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SUSTAINABLE INVESTING
Fund managers and investors remain split over how they integrate environmental, social and governance (ESG) factors into their risk and investment processes, with industry participants citing a lack of clarity over data reliability, comparability and standardisation as the main challenge.
SUSTAINABLE INVESTING
FUND PERFORMANCE
CTAs and trend-following hedge funds remain on track for their best annual performance since 2014’s landmark performance, with managers continuing profit from continued trends across bonds, equities, indices and commodities markets in the run-up to year-end.
Société Générale’s main CTA Index – which charts the daily performances of 20 of the largest CTAs, including funds managed by Man AHL, Graham Capital, Systematica, AQR, and Aspect Capital – remains up more than 9 per cent this year. It ended October on a high, generating 2.56 per cent for the month, though the first week of November has seen it give back
RESEARCH
Hedge fund strategies have lagged stock markets and traditional equity/bond portfolios in recent years, driving down management and performance fees – but firms led by women and minorities are pulling ahead of their industry peers when it comes to returns, new data published by Bloomberg shows.
MANAGER INSIGHTS
Launched in September 2019, the Trium ESG Emissions Impact Fund uses a market neutral long/short investment strategy to target high-emitting companies in hard-to-abate sectors – such as energy, mining and chemicals – where successful transformations in the form of decarbonisation and lower CO2 emissions can offer attractive long-term returns.
HEDGE FUNDS
Cryptocurrency hedge fund Tyr Capital is tapping into growing investor appetite for digital assets with the launch of a new long-only fund next year, after its main multi-strategy vehicle increased assets and scored double-digit returns this year.
Its main multi-strategy fund, Tyr Capital Arbitrage, is now on track for a 25 per cent gain this year, with a Sharpe ratio above 3.5 since inception for its investors.
Launched in 2019, the strategy – which aims to generate alpha through a diversified set of arbitrage and relative value strategies – has quadrupled its AUM in 2021 thanks to surging investor demand,
FUND PERFORMANCE
Hedge fund managers generated further positive returns across all strategy types in October, which has swelled total global industry assets to a record USD4.04 trillion.
NEWS
Credit Suisse will recommend hedge funds and other clients of its prime services business to BNP Paribas as part of a referral agreement between the banks, after the Switzerland-headquartered group unveiled plans to shutter its prime brokerage operations following losses stemming from the collapse of Archegos Capital Management.
HEDGE FUNDS
Credit Suisse is shutting down most of its hedge fund prime brokerage services following significant losses incurred as a result of Archegos Capital Management’s collapse earlier this year.
ESG INVESTMENTS
Sir Paul Marshall, co-founder, chairman and chief investment officer of UK hedge fund giant Marshall Wace, has donated GBP50 million to the London School of Economics’ Marshall Institute to establish a new accelerator programme aimed at tackling future environmental, health, and social inequality challenges.
The Marshall Impact Accelerator – which is being unveiled on finance day at the COP26 climate summit in Glasgow and is scheduled to launch in spring next year – will provide philanthropic capital for innovative social ventures spanning environment, health, social inequality, public policy and developmental economics challenges.
The initiative will combine LSE’s research expertise and the Marshall
PARTNER FEATURE
Suzanne Beckett from Blick Rothenberg’s Financial Services team takes an in-depth look at partial exemption special methods and the benefits available to private equity firms.
