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Sector rotations caused headwinds for hedge funds last week with the Lyxor Hedge Fund Index falling by 1 per cent, according to the latest Weekly Brief from the Lyxor Cross Asset Research team.
L/S Equity funds underperformed. Variable biased funds were hit by sector rotations out of tech on their long portfolio books. On the other hand, Neutral funds suffered from their aggressive positions through long momentum and short low beta and quality stocks.
By contrast, Event-Driven funds were resilient. Merger Arbitrage funds outperformed as they benefitted from the tightening of deal spreads such as Time Warner / AT&T
After a strong October, Alternative UCITS funds produced slightly negative returns on average in November, according to the latest LuxHedge Alternative UCITS market overview.
The LuxHedge Global Alternative UCITS index lost 0.13 per cent during the month, bringing YTD gains to 2.16 per cent. The total universe currently consists of well over 1400 funds, with four out of 10 posting gains in November and largely more than 75 per cent in positive territory year-to-date. In line with the trend of past months and years, investors kept increasing Alternative UCITS allocations again in November. Assets under Management for the total universe
Rational Funds, a family of funds rooted in the investment philosophy of applying a rational approach to investing, has converted the Rational Real Strategies Fund into the Rational Hedged Return Fund (HRSTX).
The fund is now sub-advised by Warrington Asset Management and implements an options-based strategy that primarily invests in long and short call and put options on futures contracts on the S&P 500 Index.
“The Rational Hedged Return Fund relies on a proven investment strategy previously offered only as a separately managed account,” says Scott Kimple, Portfolio Manager of HRSTX. The Fund seeks total return consisting of long-term
Outsourced investment office Partners Capital has added to its senior management team with the promotions of David Shushan and Toby Joll from Managing Director to Partner.
Four other promotions from Senior Principal to Managing Director were announced. This takes the firm to 17 Partners and Managing Directors, led by Stan Miranda as Founder and CEO.
Based in Boston, Shushan was promoted to Partner. Shushan joined Partners Capital in 2008 from McKinsey & Company and is responsible for the firm’s US Taxable Client Strategy as well as managing many of the largest US private client accounts.
Also being promoted
BGC Partners, a global brokerage company servicing the financial and real estate markets, has selected Bloomberg Entity Exchange to help the clients of its EU regulated entities adhere to MiFID II client repapering and rulebook disclosure rules (BGC).
BGC has applied to operate Organised Trading Facilities (OTFs) and Multilateral Trading Facilities (MTFs) under the MiFID II regime. As such, BGC is required to collect information related to venue participants and related transaction activity. MiFID II obliges brokers like BGC to collect and maintain more detailed information about their clients, amend business terms and conditions and disclose rulebook information about the
Hedge Funds gained 0.62 per cent in November according to the Barclay Hedge Fund Index compiled by BarclayHedge. The index is up 9.08 per cent in 2017, and has had 13 consecutive winning months during which it gained 11.20 per cent return.
“The possibility that the US Senate might pass a tax bill rallied domestic equity markets,” says Sol Waksman (pictured), founder and president of BarclayHedge. “For each of the past 13 months, the monthly close of the S&P 500 has set a new record high.”
Once again, the Technology Index powered upward with a 3.63 per cent return in November.
Hedge funds marked their 13th consecutive month of positive returns in November with 0.47 per cent average returns for the month, bringing year-to-date returns for the industry to +7.70 per cent., according to eVestment’s latest Hedge Fund Industry Performance Report.
Asia-focused funds in general are performing exceptionally well: India-focused funds returned +1.77 per cent in November and +27.33 per cent YTD; Asia ex-Japan-focused funds returned +0.72 per cent in November and +19.74 per cent YTD; and Japan-focused funds returned +1.05 per cent in November and +12.64 per cent YTD.
In spite of overall strong returns, there were some losers
The Exchange Council European Energy Exchange (EEX) has approved and confirmed all necessary changes to a number of rules and regulations to ensure that the Exchange is fully compliant and prepared for the introduction of MiFID II, which comes into effect on 3 January 2018.
In particular, the Council approved the legal framework to facilitate the transition from Non-MTF trading to the new Organised Trading Facility (OTF). The application for OTF status is currently ongoing and is expected to be granted by the Exchange’s supervisory authority when MiFID II regulation comes into effect.
The Exchange Council also approved the introduction
By George Ralph, RFA – As a technologist, it’s apparent to me that the road to success lies with digitisation, but it can be hard to bring a traditional industry into the digital age. The alternative investment industry is one which is still heavily reliant on tried and tested and partially manual processes throughout the front and back office. However, I think we’ve reached a tipping point whereby not digitising, or using technology to best effect is actually harming profits, and increasing the levels of risk that a firm is exposed to.
From a simple improving efficiency perspective, technology can
One hundred days on from Hurricane Irma, the BVI financial services sector is “back in business” according to BVI Finance.
Just over three months ago the BVI was battered by hurricanes Irma and Maria, with both causing significant damage to key infrastructure, including power, water, housing and roads.
However, due to the immediate activation of comprehensive business continuity plans, core services and operations in the financial services sector continued either on island or via international networks. This meant there was minimal disruption caused to the clients of the financial and professional services firms based in the BVI.
Lorna
