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FUND PERFORMANCE
Hedge funds are storming into the final weeks of 2020, having notched up some of their biggest gains in decades on the back of the US presidential result and positive developments in the search for a coronavirus vaccine, with equity, event driven and cryptocurrency strategies all riding high last month.
Hedge Fund Research’s main Fund Weighted Composite Index grew 6.24 per cent last month, its best monthly return since December 1999, and its second biggest monthly rise since the index launched 30 years ago.
Since the start of 2020, the index – a global equal-weighted measure of more than 1,400
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This is the final part in a series of four articles from the Waystone Client Solutions Team, bringing you a unique perspective on the challenges and opportunities presented by the shifting European regulatory landscape. Last week, David Morrissey offered his unique personal perspective on the evolution of the third party management company sector. This week, James Woodbridge, Associate Director in the firm’s Cayman office, and part of the Fund Governance Team, provides an update us on the history of SPACs, how they have evolved over the years, and their positioning for the future.
SHORT-SELLING
Hedge funds betting against FTSE 100 companies suffered losses of almost USD1.5 billion last month, as bearish equity positions were struck down amid November’s strong stock market rally.
OUTLOOK
Global macro hedge funds from across the emerging market, systematic and discretionary spectrum may be well-placed to capitalise on prevailing equity valuations amid economic “normalisation”, Lyxor Asset Management strategists said this week.
While discretionary global macro funds offer a tactical bias, which appears relevant “at the trough of the business cycle”, emerging market-focused macro managers benefit from stronger credit profiles of energy and metal exporters amid rising commodity prices.
Risk assets have been setting new records in the US recently, Lyxor said in a note this week, with the S&P500 now up 13 per cent since the end of October,
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The ever-rising demand for ESG has not only been driving the need for standards and regulations, but also the need for consistency on ESG ratings.
BREXIT
London-based hedge funds are warning of renewed market uncertainty, a less bullish stance on the pound and “extreme volatility” in the coming days, after EU Commission president Ursula von der Leyen and UK prime minister Boris Johnson agreed to further extend Brexit negotiations – with the risk of an “accidental” No Deal exit still remaining live.
SPECIAL REPORT
The alternatives and offshore business is gathering momentum in Tokyo as industry players witness growing demand and as government initiatives begin to bear fruit. This trend has led to changing technology needs as managers seek to accommodate global investors and adapt their infrastructure.
TECHNOLOGY
The world has witnessed an unprecedented explosion of data over the last few years. Most of us will be familiar with the term Terabyte, which represents 1012 or 1 trillion bytes of data. But such is the data-drenched world in which we live today that Caltech estimates 463 Exabytes of data will be created, every day, by 2025. One Exabyte is 1018, equivalent to one quintillion bytes!
ESG
Morgan Stanley Investment Management is rolling out a new ESG-focused fixed income fund, which aims to tap into sustainability themes by trading a range of ‘best ideas’ credit opportunities across the capital structure in developed and emerging markets.
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Managers should be looking to shore up their internal processes and security, focusing on improved end-point protection and appropriate training for staff to recognise anomalies. This is critical as cybersecurity develops further to keep ahead of the hackers.
