Intelligence
Latest
FUND LAUNCH
ThirdYear Capital, a Munich-based quantitative macro specialist, has paired up with Cologne-based fund initiator Agathon Capital to unveil a new systematic global macro hedge fund strategy which targets opportunities stemming from short-term economic data trends.
The ART Global Macro Fund uses near-term economic forecasts to identify trading opportunities in fundamental financial trends as well as turning points in capital markets.
The fund, which launched last month with EUR20 million (USD23.6 million) in seed capital, trades a range of liquid and exchange-traded instruments including equities, government bond, inflation and currency futures, and can use derivatives to build short positions.
ThirdYear’s absolute
TRADING
Outdated trading systems and clunky manual processes are hampering hedge funds’ efforts to swiftly execute trade orders to the market, resulting in an annual hit of some USD8 million – which could worsen in the event of renewed volatility later in the year.
New analysis by TradingScreen, a New York-based software-as-a-service trading technology provider, found that hedge funds face hold-ups when processing execution orders as a result of poor system integration and slow manual inputs needed to create, validate, execute and book trades.
By the time traders and portfolio managers have physically entered the information into their systems and sent
WEBINAR
Replay this webinar to learn how clients are taking advantage of Singapore’s new Variable Capital Company (VCC) legislation and the incentives on offer for launching or redomiciling funds. The recorded panel conversation features domain experts who deliver best practices, insights, and perspectives.
FUND PERFORMANCE
Paris-based systematic hedge fund Quantology Capital Management – which trades US equities using a quarterly earnings-based quant model – has generated positive returns from IT and internet positions, and now sees US markets firmly in “risk on” territory.
ACTIVIST FUNDS
Activist-focused managers comfortably outperformed other strategy types last month, as the hedge fund industry continues to recover from the Covid-19 turmoil with solid August gains and positive year-to-date returns, new eVestment data shows.
Activism-focused hedge funds rose 7.88 per cent in August. Known – and sometimes feared – for their often-combative approaches to investing, which include a range of tactics and methods to effect board level change and improve shareholder value, such funds have now made 3.25 per cent on average this year, eVestment said.
That number is still down sharply from their 17.46 per cent gain last year, which
SHORT-SELLING
A number of high-profile hedge funds are again ramping up bets against UK supermarket giant Sainsbury’s.
Third Point, along with AHL and GLG Partners, Man Group’s systematic and discretionary hedge fund units, have increased their short positions in the UK supermarket giant recently, according to regulatory disclosures made to the FCA since the start of September.
BlackRock Investment Management has also built a 2.65 per cent net short in the FTSE 100 company, while Citadel and Pelham Capital also maintain negative wagers against what is now regarded as the UK’s most shorted stock.
Sainsbury’s share price has fallen over the
FUND PERFORMANCE
Rhenman & Partners Asset Management, a Stockholm-based global healthcare-focused hedge fund firm, saw its flagship strategy rise in August thanks to a tentative recovery in the med-tech sector and signs of more M&A activity within healthcare stocks.
The Rhenman Healthcare Equity Long/Short Fund – which trades a range of small, medium and large pharmaceuticals, biotechnology, medical technology and service company names – added 4 per cent in its euro-denominated class in August. Its SEK share class meanwhile returned 3.75 per cent for the month, with the fund now up 3.5 per cent year-to-date.
Henrik Rhenman, CIO and founding partner, and
SHORT-SELLING
Hedge funds betting against Tesla have suffered their worst monthly hit yet, with negative wagers bringing a hefty USD9.5 billion of losses to short sellers in August – but recent turbulence in Elon Musk’s mega-cap electric carmaker this week may yet offer future hope for bearish investors.
Tesla – often dubbed the ‘world’s most shorted stock’ – accounted for most of the USD11 billion worth of losses posted by short sellers as a result of wayward bets against Nasdaq 100 firms last month.
New data from Ortex Analytics shows the USD9.5 billion Tesla hit suffered by hedge fund short sellers
MARKET INSIGHT REPORT
Covid-19 has created a series of dynamic opportunities for hedge funds, presenting managers with the opportunity to diversify into new markets and new asset classes to seek out fresh sources of alpha.
Hedge fund managers need to be able to strike while the iron is hot and have the confidence to scale up their businesses and maintain an AUM growth trajectory by diversifying into new asset classes.
In order to diversify, and capitalise on dislocation opportunities in areas like distressed credit or convertible bonds, managers need to ask themselves, ‘Does our current operational infrastructure allow us to trade new assets,
HOT OFF THE PRESS
Flexible working, virtual fundraising and recreating that ‘water cooler’ environment
HOT OFF THE PRESS
Flexible working, virtual fundraising and recreating that ‘water cooler’ environment