Hedge funds have attracted more than USD27 billion of new money from investors since the start of the year, according to new eVestment research published this week. That number represents an impressive rebound from the near USD60 billion of capital outflows suffered by the industry in 2020. Flows data points to continued dispersion across strategy types, however, with managed futures funds drawing in more client capital in recent months, while macro and long/short equity funds registered sharp outflows.
This resurgence in allocator appetite is underpinned by strong performance metrics this year. New quarterly analysis by hedge fund asset administrator Citco shows hedge funds’ weighted average returns more than doubled from 2.75 per cent in Q1 to some 6 per cent in Q2, with over four-fifths of all mangers ending the three-month period in positive territory.
One such fund is Insch Kintore, the gold- and currency-focused systematic trend-following strategy run by former AHL director Christopher Cruden. Despite the precious metal’s see-saw movements over the course of 2021, the veteran gold trader’s novel fund has withstood the disruption to remain in positive territory this year.
Geneva Capital Partners, a European high-yield credit-focused family office founded by former RBS principal strategies head Steven Behr, is opening up to outside money. The fund, which is built around a bottom-up, research-driven, opportunistic trading approach, has fostered a stellar track record over the past eight years, and will look to capitalise on a range of investment opportunities surfacing in high-yield markets.
With correlations among traditional assets continuing to be a live issue for money managers of all stripes, Marc Syz, co-founder and managing partner at Syz Capital, believes investors should now look beyond hedge funds and private equity in their quest to boost portfolio returns amid growing market uncertainty.
In a commentary this week, Syz said certain niche assets – such as litigation finance, royalties and life settlements – can meet the burgeoning allocator demand for uncorrelated returns to help stave off the impact of rising volatility and economic uncertainty.
With the annual Hedgeweek Americas Awards rapidly approaching, three strategies are in contention for the Best Macro Hedge Fund category, one of 29 fund manager awards to be announced at an exclusive presentation ceremony and industry networking event held at The University Club of New York on 21 October.
They are: HonTe Advisors’ HonTe LH Macro Onshore Fund, Pacific Investment Management Co’s PIMCO Commodity Core Alpha Offshore Fund, and the Calvion Capital Master Fund, run by Calvion Capital Management.
Hosted by Hedgeweek, with fund manager data being provided in partnership with Bloomberg, the event honours excellence among hedge fund managers and service providers in the Americas region, and is voted for by participants within the hedge fund industry itself.