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Asia-based hedge funds are on course to chalk up their worst annual performance figures in 12 years, with long-short stock-picking funds having been caught out by volatility in China, according to a report by Reuters.
While Asia nmacro strategy funds, like their counterparts elsewhere in the world, have benefited from big global shifts in interest rates, the report cites a series of China factors that have proved problematic for other hedge funds including China unexpectedly loosening its rigid Covid-19 movement and testing controls, and. President Xi Jinping’s consolidation of power is another factor that has impacted the performance of equity
Bill Harnisch, the chief investment officer at hedge fund Peconic Partners, is forecasting that stocks will struggle in the coming years, with the S&P 500 trapped in a band between 2,500 and 4,400 for the next 18-36 months, according to a report by Bloomberg.
The report cites Harnisch, who has chalked up a 29% return so far this year on the back of a “prescient call on inflation 15 months ago”, as saying that he expects the Federal Reserve will be forced to keep rates higher for longer than some investors are hoping. And wile stocks may rally periodically, any
The world’s largest hedge fund firms are attracting the lion’s share of investor allocations and the brightest talent according to a report by Bloomberg, with 2023 set to be a pivotal year for the $4 trillion industry.
The overwhelming majority of hedge fund indices are negative so far this year, but multi-strategy and macro funds, which have attracted the largest share of investor cash, have posted gains and helped to shield clients from a stinging stock market sell-off prompted by rising interest rates and a pivot away from years of quantitative easing by central banks.
Multi-strategy giants Citadel and Millennium
A number of Brazil-based hedge funds have upped their bets against the country’s equity market on the back of an expected deterioration in Brazil’s fiscal outlook under president Luiz Inacio Lula da Silva, according to a report by Bloomberg.
Legacy Capital, XP Asset Management and Genoa Capital have all reportedly built up their short positions against domestic stocks, while Verde Asset Management, has slashed the equity exposure of its flagship fund from its usual 25% to just 15%.
The report cites Felipe Guerra, founding parter at Legacy as saying that equity markets look expensive “all over” including in Brazil. Speaking
Despite notching up average annualised returns of -6.9% up to the end of September, credit hedge funds are finding favour with investors with 41 per cent saying they want to increase their exposure to the strategy, according to report by Institutional Investor.
Bad bets on everything from currencies to commodities saw Brazil’s top-performing hedge fund over the past two years, the SPX Raptor Fund, record a record monthly loss in November, according to a report by BNN Bloomberg.
The report cites a note sent to investors by the fund’s manager, SPX Capital, as revealing that the fund chalked up its biggest monthly decline since launching in December 2010, with an 11% fall after fees.
“The main negative contributors were rates and foreign-currency” bets, the fund wrote in the note. Wagers in equity, commodities and credit markets also led to losses, although to
The US Commodity Futures Trading Commission has filed a lawsuit against hedge fund Glen Point Capital and its founder Neil Phillips over an alleged scheme to illegally trigger payouts on two options contracts totalling $30 million.
Tourmaline Partners, an outsourced trading solutions firm for hedge funds and other asset managers, has appointed Matt Ney as a managing director and senior equity trader in the the firm’s Connecticut headquarters.
Ney joins Tourmaline Partners with fifteen years of experience at Viking Global Investors, including eleven years of experience trading US equities and specialising in Technology, Media and Telecom (TMT), Industrials and Energy.
For four years he ran Viking’s London office, overseeing all European equity trading.
Ney is the latest in a series of significant hires for Tourmaline with firm having already added key staff in London
The new digital assets hedge fund launched by Brevan Howard Asset Management has come through this year’s cryptocurrency crash relatively unscathed, according to a report by Bloomberg, restricting losses to single figures.
The report cites unnamed sources as revealing the the BH Digital Multi-Strategy Fund is down about 5% YTD, although it is yet to deploy all of the $1 billion it raised for investments.
Cryptocurrency hedge funds tracked by Bloomberg, meanwhile, slumped 43% on average as bitcoin’s roughly-60% decline and the recent collapse of crypto exchange FTX caused turmoil in the digital assets space.
Losses in single figures
Intercontinental Exchange, a global provider of data, technology and market infrastructure, has expanded the ICE Global Network in the Asia Pacific region, with new access centres in Hong Kong, Shanghai and Tokyo.
