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PERFORMANCE
Trend-following hedge funds and CTA strategies remain in broadly positive territory heading into the final stretch of 2021’s first half, as defensive bets on fixed income look set to pay off against a backdrop characterised by economic recovery and rising inflation.
The 10 biggest trend-following managers, as tracked by Société Générale’s SG Trend Index, have gained 1.42 per cent on average so far this month, driving year-to-date returns to a solid 8.43 per cent.
Similarly, SocGen’s CTA Index – a daily performance measure of 20 of the largest managed futures hedge funds’ returns – has advanced 6.78 per cent since
FUND LAUNCH
London-based GWM Asset Management has launched a novel merger arbitrage hedge fund strategy which uses ESG (environmental, social and governance) factors in its investment process.
The strategy, which rolled out in early May with USD270 million in assets, has a specific focus on mergers and acquisitions in Europe, applying sustainable investment criteria to its position-building and excluding controversial sectors.
Commenting on the launch of the ESG-focused fund, Peter Sartogo, managing partner at GWM said moves towards sustainability within the investment and wealth management communities is now “of crucial importance.”
“For some asset and wealth managers, excluding controversial sectors and stocks
FUND PERFORMANCE
Healthcare-focused equity hedge fund Rhenman & Partners generated further gains last month as falling US unemployment helped push medical insurance stocks higher.
Its flagship healthcare-focused hedge fund finished the first quarter up 5.56 per cent, as a rotation into cyclical equities which stand to gain from the economic recovery underpinned March’s positive returns.
The Rhenman Healthcare Equity Long/Short strategy advanced 3.6 per cent in its main euro-denominated IC1 share class last month. The SEK-denominated RC1 class rose 4.03 per cent and has now made more than 7 per cent since the start of 2021. Over the fund’s 12-year run, it
FUND PERFORMANCE
Hedge funds have made their strongest first-quarter start in more than 20 years, gaining more than 6 per cent in the three-month period to the end of March, with returns powered by a mix of successful calls on deep value equities amid accelerated volatility, renewed economic optimism, and soaring cryptocurrencies.
Hedge Fund Research’s main Fund Weighed Composite Index, a global, equal-weighted benchmark of some 1400 single-manager hedge funds, advanced 6.08 per cent in Q1, following a 1.02 per cent gain in March. The March gain proved to be its sixth consecutive monthly rise, with Q1 its best opening quarter since
OUTLOOK
Hedge funds can capitalise on a “substantial” sector and asset class rotation during the second quarter, as an uneven economic recovery, bumpy vaccine rollouts and an inflationary environment drive dispersion across industries, K2 Advisors said this week.
FUND PERFORMANCE
Managed futures hedge funds have finished the first quarter of the year in positive territory, seizing on upwards trends in equities indices and the US dollar while weathering the recent bond market and commodities upheaval.
RESEARCH
Investor demand for data transparency is set to drive hedge fund firms’ operating costs up by more than 8 per cent over the next five years, hedge fund chief financial officers are predicting.
QUANT FUNDS
Last year proved to be a strong litmus test for the hedge fund industry, with a slew of strategies able to post solid returns in a market that witnessed an incredible trough to peak recovery between Q2 and Q4.
LONG/SHORT INVESTING
Market neutral long/short hedge funds have been boosted by the recent bounce in Momentum stocks – but Lyxor Asset Management strategists believe the strategy is vulnerable to sudden factor rotations over the longer-term.
The performance of Momentum stocks has stabilised in recent weeks, following the sharp correction in November, in turn aiding certain hedge fund strategies – such as market neutral long/short – which have a Momentum bias. As Value names have maintained their recovery, and are starting to be shown in the Momentum risk factor, Lyxor said near-term prospects for market neutral long/short hedge funds have “marginally improved”.
“The
OUTLOOK
Why China’s rebound is rich in alpha opportunities for hedge funds
OUTLOOK
Why China’s rebound is rich in alpha opportunities for hedge funds