Kong Stock Exchange, the HKEX.
Fund manager Pierre Andurand has suggested that European governments should impose a 100 per cent tax on Russian oil rather than banning its import completely, according to to a report by Bloomberg Quint.
Andurand’s idea, which he shared via Twitter, is that countries unable to source alternative supplies could buy Russian oil at a discount of 50 per cent to compensate for the additional tax, which would hurt Russian oil revenues while ensuring European supplies.
Andurand’s commodity fund made 109 per cent in the first three months of the year.
