NEWSLETTER

FIS Carpe Diem Hedge Fund eBook

hedgeweek hugh leask captioned.jpgAfter a topsy-turvy 12 months of performance, quantitative hedge funds were firmly in the spotlight again this week.

Stockholm-based systematic investing pioneer IPM announced it was shutting down after some 23 years in business. The macro-focused firm, which has seen its assets dwindle from USD9 billion to around USD1 billion, admitted the Covid-19 pandemic has aggravated an already challenging situation over the past year, which was underscored by “lacklustre performance and significant outflows”.

On the flipside, however, credit heads at Boston-based Man Numeric are offering an optimistic outlook on credit-focused computer-based strategies. The firm’s credit co-heads explained how the growth and evolution of quant systems is strengthening their handle on credit markets, a less liquid and more complex asset class traditionally considered beyond the reach of most algo-based funds.

Elsewhere, Nickel Digital Asset Management’s flagship systematic market-neutral arbitrage strategy continues to capitalise on digital currency volatility. In this week’s feature story, CEO Anatoly Crachilov discusses bitcoin’s price journey, digital assets’ diversifying qualities, and why the firm is broadening its product range in line with the evolving opportunity set in crypto markets. 

Elsewhere, BKCoin Capital has hired Mark Treinkman as head of quantitative trading as the crypto-focused hedge fund looks to strengthen its capabilities amid the “growing appetite” for digital assets among institutional investors.

Meanwhile, hedge fund short sellers are still stacking up bearish bets against Petrofac, the global oilfield services provider whose revenues have tumbled amid an ongoing fraud investigation. Regulatory disclosures show BlackRock, CapeView, Engadine, and WorldQuant are holding negative wagers in the London-listed firm.

Sustainability investing continues to loom large over the industry, and the ways in which the alternative asset management sector is adapting to the new ESG reality garners considerable column inches. But a wide-ranging new investor survey by bfinance suggests hedge funds remain well behind other sectors such as private equity and real estate when it comes to integrating ESG factors into their portfolios.

Hugh Leask
Editor, Hedgeweek

 

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