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Hedge fund managers tracked by the AlphaClone Hedge Fund Long/Short Index distanced themselves from financial sector investments in the second quarter, representing a steep reversal from the previous quarter in which financials were the index’s most overweight sector relative to the S&P 500.
“The bearish stance may illustrate conviction among hedge funds that financials are fully valued at these levels, especially in light of various high profile scandals that affected the sector negatively,” says Mazin Jadallah (pictured), chief executive of AlphaClone.
Notable financial companies in which the index has sold out include Citigroup, JP Morgan Chase and Hartford Financial. Despite
Hedge funds are continuing to develop risk management practices that fit the needs of investors and fund managers alike, according to a study from the Managed Funds Association, BNY Mellon, and HedgeMark.
The study, entitled “Risk Roadmap: Hedge Funds and Investors’ Evolving Approach to Risk,” uses qualitative and quantitative data collected from the chief risk officers of global hedge funds, institutional investors, prime brokers, and other industry participants.
The data demonstrates the industry’s increasing focus on risk management and transparency. According to survey results, hedge funds project that five years from now 41 per cent of investor reporting will be
Nomura, one of Asia’s leading investment banks, has teamed up with global alternative investment manager Man Group Plc to launch the Nomura Man Systematic Fixed Income Fund.
The fund will provide daily liquidity and aims to generate double-digit annual returns. The underlying strategy, managed by Man Systematic Strategies (MSS), attempts to capture directional opportunities in emerging and developed swap, futures and FX markets. In total 50 markets are targeted, using around 300 systematic trading signals partly developed and traded by AHL, Man Group’s flagship CTA fund, and partly developed by MSS. Andre Rzym oversees the strategy. Ryzm, who has over
Envestnet, a provider of technology-enabled wealth management solutions for investment advisers, has formed a hedge fund research alliance with Fund Evaluation Group (FEG), an institutional investment consulting firm.
The alliance complements the research on separate account managers, mutual funds, ETFs and liquid alternative investments on the Envestnet platform, powered by Envestnet | Prima.
As part of this partnership, advisers will have access to research and due diligence reports on more than 40 hedge funds and hedge fund of funds that are covered by FEG. The research will be available on the Envestnet platform. Advisers will be able to leverage research
The Credit Suisse Liquid Alternative Beta Index was up 0.53 per cent in August, according to Jordan Drachman, head of research for alternative beta strategies at Credit Suisse.
The long/short strategy was the most significant contributor to performance, finishing up 2.05 per cent for the month.
The event driven strategy was the second-highest contributor to performance, finishing up 1.38 per cent for the month. It has the highest performance year-to-date, up 7.10 per cent.
The lines between institutional asset managers and alternative investors are becoming increasingly blurred due to investment strategies, priorities and goals becoming aligned, according to Martin Boyd, president of SunGard’s asset management business.
“The relocation of assets to either alternative or traditional strategies puts greater pressure on funds to perform,” he says. “Therefore, fund managers are looking to technology solutions that help reduce platform complexity, increase risk management and maintain compliance to ultimately assist in the generation of alpha.”
SunGard has identified ten trends shaping the asset management industry. They are:
1. Business continuity plans are becoming more important to hedge funds
The Securities and Exchange Commission has charged an attorney and two others living in South Florida for their roles in a USD27.5m investment scheme that led investors to believe they were purchasing securities consisting of “pre-sold” commodities contracts with a pre-determined profit.
However, the supposed profits actually distributed to investors were largely taken from other investors’ funds.
The SEC halted the scheme last year when it obtained an asset freeze and a court-appointed receiver over the companies involved: Commodities Online LLC and Commodities Online Management LLC. The SEC’s follow-up charges are against the founder and former president of the company,
Newedge has made two appointments in its alternative investment solutions (AIS) group, a part of Newedge’s prime clearing services.
Leslie Richman and Duncan Crawford have been appointed co-global head alternative investment solutions.
Richman is based in Chicago and has been leading alternative investment solutions in the US for nearly two decades.
Crawford is based in London and has run capital introductions globally for the past 12 years. Previously, he held various senior management and trading roles with Newedge and its predecessor firms since 1991.
Keith Johnson has been appointed global head of capital introductions, based in Chicago. He was previously
Alternative investment company Aquila Capital’s AC Risk Parity 12 Fund has achieved four years of consistently positive year-on-year returns.
The fund has delivered 51.2 per cent since its launch, with annualised returns over the period of 10.9 per cent (AC Risk Parity 12 Fund EUR A, as of 31 August).
According to the latest Absolut Report Alternative Ucits Monitor, the AC Risk Parity 12 Fund ranks seventh in the category “Performance YTD (July) – Multi Asset” with a strong performance of 8.1 per cent as of end of July 2012.
Roman Rosslenbroich (pictured), co-founder and chief executive of
The Securities and Exchange Commission has charged a California man with illegally tipping a hedge fund manager with inside information about Nvidia Corporation’s quarterly earnings that he learned from his friend who worked at the company.
The SEC alleges that Hyung Lim of Los Altos, California received USD15,000 and stock tips about a pending corporate acquisition for regularly providing a fellow poker player, Danny Kuo, with non-public details ahead of Nvidia’s quarterly earnings announcements.
Kuo, a hedge fund manager, illegally traded on the information and passed it on to multi-billion dollar hedge fund advisory firms Diamondback Capital Management and Level
