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MARKETS
The team behind the Lyxor Chenavari UCITS fund is repositioning the strategy for upcoming alpha-generating opportunities arising from the “choppy waters” of the forthcoming US election and Brexit.
CREDIT
With the ripple effect of Covid-19 still being felt in the global economy, investment opportunities in high yield credit, and in particular distressed credit, have been numerous as investors seek out higher yield, at a commensurate higher risk.
BONDS
Sector- and credit-specific bond selection will become increasingly important for investors amid a surging wave of new issuance, as companies look to raise more money to combat the coronavirus fall-out, according to managers at London-listed global hedge fund giant Man Group, who suggested government bonds could prove “an attractive alternative.”
Corporate bond issuance has far outweighed the traditional muted summer volumes lately, with US gross investment grade corporate bond issuance reaching USD440 billion between June and August – some 80 per cent higher than the USD240 billion 10-year average.
In a commentary on Tuesday morning (22 Sep), Man GLG –
FUND PERFORMANCE
The Westbeck Volta Fund, a global long/short equity strategy launched last year by London-based energy specialist hedge fund Westbeck Capital to trade the emerging battery revolution, has advanced more than 18 per cent so far in 2020.
SHORT-SELLING
Hedge fund short sellers are circling Nikola Corporation, the electric vehicle and component manufacturer at the centre of fraud allegations, with the Nasdaq-listed firm’s share price tipped to tumble this week following executive chairman Trevor Milton’s sudden resignation on Sunday night (20 September).
HEDGEWEEK LIVE EUROPE
The number of hedge fund launches compared with closures is “heavily skewed the wrong way”, says James Orme-Smith, CEO of Sandbar Asset Management, but he indicated that emerging managers can still overcome the sizeable barriers to entry.
“For anyone to start their own hedge fund, capital has become the oxygen more than anything else, and has become even more important than it ever was,” Orme-Smith said during the concluding panel of this year’s Hedgeweek LIVE Europe summit.
The session – which explored the fundraising outlook for 2021 – did not shy away from the huge challenges that loom over emerging
FUND LAUNCH
Hickory Lane Capital Management, a New York-based fundamental equities-focused investment manager, is tapping into opportunities across the TMT, industrials and consumer sectors with a new long/short equity strategy, which has launched with USD100 million in assets anchored by asset management seeder Investcorp-Tages.
Established in July this year by former Brahman Capital managing director and partner Joshua Pearl, Hickory Lane trades technology, media, telecommunications, industrials and consumer stocks on a long and short basis using a mix of long-term fundamental stock selection and top-down sector analyses.
The fund invests in stocks from a balance sheet perspective, with the investment portfolio taking
MANAGER INSIGHTS
The frantic hunt for an effective vaccine against coronavirus could leave some pharmaceutical companies highly exposed in a fiercely competitive race – and UK hedge fund Argonaut Capital is weighing in with several key bets against the sector.
CORONAVIRUS
SEI’s latest middle office whitepaper, “Remote Working, Covid-19 and Middle Office Outsourcing,” explores some of the operations challenges and opportunities caused by Covid-19 lockdowns, woprkplace interruptions and the ‘new normal’.
SHORT-SELLING
BlueBay cautious on Brexit deal compromise after UK short position pays off
SHORT-SELLING
BlueBay cautious on Brexit deal compromise after UK short position pays off