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FUND PERFORMANCE
A spike in market volatility led CTAs and other managed futures hedge funds to hand back their initial early-year returns last month, as gains in commodities and bonds were outweighed by losses in currencies and equity indices.
Though two out of the three daily CTA benchmarks produced by Société Générale were in the black entering the final week of January, increasingly see-saw market patterns ultimately torpedoed the sector’s mid-month advance, SocGen said on Friday.
The main SocGen CTA Index, a daily performance benchmark comprising a select pool of 20 of the largest managed futures strategies, slumped to a 1.14 per
TRADING
The co-ordinated billion-dollar raid on hedge funds’ short positions in GameStop by amateur traders represents another risk management factor in a battalion of emerging challenges that now confront managers’ portfolios, industry participants say.
FUND PERFORMANCE
The sharp dispersion in hedge fund performance is having a more noticeable impact on where investors choose to allocate – and withdraw – their money this year.
New industry research shows that while allocators removed USD9.6 billion from hedge funds during September, they still pledged some USD8 billion to the industry throughout Q3 – the first time since Q1 2018 that hedge funds registered positive quarterly inflows.
And against a backdrop of huge performance dispersion, it is the best-performing managers and strategies which are now attracting the most new capital from allocators.
“The data is showing it over and over
AWARDS
In what has been a year of extreme turmoil and unprecedented challenges, the team at Hedgeweek is very pleased to announce the winners of the Hedgeweek US Awards 2020, compiled in conjunction with Bloomberg.
NEWS
Brevan Howard, the high-profile global macro hedge fund manager founded by Alan Howard, has rehired Cove Capital founder and CIO Louis Basger, who previously spent six years at Brevan in Geneva.
Before setting up his own Geneva-based manager, Basger was at Brevan Howard Asset Management between 2010 and 2016, initially as a trade analyst and later a portfolio manager for the firm’s main Brevan Howard Master Fund.
He was earlier an associate at Morgan Stanley between 2005 and 2010, working in the US bank’s fixed income sales and trading division in London.
Basger will start at Brevan Howard on 1
OUTLOOK
Man FRM is optimistic on what it describes as an “unusually large” spectrum of hedge fund strategies amid a growing medley of investment opportunities and themes arising from the fledgling economic recovery.
In its Q1 strategy outlook published on Thursday, Man Group’s funds-of-funds unit spelled out how a spring economic recovery, coupled with dovish central bank stances and ongoing fiscal support, will help sustain and extend the market rally, particularly in equities.
That, in turn, will likely strengthen the hand of a range of hedge fund strategies including credit, equity long/short, macro and relative value, during the first quarter.
Stronger
DIVERSITY
100 Women in Finance, the 20,000-member global industry association for hedge fund, alternatives and investment management professionals, will host the largest ever dedicated global gathering of female investment managers and asset allocators next month, aimed at facilitating capital introductions during its flagship Global FundWomen Week.
100WF will hold the virtual event between 9-13 November, replacing previous in-person regional conferences. It will connect some 200 of the world’s top allocators with more than 180 women founders and managers from across the alternative and traditional asset management industries.
As well as representation from North America and Europe, for the first time ever
SHORT-SELLING
Hedge funds have lost some USD325 million betting against FTSE 100 names over the past month, with retail investors driving shorted stocks higher as the GameStop effect reached UK shores.
FUND PERFORMANCE
Stockholm-based hedge fund manager Brummer & Partners saw its flagship multi-strategy fund dip slightly into negative territory last month.
The Brummer Multi-Strategy (BMS) vehicle slipped 0.8 per cent in its SEK class, and 0.9 per cent in the USD class, in January, while the twice-levered Brummer Multi-Strategy 2xL version of the fund lost 1.7 per cent in both SEK and USD tranches.
Brummer said on Wednesday that equities and bond yields ticked upwards in early January, buoyed by the prospect of further stimulus from the new Biden administration – but appetite soon soured in the second half of the month
OUTLOOK
Alpha-generating opportunities surge in Japan, as economic recovery and market reforms gather pace
OUTLOOK
Alpha-generating opportunities surge in Japan, as economic recovery and market reforms gather pace