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Underwhelming performance in 2015 and high investor dissatisfaction have reduced inflows and demand for CTA funds, according to a report release by Preqin.
Having recorded returns of +10.85 per cent in 2014, their strongest performance since returning +15.70 per cent in 2010, CTAs saw further good performance in Q1 2015 as they posted returns of +4.29 per cent. However, negative returns in Q2 (-3.74 per cent) and Q3 (-0.16 per cent) saw volatile swings in CTA performance, and as of the end of October Preqin’s CTA benchmark has recorded YTD losses of -0.39 per cent. In contrast, all other hedge
The London Metal Exchange (LME) is planning to introduce a cap on the rent that can be charged by an LME-approved warehouse for metal held in a delivery queue, and an increased minimum load-out rate for metal stored in LME warehouses.
The LME’s decision comes in response to market-wide discussion and consultations.
Since 1 July 2015, the LME has sought feedback on a proposed increase in the standard load-out rate (LORI) and on suggested queue-based rent capping (QBRC) rules. It has received 20 responses to the consultations overall.
After considering respondents’ views, the LME now intends to impose
Euronext is to launch Spotlight options on ABN AMRO Group as of 26 November on its Amsterdam derivatives market. The options (ABN) follow the company’s successful IPO and listing on Euronext Amsterdam, that took take place on 20 November.
Spotlight options are a special segment on the derivatives markets of Euronext, dedicated to the development of new option classes on newly listed companies and other securities requested by market participants. These options give additional visibility to underlying assets through a unique combination of liquidity provider support and promotion by sponsoring brokers. The options classes initially have short-term maturities of one,
CLS Group (CLS), a provider of risk mitigation and operational services for the forex (FX) market, and Markit, a provider of financial information services, have launched a new FX settlement service for the cross currency swaps market.
Cross currency swap trades expose counterparties to significant settlement risk due to the high value of initial and final principal exchanges. The service provides a streamlined process for the payments related to these trades by incorporating them into CLS’s existing unique payment-versus-payment (PvP) settlement service. CLS receives settlement instructions from cross currency swaps electronically confirmed using MarkitSERV, the OTC derivatives trade processing service
Commodity Futures Trading Commission chairman Timothy Massad (pictured) comments on the proposed rule on automated trading…
The Commission has approved a proposal that addresses the increased use of automated trading in our markets. I strongly support this important action. In the futures markets, today almost all trading is electronic in some form. And over the last few years, more than 70 per cent of all trading has become automated.
Automated trading has brought many benefits to market participants. These include more efficient execution, lower spreads and greater transparency. But its extensive use also raises important policy and supervisory questions and concerns.
The
Baird is to acquire Chautauqua Capital Management, a global investment manager based in Boulder, Colorado. The deal will enable Chautauqua Capital to focus on the performance of the firm’s global and international investment strategies while Baird provides the back office services and support for Chautauqua Capital clients.
The transaction is expected to close in early 2016.
Chautauqua Capital’s globally experienced investment team is led by Chief Investment Officer Brian Beitner, CFA. Beitner is a veteran investor who was previously a senior portfolio manager of Trust Company of the West’s Concentrated Core Equities portfolio management team, which he joined in
Commodity Futures Trading Commission chairman Timothy Massad (pictured) comments on the proposed rule on automated trading…
The Commission has approved a proposal that addresses the increased use of automated trading in our markets. I strongly support this important action. In the futures markets, today almost all trading is electronic in some form. And over the last few years, more than 70 per cent of all trading has become automated.
Automated trading has brought many benefits to market participants. These include more efficient execution, lower spreads and greater transparency. But its extensive use also raises important policy and supervisory questions and concerns.
The
In this extract from November’s Preqin Hedge Fund Spotlight, Alastair Hannah takes a detailed look at CTA launches, different trading methodologies, strategies and markets traded, as well as providing an outlook for the rest of the year.
CTA launches
Fifty CTAs have launched in the first nine months of 2015 to 30 September (Fig 1). Although the number of funds launched this year is likely to grow as managers bring new funds to market in the final quarter, and also due to more data becoming available, 2015 looks set for the fewest CTA launches since 2006. Similarly, the proportion
SS&C Technologies Holdings has appointed Smita Conjeevaram (pictured), an industry veteran with decades of experience leading the operations of global financial services companies, to the firm’s Board of Directors.
A CPA with ten years of experience in the Big 4, Conjeevaram is a well qualified financial expert with significant regulatory and international tax expertise. In her most recent operational role, she served as chief financial officer of the credit hedge funds of Fortress Investment Group, a USD74 billion global investment firm. Prior to that, she served as the CFO of Everquest Financial, Strategic Value Partners, ESL Investments and Sentinel Advisors.
Depressed share price valuations and governance concerns have ignited shareholder activism campaigns against three business development companies (BDCs) over the last several months, including two rated by Fitch Ratings.
Fitch believes the heightened dialogue may lead to strengthened oversight, which would be beneficial for BDC creditors, provided other equity-friendly measures are not over emphasised.
The Fitch-rated universe of BDCs was trading at an average discount to net asset value of 14.3 per cent as of 19 November. Given the significant number of new BDCs operating, variations in governance quality have emerged. Activist presence may trigger more widespread attention to
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