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GLOBAL MACRO
Global macro hedge fund Arete Capital Partners is tilting towards shorter-duration assets amid an evolving rate environment which carries far-reaching consequences for inflation and the cost of capital.
hedgeweekLIVE NORTH AMERICA
The trend towards outsourcing – a continually evolving sphere within the global hedge fund industry – is likely to have been further accelerated by the coronavirus pandemic, as managers embrace the ‘digital-first’ approach brought about by the coronavirus lockdown, speakers at this year’s hedgeweekLIVE North America digital summit said.
hedgeweekLIVE NORTH AMERICA
COMMENT
There is precious little to celebrate in the precipitous collapse of Wirecard, the German payments group whose shares have lost 90 per cent in a matter of days amid what now appears to be incontrovertible evidence of a massive and sustained fraud involving at least EUR2 billion of ‘missing’ cash.
But it’s also hard not to feel a slight sense of schadenfreude at the way in which the rapidly escalating scandal has erupted, given Germany’s deep-seated antipathy to hedge funds and the repeated efforts over the years by the country’s authorities to malign and ostracise hedge fund managers.
For corporate
DIGITAL ASSETS
Few sectors have endured such colossal price swings and asset volatility in recent weeks as cryptocurrencies, but speakers at the inaugural DigitalAssetsLIVE summit on Thursday said evolving market infrastructure, growing product selection, and positive investment performance continue to drive digital assets’ institutionalisation, drawing more capital allocators into this once frontier market.
DIGITAL ASSETS
Decentralisation of cryptocurrencies is helping curb systemic risk amid the ongoing digital asset price volatility, Anthony Scaramucci, founder and managing partner of SkyBridge Capital, told Hedgeweek on Thursday.
NEWS
Hedge funds that bet against Wirecard, the German e-payments firm which last week collapsed amid an apparent widespread EUR1.9 billion fraud, showed “bravery and belief” and their actions have ultimately been vindicated, according to Jack Inglis, CEO of the Alternative Investment Management Association.
Using “forensic analysis”, hedge funds knew something was amiss in the scandal-hit DAX 30-listed firm a while ago, Inglis said, noting how the first queries into the company’s accounting stretch back to 2014 when short positions began to emerge.
“Yet the share price still went up. It takes bravery and belief to commit to short positions but
NEWS
New hedge fund launches have slumped to lows not seen since the 2008 global financial crisis, while liquidations hit their highest level since the end of 2015, according to new analysis from Hedge Fund Research.
HFR’s ‘Market Microstructure Report’ for the first quarter of 2020 also reveals that management fees and incentive fees have dropped to their lowest amount since HFR began compiling such data, reflecting the rapidly shifting balance between hedge fund managers and investors.
As hedge fund firms grappled with the impact of the coronavirus pandemic which upended global markets earlier in the year, sending volatility soaring and
FUND LAUNCHES
US investment manager Wealthspring Capital has launched its debut hedge fund strategy, Fountain Opportunities, which aims to capitalise on the ongoing boom in special purpose acquisition companies (SPACs).
The new fund, Fountain Opportunities, will take an opportunistic approach to the SPAC market through selective positioning in all aspects of the SPAC ecosystem and life-cycle, from SPAC to DeSPAC. The fund will employ leverage to buy and trade around positions and offers strategic participation in private investment in public equities. Fountain Opportunities, which will formally launch on 3 May, will pursue an aggressive return profile while taking advantage of the SPAC characteristics that help manage risk.
MARKETS
Continued central bank support amid the Covid-19 pandemic is creating “bubble-style valuations” in markets, according to Chenavari Investment Managers, a London-based credit-focused hedge fund.
COMMENT
Chanos warned investors of a ‘speculative leg-up’ back in November
COMMENT
Chanos warned investors of a ‘speculative leg-up’ back in November