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ACTIVIST FUNDS
The first half of 2020 has proved tricky for activist hedge fund managers, as performance remained in the red and the number of companies targeted by activists fell to its lowest level in five years.
Activist strategies were hit hard earlier in the year by the coronavirus pandemic, but more recently performance has recovered, according to new eVestment data, with managers soaring almost 23 per cent during the second quarter of the year.
But despite recent the recent resurgence – which included a 4.71 per cent advance in June – activist hedge funds remain down 6.44 per cent for the
GUEST ARTICLE
By Xavier Parain (pictured), CEO, FundRock Management Company – The impact of Covid-19 has altered the mechanics of almost every profession, and the fund management is no different. Here are four things that we have learnt about the way that fund managers have mitigated systemic risk during the crisis and slowed the spread of market contagion.
ESG
BNP Paribas Asset Management has launched a long/short global equity hedge fund which will invest in companies grappling with looming environmental challenges, as interest in ESG (environmental, social and governance) themed hedge fund strategies continues to soar.
BNP’s new Environmental Absolute Return Thematic (EARTH) Fund will trade energy, materials, agriculture and industrials stocks in both developed and emerging markets with market caps of more than USD1 billion.
It will take long punts in innovative companies that are addressing an assortment of environmental challenges – such as carbon emissions, waste production, and food, water and energy concerns – and pair them
NEWS
The price of natural gas is predicted to surge amid stalling US production levels, says Russell Clark Investment Management, London-based global equities hedge fund.
Russell Clark’s contrarian long/short firm, which is well-known for its bearish calls in global stock markets, is betting on natural gas prices to spike as a result of tightening supply heading into the winter months.
Earlier this year, Clark suggested future rises in the cost of natural gas following the oil price crash could squeeze utilities’ profits – with US companies proving a lucrative short bet for hedge funds.
Now, the long-running firm – which was
NEWS
Graham Capital Management, the long-running US quant hedge fund manager, is launching its multi-asset diversified quant strategy, the Graham Quant Macro fund, on Lombard Odier’s PrivilEdge UCITS fund platform.
OIL
Westbeck Capital, a London-based oil-focused hedge fund, continues to generate stellar double-digit returns in 2020’s lively energy markets, and believes short-term mis-pricings in oil equities offers further buying opportunities ahead of a potential price recovery later this year.
The firm’s Westbeck Energy Opportunity Fund – managed by co-founders Will Smith, CEO and former partner and head of natural resources at Sir Michael Hintze’s multi-strategy hedge fund CQS, and CIO Jean-Louis Le Mee, ex-founding partner of BlueGold Capital – gained almost 9 per cent in June.
That rise was the fourth consecutive month of positive returns for the strategy, which has
MANAGER INSIGHTS
As manager of Cheyne Capital’s Thematic Long/Short Fund, Richard Woolf (pictured) brings what he describes as a “healthy dose of scepticism” to his portfolio management style and trading approach.
OUTLOOK
Pricing dislocations across a broad range of industries and geographies, coupled with an increasingly fragmented macroeconomic landscape stemming from divergent emergency central bank measures, will throw up a wealth of investment opportunities for macro, equity and credit hedge fund strategies in the second half of 2020, K2 Advisors, the global fund advisory unit of Franklin Templeton, has said.
The firm’s third quarter hedge fund strategy outlook pointed to potential economic tailwinds stemming from increased consumer spending post-lockdown, a weakening US dollar, and higher commodity prices.
“In this environment, one might expect the US yield curve to steepen, non-US equities to
NEWS
Lansdowne Partners, the long-running London-based hedge fund firm, is restructuring its flagship Developed Markets Fund to focus solely on long-only investments, and will no longer employ short-selling in the strategy, in a major shift in focus for the high-profile manager.
Peter Davies, who co-manages the Lansdowne Developed Markets Fund’s portfolio alongside Jonathon Regis, believes the long book opportunities going forward are more appealing than the potential for shorts, and is closing the hedge fund part of the strategy.
Lansdowne, which was established in 1998 by Sir Paul Ruddock alongside Steven Heinz, reportedly manages around USD9.8 billion today across various funds,
NEWS
Toscafund economist Savouri’s confidence “supercharged” by Sunak’s UK coronavirus finance plan
NEWS
Toscafund economist Savouri’s confidence “supercharged” by Sunak’s UK coronavirus finance plan