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FUNDS
Funds of hedge funds generated an average gain of 4.2 per cent during the first six months of the year, outflanking long/short equity hedge funds and convertible arbitrage strategies, with larger portfolios pulling ahead of the pack as bigger proved to be better in H1.
New analysis by Citco Fund Services shows funds of hedge funds maintained their positive momentum from 2020 – when they ended the year up more than 11 per cent on average – with a 4.2 per cent average return, and a median return of 4.3 per cent, between January and June this year.
The “vast
INVESTMENT
Over the past four years, high-net-worth investors have shown a preference for multi-strat specialists, as allocators search for hedge fund strategies capable of better controlling risks and locking-in returns.
SHORT-SELLING
Hedge fund short sellers betting against Cineworld have seen their bearish positions tank after the global cinema chain’s share price rocketed on the back of the new James Bond movie release.
NEWS
As hedge funds continue to ride out cryptocurrencies’ volatility, new industry research suggests larger institutional investors remain reluctant to pile into digital assets in any meaningful sense, despite the strong returns generated by managers this year.
NEWS
Global hedge fund industry assets are surging to record levels.
New data published by BarclayHedge shows total industry assets have now mushroomed to USD4.4 trillion, with hedge funds raking in USD18.3 billion of new inflows from allocators during July, as managers scored a USD7.3 billion trading profit for the month.
Hedge funds have now recorded a fifth consecutive month of positive investor flows, after allocators poured in USD16.6 billion in June, USD36 billion in May, USD23.3 billion in April and USD19.1 billion in March, according to the Barclay Fund Flow Indicator.
In the 12-month period to the end of July,
Sustainable Investment
Man GLG, the discretionary investing unit of London-listed global alternative investment giant Man Group, has launched a new sustainability-focused long/short equity hedge fund which will trade across regions and sectors with a positive ESG bias.
The Man GLG RI Global Sustainable Growth Alternative UCITS strategy – which is classified as an Article 8 product under the EU’s Sustainable Finance Disclosures Regulation (SFDR) – is targeting absolute returns. It takes a positive ESG bias in global markets, combining a high-conviction long portfolio of 25-45 stocks with a short book designed to hedge market and factor risk. The short portfolio also aims
Fund Performance
The recent surge in natural gas prices is helping to generate eye-catching returns for Drury Capital, the long-running US trend-following hedge fund firm led by former grain trader Bernard Drury.
Investment
High-net-worth clients from in and around the Southern United States are continuing to favour allocations to an array of niche credit strategies, according to a Dallas-based investment advisor.
ACTIVISM
Nippon Active Value, a Japan-focused activist fund strategy, has pushed through a management buyout of Sakai Ovex, a Fukui-based dye and textiles company, following an almost year-long engagement campaign, generating a 102.5 per cent return on the position.
Nippon Active Value, which is advised by Rising Sun Management, realised more than double its original investment in Sakai Ovex as a result of the buyout, which is the first and only example this year of a public company in Japan engaged by activists being taken private.
“The untapped value of the business was something we identified immediately and the valuation of
MANAGER INSIGHTS
EJF Capital, which invests long-only and long/short in both equities and credit across the financial services spectrum, believes it is well-placed to navigate the evolving investment landscape, as inflation looms large over markets and the European Central Bank begins winding down its emergency bond-buying pandemic support programme.
