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SHORT-SELLING
Hedge funds have lost almost USD560 million after several hefty short bets on a range of FTSE 100 stocks turned sour as equity markets yielded solid gains.
New data from London-based equity research firm Ortex Analytics shows almost three-quarters of total short losses in August came from big wagers against just five names: Ocado Group, InterContinental Hotels, International Consolidated Airlines Group, BHP and Pearson.
Together, they accounted for a bruising GBP310 million loss out of a total hit of GBP420 million to hedge fund short sellers last month.
As UK equities gained ground towards the end of the summer, hedge
SPONSORED FEATURE
This is the second in a series of four articles from the DMS Client Solutions Team, bringing you a unique perspective on the challenges and opportunities presented by the shifting European regulatory landscape. In last week’s article Daniel Forbes explored Why Cross-Border Fund Domiciles are Transforming into Fund Management Hubs. This week Pádraic Durkan continues this theme by looking at the evolving landscape in Ireland for fund management…
SHORT-SELLING
Hedge fund short sellers look set to gain from bets against London-headquartered Capita after the embattled global outsourcing and professional services provider’s stock price slipped again following recent poor first half results.
Capita suffered a GBP28.5 million (USD38 million) loss during the first six months of 2020, and warned of a two-year cash flow squeeze as a result of the coronavirus crisis in its H1 statement last month. The outsourcer’s shares fell some 8 per cent to 28.7p following the announcement before recovering slightly.
Hedge funds have been ramping up bets against the company lately, whose shares again fell under
FUND LAUNCH
Somerset Capital Management, a global emerging markets specialist investment manager, has launched a new strategy which aims to capitalise on the growth potential among small and medium-sized ESG-friendly companies in emerging market countries.
FUND PERFORMANCE
Managed futures hedge fund strategies may be well-placed to withstand a continuing rise in bond yields, despite CTA performance being squeezed by the recent surge, Lyxor Asset Management strategists say.
MANAGER INSIGHTS
A new hedge fund launched last month by Union Bancaire Privée which trades on good and bad governance within Japanese companies has started positively – and portfolio manager Zuhair Khan (pictured) says the country’s patchy record on board oversight will continue to offer strong investment opportunities.
CYBERSECURITY
Firms can have a belts and braces approach to the security of the systems and tools they deploy, but staff training and communication can make or break their chances of success.
“We recommend overhauling policies and procedures, and implementing these via training which happens at induction and regular points thereafter,” advises George Ralph, managing director at RFA.
Cybersecurity has become a board level concern and many clients now prioritise it in their risk register. With SMCR reigniting its importance and responsibility, cybersecurity now also features heavily as a standard element in every ODD exercise. Essentially, if the investors are asking about
CYBERSECURITY
Artificial intelligence is enabling organisations to be more proactive in their approach to cyber threats. Work environments with greater levels of remote access could be deemed more vulnerable, but the element of automation in identifying and remediating potentially malicious behaviour provides a superior measure of security.
A key development in the realm of cybersecurity has been the creation of end-point detection and response or EDR.
John-Thomas Gaietto, executive director of Cybersecurity Services at Richey May & Co discusses this progress and the benefits it brings firms: “The general basis of the tool is that, unlike traditional malware software that requires
CYBERSECURITY
By A Paris – Hedge funds and alternative asset managers are responsible for over USD3 trillion in assets under management – many bright shiny diamonds for cyber criminals to pursue. Increased levels of remote access propelled by the Covid-19 pandemic are making these organisations even riper targets. So, in this environment, the cost of inaction or complacency around cybersecurity continues to mount.
According to IBM Security, the average cost of a breach within financial services is of USD5.85 million – this is well above the overall average of USD3.86 million per breach across all industries reviewed. Although the crisis has put many
METALS
Delbrook Capital, a Vancouver-based specialist metals-focused long/short equity hedge fund, has continued to capitalise on this summer’s soaring precious metal prices.
