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Allianz Global Investors US (AGI US), the US hedge fund unit of German insurance giant Allianz, is to pay USD5.8 billion after pleading guilty to fraud over the collapse of its Structured Alpha funds in 2020.
Demand for aggregating financial information and internal research in one central location has been growing. As hedge fund analysts look to manage information overload and several disparate manual research processes, an overlay of AI-processing power and content can cut research time to a fraction of what it previously was and help elicit more relevant insights.
The coming years will set the scene for technology advancements and geographic growth as clients call for an innovative and competitive alternative to incumbent providers in the prime brokerage space. Given the current volatility and additional scrutiny, reliable providers are critical to managers’ survival, particularly in the context of increasing consolidation.
James Alexander, Executive Director
Although the move to digital platforms may have seemed daunting, especially for firms which historically relied on in-person meetings, the shift has proved positive in several instances and encouraged engagement and communication in ways which otherwise may not have been possible.
“As a marketing firm which relies heavily on travel and face-to-face meetings, Aravis Capital adapted quickly to the new state of affairs,” explains James Alexander, Executive Director at Aravis Capital, “We actually feel energised by the changes we made in our move to digital platforms. We have completely overhauled our digital footprint and the way we
Umberto Borghesi, Strategist, Albemarle Asset Management
A difficult market environment gives those managers able to differentiate themselves from an alpha perspective the opportunity to thrive. This also plays into the growing investor demand for high quality boutique managers, offering targeted strategies.
“This current environment is difficult, but also presents opportunities,” says Umberto Borghesi, strategist at Albemarle Asset Management, “although the increased uncertainty and its ramifications for the economic outlook are challenging, we can be best prepared for this by sticking to our process and being prepared to act both pre-emptively and after the fact, in order to generate the best possible
Some 155 companies will be at risk of activist attacks in the next 18 months, according to the findings of global professional services firm Alvarez & Marsal’s (A&M) latest analysis and predictor of shareholder activism in Europe in 2022.
INSIGHT REPORT
As governments strive to meet sustainability targets, the global push for more formalised ESG standards and frameworks is bringing challenges – as well as opportunities – for hedge funds amid a fractured regulatory landscape.
With the climate emergency increasingly at the centre of the political agenda, and the focus on environmental, social and governance (ESG) factors in financial markets and investment management continuing to expand, global market regulators are driving ahead with the establishment of formal ESG rules and frameworks.
The European Union’s Sustainable Finance Disclosure Regulation (SFDR) – which took effect in March 2021, and forms the core of
Bridgewater Associates, the hedge fund led by billionaire Ray Dalio, has doubled its holdings in Chinese electric vehicle (EV) companies Li Auto and Xpeng, and significantly raised its exposure to Nio haven completely exited its position in Tesla in the first quarter of the year, according to a report by Benzinga.
PARTNER FEATURE
Running a hedge fund is one of the most privileged positions in our capitalist economy. It combines a constantly stimulating intellectual challenge, the potential for significant rewards, and the kind of accountability – in the form of regular, quantifiable measures of performance – that is often missing from the modern workplace.
Hedge funds again outperformed the S&P Total Return Index in April, despite losing 2.66%, bringing the year-to-date loss to -5.55%, according to BarclayHedge.
