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Hedge funds increased their exposure to stocks in the financial sector amid the banking turmoil in March, swooping in for a buying opportunity at lower prices, according to a report by Reuters.
Hedge funds raised their exposure to financials more than any other sector, new analysis by S&P shows.
Managers used the bank stress as an early buying opportunity, dismissing speculation that a significant crisis was at play, with an S&P Global Market Intelligence note showing hedge funds grew their exposure to financials by 5.5%, having earlier reduced it by 3.9% in February.
In contrast, traditional asset managers cut their
New York-based hedge fund Versor Investments sees potential growth and profitability in Squarespace, having recently taken a sizable position in the online website building platform, according to a report by BestStocks.
The fund reportedly purchased 28,413 shares of the company’s stock in the fourth quarter, value of approximately $630,000 at the time of purchase signalling their confidence in the company’s future.
Overall, Versor Investments’ acquisition has set tongues wagging within both the financial community as well as other investors who are keeping a keen eye on Squarespace’s stock performance, BestStocks noted.
Several equities research analysts have issued reports on Squarespace’s
The Securities and Exchange Board of India (SEBI) has introduced sweeping new rules governing the fees charged by alternative investment managers including hedge funds, according to a report by Fund Selector Asia.
The new regulations – which take effect on 1 May – will force alternative investment funds to provide direct plan options to investors, which will involve no distribution fee or placement fee, a circular issued earlier this week showed.
Such funds must ensure investors who approach through a registered intermediary, which separately charges the investor any fee, are onboarded through the direct plan only.
Category III alternative funds
Light Street Capital Management has generated double-digit gains in the first quarter of 2023, having earlier suffered a 54% annual loss in 2022, according to a report by Bloomberg.
Glen Kacher’s Menlo Park, California-headquartered firm has seen its Mercury hedge fund advance 19.2% in the first three months of this year. Meanwhile, its Tungsten strategy, which takes a long-only investment approach, also added 28.7% in the first quarter, according to a person familiar with the matter.
As a result of the 2022 rout in technology companies, the attendant losses and redemptions wiped out some 70% of the firm’s assets.
The
Hedge funds returned to positive territory in March, advancing 0.34% for the month, but the industry is lagging the broader stock market, which gained 3.67%, according to data published by Backstop BarclayHedge.
Year-to-date, the hedge fund industry has advanced 2.60% through the end of March, though the S&P 500 Total Return Index gained 7.50% over the same period.
Backstop Barclay Hedge tracks the performances of more than 6,900 hedge funds, funds of funds and CTAs.
A healthy majority of hedge fund subsectors reported positive returns in March. Leading the way was the Technology Index, advancing 4.31% for the month, the
Bronte Capital’s Amalthea hedge fund has taken long bets in UBS and First Citizen, both of which it believes have picked up good assets for a good price as a result of the Credit Suisse and Silicon Valley Bank turmoil, according to a report by the Financial Review.
The Amalthea fund gained 4.92% in Australian dollar terms in March compared to the benchmark MSCI-All Countries World Index’s 3.9%. However, over the Q1 period it was up 7.55%, lagging the benchmark’s 9.23% for the same three-month period.
John Hempton, Bronte’s chief investment officer, said the fund could have produced much bigger
Daniel Loeb, founder and CEO of event driven hedge fund Third Point, is considering taking SiriusPoint private – less than three years after he agreed to combine his hedge fund’s reinsurance business, Third Point Re, with rival Sirius International Insurance Group to form the global specialty insurer, according to a report by Reuters.
The billionaire investor is reportedly exploring options to take the specialty re/insurer SiriusPoint private to help boost the company’s financial position and better execute on its turnaround strategy.
According to Reinsurance News, Loeb holds a 9.34% stake in SiriusPoint, having previously overseen the merger of his reinsurance unit,
Hedge funds continue to attract engineers and other technology talent from the investment banking sector, with managers drawing expertise from the likes of Goldman Sachs and Credit Suisse, according to a report by efinancialcareers.
Brevan Howard has hired London-based Neal MacGowan as an executive IT support specialist after 22 years at Credit Suisse. MacGowan spent much of those two decades working as a support specialist on the trading floor. Shashank Sharma, a quant developer, also joined Brevan after six and a half years at JPMorgan.
Brevan has also been strengthening its technology and controls team during 2023 and hired former
Managed futures strategies, which are the most active trader of S&P 500 futures, now have the lowest exposure to the index since June 2017, underlining the hedge fund industry’s strong bearish stance towards equity markets, according to a report by Institutional Investor.
Hedge funds’ bearish outlook runs counter to the positive performance of the market in the first quarter of 2023. From January to March, the S&P 500 and Nasdaq indices were up 7%and 16.8%, respectively.
Short sellers, including hedge funds and other investors betting against the market, lost an average of 6.7% over the same period, according to data
New York-based activist hedge fund Pura Vida has entered a boardroom battle at global aesthetics device company Cutera Inc with plans to push ahead with “an orderly CEO succession process”, according to a report by Reuters.
Amid perceived factionalisation, Pura Vida, which owns a 7% stake in Cutera, said it wants the board to “move the company forward with an orderly CEO succession process” with the help of a prominent executive search firm.
During the search, Pura Vida wants the current CEO to remain at the helm.
If the board fails settle its disagreements, Pura Vida aims to push ahead
