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Hedge funds posted gains across equity hedge, event driven and relative value arbitrage strategies in July, as most strategies reversed losses from the prior month on strong earnings, acceleration of M&A activity, moderating concerns of a sharp rise in interest rates and receding macro risks.
The HFRI Fund Weighted Composite gained 1.4 per cent for the month, the highest monthly performance since January, according to data released by HFR.
The HFRI Equity Hedge Index led strategy performance in July with a gain of +2.5 per cent; equity hedge gains were broad based across sub-strategies, sparked by strong earnings
Alceda has applied for a licence as an Alternative Investment Fund Manager (AIFM) with Alceda Asset Management GmbH in Germany and Alceda Fund Management SA in Luxembourg.
The company’s international growth has been driven in part by the Alternative Investment Fund Managers Directive (AIFMD), which entered into force on 22 July 2013, and the growing demand for funds in a globally recognised format.
The AIFMD takes a “one size fits all” approach and encompasses AIFMs of all alternative investment funds (AIF) which are not covered by the UCITS Directive. The intention behind the directive is to create harmonised
The possibility that hedge funds are making a comeback has been explored in the media recently, suggesting that investors are once again hungry for the huge returns these funds offered a decade ago, as their companies return to profitability. Recent S&P 500 index results suggest that US equities are second only to their Japanese counterparts.
One of the reasons behind this re-emergence is the perceived recovery of the US economy. American markets are performing much better than markets in Europe. Though there is a case to be made for Asian equities, amongst developed markets, the US seems to be back
Interest rates look set to stay at record lows until 2016 following guidance in the Bank of England’s latest inflation report. However, new Bank Governor Mark Carney added three “knockout” caveats that could trigger an earlier rate rise, although their credibility is in question. In the meantime, UK savers’ tough challenge to generate a real return on their cash savings continues, says Alan Higgins (pictured), Chief Investment Officer, UK at Coutts…
Rate rise linked to unemployment
In its latest inflation report, the Monetary Policy Committee (MPC) said that it does not intend to raise the Bank Rate from its current
The Depository Trust & Clearing Corporation (DTCC) has identified a number of emerging trends that could potentially impact the industry’s ability to protect against new and unidentified threats to the financial system.
The DTCC’s recent white paper, entitled Beyond the Horizon: A White Paper to the Industry on Systemic Risk, reports that despite progress over the past five years, systemic risks facing the global financial services industry are growing in complexity, are more difficult to anticipate and that new gaps continue to surface.
These potential threats include a rise in cyber-attacks that can easily thwart US and EU
The Securities and Exchange Commission has obtained an emergency court order to halt a hedge fund investment scheme by a former Marine living in the Chicago area who has been masquerading as a successful trader to defraud fellow veterans, current military, and other investors.
The SEC alleges that Clayton A Cohn and his hedge fund management firm Market Action Advisors raised nearly USD1.8m from investors through a hedge fund he managed.
Cohn lied to investors about his success as a trader, the performance of the hedge fund, his use of investor proceeds, and his personal stake in the
Hedge fund flows went negative for the first time this year in June, according to estimates from BraclayHedge and Trim Tabs based on data from 3,369 funds.
Hedge fund investors redeemed a net USD8.6bn (0.4 per cent of assets) in June, the largest outflow since October 2012 (USD10.3bn outflow) and a sharp turnaround from an USD18.8bn inflow in May.
“Despite the June setback, year to date flows to the hedge fund industry stayed,” says Sol Waksman, president and founder of BarclayHedge. “In the first five months of this year the industry took in USD35.7bn, compared with just USD484m
INDOS Financial, an independent Alternative Investment Fund Managers Directive (AIFMD) depositary business, has selected the accountancy and business advisory firm BDO to provide advisory and SOC1/ISAE 3402 (formerly SAS70) assurance services.
Bill Prew (pictured), chief executive of INDOS Financial, says: “We have already made a significant investment developing our AIFMD depositary oversight procedures and recognise the importance of ensuring they are robust and fit for purpose. We are committed to delivering independent SOC1/ISAE 3402 assurance reporting to our clients. We selected BDO because they have significant experience of both the AIFMD and working with the hedge fund industry including hedge
Liquidnet, the global institutional trading network, has expanded its commission management services (CMS) to members in Europe.
Since 2011, Liquidnet has offered a suite of commission management solutions designed to reduce the conflicts that stem from the simultaneous pursuit of best execution and the need to manage commission payments.
Liquidnet’s CMS services available to members across Europe will include:
• Liquidnet Commission Analyzer – Designed to help traders maximise every commission as they track against research targets. The Web-based interface provides buy-side institutions with the ability to gain immediate insight into their commission spend and balances on
Neil Williams (pictured), Chief Economist for Hermes’ Global Government & Inflation Bonds, on Bonk of England Governor Mark Carney’s forward guidance…
Governor Carney is right to be cautious about the ‘sugar-rush’ recovery so far, and keeping his stimulus options, such as QE, on the table. At first glance, though, marrying ‘forward guidance’ on rates with a 2% CPI target deferred another six-12 months to the end of 2015 will worry some he is further subordinating inflation-control to growth considerations. The MPC’s choice of unemployment as a policy-yardstick also seems as much as ‘puzzle’ as the puzzle it has posed them
