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PERFORMANCE
Larger hedge funds’ performance in 2020 remains “significantly” below industry averages, according to new industry stats, suggesting that bigger may not necessarily be better when it comes to managers recouping losses suffered earlier in the year.
The ten largest hedge funds reporting to eVestment remain some 4.61 per cent in the red year-to-date, despite posting a 1.31 per cent gain in July.
In contrast, hedge funds overall are now flat for the year, at 0.00 per cent, having registered a 3.43 per cent rise last month to successfully claw back losses suffered in H1.
“Size appears to be something of
SHORT SELLING
Hedge funds betting against Asos have seen their positions squeezed as the online fashion retailer’s share price surged further this week following upgraded profit forecasts.
NEWS
Rhenman & Partners Asset Management saw its global equity hedge fund tumble in July, as losses in energy and financials positions outweighed gains in information technology stocks.
The Rhenman Global Opportunities Fund – a long/short global equity hedge fund strategy which trades across sectors, with a focus on value-oriented companies – shed 3 per cent in its main SEK-denominated share class last month. Its euro share class meanwhile fell 1.64 per cent.
IT names generated positive contributions in July, with Ericsson and Qualcomm the best overall performers.
But monthly returns were ultimately hamstrung by losses in bets on Chevron and
THE COO PERSPECTIVE
From the historic stock market sell-off and volatility surge that wreaked havoc on investment portfolios during March to the continued working-from-home practices which have thrown up various operational obstacles spanning technology, cybersecurity and infrastructure, the coronavirus crisis has upended all corners of the hedge fund industry.
For hedge fund chief operating officers, the pandemic has brought its own unique set of challenges. Managers of all sizes and strategies implemented extensive business contingency plans for home working in order to continue operations. But as firms slowly begin to return to the office following more than four months of lockdown, the concept
PERFORMANCE
Hedge funds have stormed into the second half of the year, recording their second highest monthly return in almost 18 months, and their third biggest monthly return in a decade, with equities and macro-focused managers leading the way.
New data for July published by Hedge Fund Research shows widespread gains across an assortment of strategies.
HFRI president Kenneth Heinz pointed to surging gains in July across technology, activist, CTAs and volatility strategies, along with cryptocurrency funds. He said institutional investors are now looking to increase exposure to hedge funds in light of strong performance throughout this year’s volatility.
Overall, the
MANAGER INSIGHTS
A lax regulatory environment, the pervasive influence of passive funds (driven by index funds and ETFs), and a continued commitment among central banks to maintain low interest rates are creating a golden age for short sellers.
CORONAVIRUS
Rhenman & Partners Asset Management, a Stockholm-based hedge fund firm which invests in global healthcare stocks, is optimistic about a post-US election market bounce, and points to “intense activity” among vaccine developers working on a treatment for Covid-19.
The firm’s Rhenman Healthcare Equity Long/Short Fund – which trades a range of small, medium and large pharmaceuticals, biotechnology, medical technology and service company stocks – was down in July.
But Henrik Rhenman, founding partner and chief investment officer, believes the traditional uncertainty that typically looms over the healthcare sector ahead of every US presidential election will give way to a strong
CTA PERFORMANCE
Trend following hedge fund managers gained ground in July following a patchy first half of 2020, notching up their best monthly performance so far this year by capitalising on soaring gold prices and emerging trends against the US dollar.
GOLD
As gold prices reach fresh highs, more hedge fund investors could pile into the commodity – heralding fresh spikes of volatility in the assets, according to Christopher Cruden, manager of the currency and gold-focused CTA strategy Insch Kintore.
COMMENT
Toscafund’s Savvas Savouri confident of UK recovery despite deep recession
COMMENT
Toscafund’s Savvas Savouri confident of UK recovery despite deep recession