NEWSLETTER

Driving Investment

hedgeweek hugh leask captioned.jpg New analysis published this week has revealed the impact of the recent Omicron-driven market sell-off on hedge funds. 

Hedge Fund Research data shows managers lost more than 2 per cent on average in November, as the new strain of Covid-19 sent markets into a tailspin and investors fleeing, reversing the previous month’s advance. 

The slide – which left equity long/short and global macro-focused hedge funds nursing the biggest losses for the month – has cut the industry’s overall year-to-date returns to 8.73 per cent with less than a month left until year-end.

While the industry remains comfortably in positive territory thanks to strong returns earlier in 2021, the prospect of tighter Covid-19 restrictions and renewed market volatility remains a live risk to strategies of all stripes in the final weeks of the year.

French systematic equity hedge fund Quantology Capital Management has unveiled a novel computer-based strategy which trades stocks operating within the metaverse, the digital landscape built around the creation, ownership and exchange of virtual assets, such as non-fungible tokens (NFTs).

The esoteric strategy – which is the first UCITS-compliant fund focused on this burgeoning sphere â€“ uses proprietary quantitative models to invest in a range of metaverse-focused stocks and sectors, such as internet, AI and blockchain names.

In this week’s feature interview, Manoj Jain and Sohit Khurana â€“ founders of Hong Kong-based event driven and convertible arb hedge fund Maso Capital – discuss how the firm has successfully utilised its extensive M&A, leveraged finance and private equity expertise to build a formidable presence in trading corporate events in Asia-Pacific markets. 

More recently, the firm, which was established in 2012, has gained a strong foothold in the region’s growing SPAC market, and has also successfully pioneered the use of the Cayman Islands’ courts and legal system to improve the value of Chinese delistings.

Elsewhere, as hedge funds’ due diligence and risk management processes come under ever-greater scrutiny, a new white paper published by Landytech examines how a managed service solution can help investment firms better meet the increasingly-complex demands of allocators and regulators.

Hugh Leask
Editor, Hedgeweek

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