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ESG
With the COP26 climate summit underway in Glasgow, equity long/short hedge funds can capitalise on the renewed focus on sustainability, while climate change and energy price volatility heralds opportunities for certain macro managers.
Hedge funds may have endured a bumpy patch in the third quarter, but Man FRM’s chief investment officer Jens Foehrenbach is upbeat on the sector’s Q4 prospects.
Man FRM’s Q4 Quarterly Outlook said the heightened focus on environmental, social and governance (ESG) factors heralds fresh investment opportunities for equity long/short hedge fund strategies, which have suffered lately as a result of crowded long trades – particularly in
HEDGE FUNDS
Brummer & Partners’ flagship multi-strategy hedge fund vehicle ended last month in marginally positive territory, as solid gains made by its systematic trend-following managers were set against hefty losses in its fixed income relative value exposures, which were hit by short-term interest rate surges in Sweden.
The Brummer Multi-Strategy (BMS) fund made a 0.2 per cent gain in its SEK and USD classes during October, but it remains down 0.3 per cent over the 10-month period since the start of January. The twice leveraged BMS 2xL version gained 0.3 per cent last month, but year-to-date it also is languishing in
NEWS
Corinthian Digital Asset Management, a diversified digital assets offshoot of London-based crypto arbitrage hedge fund Argentium, has named ex-Macquarie and JP Morgan equity research head Peter Redhead as partner and chief operating officer.
Redhead joins as Corinthian, which was established by Argentium founder Paul Frost-Smith, prepares to open its debut hedge fund strategy Chiron to external capital in February 2022.
Redhead previously spent more than five years at Macquarie Global, most recently as global head of equity research. Earlier, he had been managing director and head of EMEA equity research and head of Asian equity research at JP Morgan.
Over
INVESTMENTS
AFBI, a new quantitative multi-manager platform led by former Tudor and Millennium portfolio manager Pierre-Yves Guillo, has secured an anchor investment from alternative investment seeder New Holland Capital.
Established in May this year, AFBI looks to generate uncorrelated returns across a diverse set of liquid quant strategies, using alternative data, proprietary portfolio construction and robust risk management techniques.
Specifically, the Florida-based firm’s strategies include long/short equity investing around digital customer traffic, systematic investments in Chinese commodities futures, real-time mining of alternative datasets in regional macro markets globally, and short-horizon low-latency FX trading.
“New Holland Capital provided us with a sizeable
FUND PERFORMANCE
CTAs and trend-following hedge funds have strengthened their returns as October draws to a close, with recent gains pushing the sub-sector’s year-to-date returns further into double-digit territory.
LONG/SHORT INVESTMENT
Boston-headquartered Invenomic Capital Management has launched a new UCITS version of its US-focused long/short equities strategy.
IMPACT INVESTMENTS
As the 2021 UN Climate Change Conference (COP26) begins in Glasgow this weekend, hedge fund managers remain evenly split over the incorporation of ESG (environmental, social and governance) factors and sustainability metrics into their investment processes, according to a new poll.
PARTNER FEATURE
FX trading is often seen as the poor cousin of equities when it comes to establishing and retaining a relationship with prime brokers (PBs); yet FX traders need access to services and liquidity just the same. One way for funds to access these requirements is the prime of prime model.
LONG/SHORT EQUITY
Man GLG, the discretionary hedge fund unit of London-headquartered global asset management giant Man Group, now holds the largest number of short positions against UK-listed stocks, followed by Marshall Wace and BlackRock, according to new industry data.
FUND PERFORMANCE
Hedge funds are well-placed to outperform other assets classes in a potentially choppy market environment during the fourth quarter, with commodities, event driven and certain credit strategies faced with a rich opportunity set and strong upside potential as markets adjust to a post-Covid world.
In its latest ‘Fourth-Quarter Hedge-Fund Strategy Outlook’, K2 Advisors said global equities and bond markets are now locked in a “tug-of-war” between good news and bad news, which is shaping the way investors position their portfolios.
“Change creates opportunities for those nimble enough to capture the new tailwinds while hedging out the risks associated with a
