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Investor demand for data transparency is set to drive hedge fund firms’ operating costs up by more than 8 per cent over the next five years, hedge fund chief financial officers are predicting.
StoneX Financial Pte Ltd (StoneX), a subsidiary of StoneX Group Inc, has become an Overseas Intermediary of the Dalian Commodity Exchange (DCE), Shanghai International Energy Exchange (INE), and the Zhengzhou Commodity Exchange (ZCE), giving it the ability to offer access to key Chinese commodities futures contracts available to international clients.
StoneX clients will now have access to these key Chinese commodity markets and the ability to trade internationalised contracts such as the DCE Iron Ore futures, which is one of the most heavily traded metals futures contracts in the world.
Lian Tuck (LT) Lee, Head of Listed Derivatives,
Quantumrock, the AI driven investment manager based in Munich, has appointed Michael Block to join the firm’s Senior Executive Council.
Read the full story at Institutional Asset Manager…
ESG data analysis and how it links to performance will be the focus of the next FIS webinar, in conjunction with Hedgeweek, during which we will ask: “How can AI help illustrate your ESG edge to investors?”
Cryptocurrency’s recent travails offer “exciting” investment opportunities thanks to the asset’s favourable asymmetric risk/reward profile, says Robb Rill, chairman and managing director of boutique alternative investment firm the Strategic Funds, which earlier this month launched a quantitative crypto hedge fund.
Established in 2018, the Strategic Funds offers boutique alternative investment strategies to high-net worth individuals and institutions. Its parent firm the Strategic Group, which was founded in 1998 and has been based in Puerto Rico since 2013, runs strategies from across the private equity and alternative investment spectrum.
The firm recently unveiled its Strategic Crypto Capital Partners Fund, a quantitative
Market volatility and high volume have exposed weaknesses in trading systems and technology offerings. This has led to reductions in service and increased down time in trading offerings. Providers with the ability to overcome these challenges have stood in good stead with clients.
Buoyancy in the hedge fund industry, following a year of strong performance, bodes well for the prime brokerage business. Numerous new funds are being launched and prudent prime players are benefiting from the renewed interest in the asset class.
Transparency, trust and a clear understanding of the prime broker’s risk management process can help managers build long-term sustainable relationships with their providers. This is especially critical among boutique and mini-prime brokers. These firms are meeting a growing need among emerging hedge fund managers as the traditional providers step further away from this part of the industry.
Although it ushered in a whole host of new challenges, when it came to client and audience engagement, the Covid-19 pandemic levelled the playing field between the big banks and smaller players in the prime brokerage market. It encouraged dialogue and boosted transparency. Further, in view of the expected growth in outsourced trading in Europe and Asia, ensuring a good fit between providers and clients has never been more relevant.
“In a way, the pandemic helped us,” explains Leor Shapiro, Global Head of Capital Intelligence, Jefferies. “As it relates to my team in terms of events, it meant we could
By A Paris – Just four months into 2021 and the hedge fund industry had already experienced two major events affecting prime brokerage – the GameStop run and the Archegos collapse. Though these incidents may have rocked some firms, others have held strong and are almost appreciative of the greater scrutiny resulting from such episodes.
“As a result of the GameStop experience, prime brokers have been forced to be far more vigilant with their clients’ exposure to names they were trading,” notes Jack Seibald, Managing Director and Global Co-Head of Prime Brokerage & Outsourced Trading, Cowen. “We changed our margin and risk rules
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