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In a context where risk assets bottomed on 23 March, most alternative strategies rebounded in recent weeks, according to the latest Weekly Brief from Lyxor’s Cross Asset Research Team.Global Macro and Event-Driven strategies benefitted the most from the fall in risk aversion, while CTAs underperformed due to their defensive positioning.
Within the Global Macro space, Discretionary and EM sub strategies rebounded the most, having suffered more during the selloff. Within the Event-Driven space, both Merger Arbitrage and Special Situations did well.
Merger Arbitrage has started to rebound since mid-March, earlier than others, when financial stress lifted deal spreads to very
Cassini Systems, a provider of pre- and post-trade margin analytics for derivatives market participants, has entered into a new initial margin (IM) partnership with AcadiaSoft Inc, a provider of risk and collateral management services for the non-cleared derivatives community. Under the agreement, Cassini clients now have automated access to AcadiaSoft’s reconciliation platform, Initial Margin Exposure Manager (IMEM), creating a one-stop shop for IM requirements across cleared and bilateral over-the-counter (OTC) and exchange-traded derivatives transactions.
The partnership will enable Cassini clients to use the firm’s pre-trade analytics to make key decisions on how best to execute a transaction, as well as
Algebris Investments is seizing on opportunities in strong, strategically important companies globally that are benefitting from government support during the downturn, as central banks “drop all their taboos” to support the global economy.
Portfolio manager Alberto Gallo, who runs the Algebris Macro Credit Fund, said that while the market outlook is “bumpy”, there are “very good returns” available in credit markets for patient investors.
Gallo’s strategy – which trades bank debt, sovereigns, and investment grade and high yield corporate debt, has so far advanced 2.68 per cent month-to-date.
Having initially remained cautious throughout January and February, putting more than half
LeverData, a financial technology company that provides data ingestion, validation, and ongoing management solutions for corporations and financial services firms, has appointed long-time hedge fund executive Mike DeAddio, formerly of WorldQuant, Citadel and MIT, as well as former Managing Director for GIC, Siew Kai Choy, to the firm’s Advisory Board.Messrs DeAddio and Choy join LeverData amid accelerating client demand for the firm’s services, which solve long-standing industry shortfalls around proper data ingestion, validation, and managed services.
“Mike and Siew Kai’s collective expertise will be invaluable as we grow our customer base and global footprint,” says Anmol Bhandari, CEO of LeverData.
The hedge fund industry tracked the fates of other markets and broader economies roiled by the novel coronavirus pandemic in March, posting an 8.03 per cent loss for the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. The hedge fund industry fared much better than the S&P Total Return Index which was down 16.2 per cent for the month.
Year-to-date, the hedge fund industry was down 10.83 per cent through the end of March. The S&P 500 Total Return Index was down 19.6 per cent over the same time period.
All but four
ChainUP’s BitWind offering creates a pool of liquidity that is comparable to those of top exchanges, thereby helping novice and operating digital asset exchanges increase their transaction volumes. On crypto exchanges, liquidity basically refers to the ease of conversions between tokens or to cash. Closely related to market depth and exchange transactions, it correlates with the number of users, level of activity and amount of funds that are being transacted. Important in traditional stock markets, liquidity plays an even more crucial role in crypto markets.
Huobi founder Li Lin has said that: “Asset volume and liquidity are the core indicators of
Digital asset exchange Bitfinex has the most liquid bitcoin and ethereum pairs, based upon order book depth analysis by The Block.While trading volume is a headline figure showcased by many cryptocurrency exchanges, the level of liquidity offers a far more valuable insight into the quality of trade execution and transaction costs, particularly in the turbulent conditions that have characterised recent cryptocurrency markets. High liquidity provides traders with tighter spreads and lower slippage.
The Block’s research, which analysed the order book depth for US Dollar pairs for bitcoin, ethereum and ripple’s XRP on 21 leading cryptocurrency exchanges, found that Bitfinex has
Named after the riverside district in central Moscow, Balchug Capital – the long/short emerging market equities and fixed income investment manager launched by David Amaryan in 2009 – focuses on event driven and value-based opportunities predominantly in Russia and the former Soviet Union.
Hedge funds trading emerging markets strategies face major dispersion in their assets, as the impact of Covid-19 – and the resulting government responses – diverges sharply across different regions and countries.
New analysis by Lyxor Asset Management this week pointed to “uneven recovery prospects” across different EM countries and markets following the pandemic, stemming from various factors including differing regional responses to the crisis, business cycles, government support for economies, and reliance on oil markets, among other things.
Emerging markets-focused hedge funds lost 8.5 per cent last month, according to Lyxor stats, as the dramatic sell-off in developed markets spread
Last month, the impact of coronavirus caused stock markets to plummet. This led to a huge spike in volatility, with the VIX Index hitting a high of 82.69 on 16 March, benefiting macro strategies (according to the latest Q1 performance figures) as well as statistical arbitrage strategies like New Jersey-based Blueshift Asset Management.
