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FUND FLOWS
The hedge fund industry returned to positive monthly inflows in October, bringing in USD5.2 billion in new assets for the month, having seen USD2.8 billion in redemptions in September.
FUND PERFORMANCE
CTAs and trend-following hedge funds generated positive returns across a broad range of strategy types last month amid the global market rally – but the sector’s year-to-date performance remains mixed, new data from Société Générale shows.
RESEARCH
Over 70 per cent of hedge fund firms are positive about their business prospects for the coming year, according to AIMA’s new Hedge Fund Confidence Index (HFCI).
MANAGER INSIGHTS
Since launching in late 2018, BKCoin Capital, a New York-based digital asset-focused hedge fund firm, has built an impressive track record with its market neutral, arbitrage-based approach to cryptocurrency trading.
Established by founding principals Carlos Betancourt and Kevin Kang, the BKCoin Digital Asset Fund aims to capitalise on price inefficiency and volatility within cryptocurrencies using an algorithm-based trading model that fuses elements of statistical arbitrage and multi-strategy long/short investing.
Reflecting on the firm’s origins, Betancourt and Kang recall how investors were initially cautious on what they saw as the speculative, volatile nature of cryptocurrencies. BKCoin Capital sought to develop a
REGULATION
All eyes will be on the European Commission’s legal proposal pertaining to the AIFM Directive, which is expected to be published sometime in the first half of 2021, and could usher in an updated version – AIFMD II – a decade after it was first adopted.
FUND PERFORMANCE
The biggest hedge fund firms topped performance charts and drew the most investor capital over the course of last year, with 2020 proving “the year of outsourcing” for a range of middle office functions, as the industry demonstrated its value to investor portfolios, according to new analysis by Citco.
Citco Fund Services’ ‘2020 Hedge Fund Report: A Year In Review’ said the past 12 months had been a “huge year” for the industry, as managers went from “strength to relative strength”, withstanding surging trading volumes and spikes in volatility.
Citco, which provides asset servicing solutions to the global hedge fund
SPECIAL REPORT
By Elliot Refson, Director of Funds, Jersey Finance – As global markets continue to grapple with extreme uncertainty, with the ongoing fallout of Covid-19 and the impact of Brexit becoming a reality, Jersey’s funds industry finds itself in a strong position – well prepared to support investors and guide them through unchartered waters in the short-term and with the right ingredients to help them achieve their long-term ambitions too.
Jersey finished 2019 in bullish mood, with total fund assets rising to a new record high last year of more than GBP345 billion, with private equity in particular performing strongly, rising by almost a fifth.
SPECIAL REPORT
Interview with Simon Hopwood, Maples Group – The Covid-19 pandemic has caused a devastating impact on human life and health, and the global economy. As a consequence, the funds industry has faced unprecedented challenges, as it continues to navigate through unchartered waters.
Despite this, the Jersey funds industry has remained resilient with net assets under administration up 5.7 per cent(1) year on year standing at GBP361.7 billion(2) with alternative investment funds representing 87 per cent(3). Noticeably, private equity was up 19 per cent year on year(4) and managers using Jersey to market funds into the EU increased by 9 per cent
SPECIAL REPORT
By A Paris – Jersey is capitalising on its future position outside of the EU to attract US fund managers to its shores. This is despite the potential uncertainty driven by the looming end of the Brexit transition period and the global pandemic.
“As the largest law firm in Jersey with the busiest investment funds practice, we have experienced a sharp increase in US managers seeking access to European Union or European Economic Area capital through the use of Jersey vehicles.
“This trend is also evidenced by assets under management for funds incorporated in Jersey with US managers or promoters having increased
HOT OFF THE PRESS
Key considerations for hedge fund succession planning – Part II: Leadership transition involves a maze of complexity
HOT OFF THE PRESS
Key considerations for hedge fund succession planning – Part II: Leadership transition involves a maze of complexity