Managers
A new single structure for conducting both the fund and insurance element of insurance-linked securities (ILS) business is being devised in Guernsey.
Expert insurance lawyer Mark Helyar is leading the way with the development of “true convergence” in the ILS space where “capital markets and insurance markets meet”.
“My job is to put together structures to help them to invest in each other,” he said while speaking at the ILS Insight event organised by Guernsey Finance in Zurich. “The collateralised re market has become so big in recent years. With Cat bonds you’ve got risk looking for capital, and with
There was a pause in trade developments and solid corporate profits fuelled risk appetite last week pushing hedge funds strategies with the highest market beta higher, according to the latest Weekly Brief from Lyxor’s Cross Asset Research team.
CTAs outperformed thanks to their long positioning across most of asset classes. Last week, long equities and USD were the main contributor to their returns.
Market Neutral and L/S Equity were both supported by the recovery in Momentum stocks.
By contrast, Event-Driven underperformed, with both Merger Arbitrage and Special Situations in negative territory. In particular, spreads widened on several deals
The SS&C GlobeOp Forward Redemption Indicator for hedge funds measured 2.40 per cent for July, down from 4.17 per cent in June.
“SS&C GlobeOp’s Forward Redemption Indicator for July 2018 was 2.40 per cent, reflecting improved levels of redemption notices compared to the 2.57 per cent reported for the same period a year ago in July 2017,” says Bill Stone (pictured), Chairman and Chief Executive Officer, SS&C Technologies. “Through the first half of the year, redemption notices have continued to trend favourably, showing investors remain confident in their hedge fund allocations.”
The SS&C GlobeOp Forward Redemption Indicator represents the sum of forward
Investors withdrew an estimated USD7.88 billion from global hedge funds in June 2018, bringing overall Q2 2018 net flows for the industry to -USD5.43 billion, according to the eVestment June and Q2 2018 Hedge Fund Asset Flows Report.
Industry assets under management (AUM) stood at USD3.308 trillion at the end of the quarter and signs of industry consolidation continue to present themselves. Among investors, the new report shows a strong demand for funds that have performed well, with a preference for size, and clearly investors are willing to remove assets from those funds not meeting expectations.
Among primary strategies,
Fulcrum Asset Management has listened to the UK institutional marketplace and launched a fund that it believes will meet a series of key considerations.
Speaking with Hedgeweek at a coffee shop opposite Fulcrum’s office in Marble Arch, London, Matthew Roberts (pictured), Partner at Fulcrum, says that the Fulcrum Diversified Liquid Alternatives Fund (‘The Fund’) aims to give investors access to liquid alternatives in the “broadest possible sense”, in a single fund structure.
Roberts joined Fulcrum to oversee the new business division from Willis Towers Watson at the end of 2017.
The strategy covers listed real assets, alternative credit and diversifiers
Qatar Reinsurance Company Limited (Qatar Re), a multi-line reinsurer authorised by the Bermuda Monetary Authority, is to cease writing new and renewal business from its branch office in Singapore, with effect from 20 July 2018.
The Company says it will work closely with its Singapore-based staff, its clients and broking partners and regulators to ensure the orderly administration of existing business written from the branch. This decision does not affect Qatar Re’s sister company, Antares Asia, which continues to participate on the Lloyd’s Asia Platform.
Gunther Saacke (pictured), Qatar Re’s CEO, says: “Like many of our peers, we have
Charles River Development, provider of the Charles River Investment Management Solution (Charles River IMS), is to be acquired by State Street Corporation (STT).
The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in the fourth quarter of 2018.
The acquisition will combine Charles River’s front and middle office Software as a Service (SaaS) capabilities with State Street’s extensive front, middle and back office capabilities to deliver a comprehensive end-to-end interoperable Buy-Side platform.
“The synergy between our firms provides the market with a major new differentiating offering that will change the
Hedge fund capital ended Q2 2018 at a new record level for the eighth consecutive quarter as investors reversed Q1 strategy flow trends, allocating new capital to Equity Hedge strategies while redeeming from Macro strategies, with Relative Value Arbitrage and Event Driven also showing small outflows.
Total hedge fund industry capital globally increased by USD20.6 billion to a new record of USD3.235 trillion, according to the latest HFR Global Hedge Fund Industry Report.
Reversing the trend of inflows from Q1 2018, investors redeemed an estimated USD3.0 billion in Q2 2018, the first quarterly outflow since Q1 2017. Firms with
JP Morgan Alternative Asset Management (JPMAAM) is strengthening its efforts to assist hedge fund managers who are interested in increased adoption of environmental, social and governance factors into their underlying strategies and businesses.
This week JPMAAM hosted its first ESG Forum at its New York headquarters, bringing together a diverse range of hedge fund managers interested in learning more about institutional client interest in ESG, enhancing alpha with ESG, and best practices for incorporating ESG factors into their businesses.
“In our hedge fund solutions business we are seeing increased interest from our clients in the ESG practices of our
Risk assets were under pressure during the second half of June as trade war concerns escalated. The MSCI World was down 3 per cent in USD terms during the second half of June, since Trump approved tariffs on Chinese imports.
Lyxor writes: “The equity market correction was accompanied by a sector rotation which sent cyclical sectors such as Materials and Industrials down. Meanwhile, defensive sectors such as Utilities and Telecommunications outperformed since mid-June. Translated into the world of risk factors, this movement is a momentum reversal.
“In the hedge fund space, momentum reversals tend to impact negatively L/S Equity
