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Brummer & Partners, a Stockholm-based multi-strategy hedge fund firm, continued to generate positive performance as markets moved into the second half of the year, notching up gains across its trend-following, equity, credit and relative value strategies in July.
The Brummer Multi-Strategy multi-manager fund – which invests in a range of single-strategy hedge funds – gained 1.1 per cent in its SEK share class, and 1.2 per cent in its USD class, during July. Year-to-date, the fund has now advanced 3.8 per cent.
The Brummer Multi-Strategy 2xL (BMS 2xL) was up 2.2 per cent in both SEK and USD classes in
RESULTS
GAM Systematic, the Cambridge-based quantitative investment management unit of Swiss-headquartered global asset manager GAM, saw its assets tumble in the first half of 2020 as investors withdrew CHF900 million (USD981.3 million).
SHORT SELLING
Hedge fund short sellers took a hefty beating in what proved to be a bruising July, losing some USD6 billion across a range of strong-performing technology stocks, including more than USD4 billion from Tesla shorts alone.
New data from Ortex Analytics, a London-based equities research and analytics outfit, indicates hedge funds who went short on Amazon, Apple, Alphabet, and AMD along with Tesla suffered large losses as their bearish bets turned sour amid the stock market’s impressive Q2 rally.
But Peter Hillerberg, Ortex’s co-founder, believes the post-Covid market landscape of higher share prices and elevated volatility may again offer short
FUND LAUNCHES
Pictet Asset Management, the investment management arm of the Geneva-headquartered wealth management giant Pictet Group, has unveiled a new market neutral global equity hedge fund which trades liquid US and European stocks, with a low correlation to broader equity markets.
BONDS
Alberto Gallo, head of macro strategies at multi-strategy credit and equities hedge fund Algebris Investments, has compared investors in government bonds to “boiling frogs” who risk seeing their returns “wiped out” from future inflation rises.
As government bonds increasingly offer “return-free risk”, investors should look to alternatives, said Gallo, who is also portfolio manager of Algebris’ Global Credit Opportunities Fund.
Speaking on a recent Algebris Investments’ podcast, he noted that of the EUR70 trillion of sovereign and corporate debt in the world, just one-tenth yields more than 3 per cent.
In contrast, he pointed to a mix of credit, particularly
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OUTLOOK
The immediate outlook for hedge funds is “very bright”, with elevated volatility at an “optimal” level for macro and relative value strategies in particular, JP Morgan Asset Management’s alternatives team said this week.
Jamie Kramer, managing director and head of the Alternatives Solutions Group at JP Morgan Asset Management, said many hedge funds were able to insulate investors’ portfolios during the Q1 market shock before taking advantage of rising markets during Q2’s rally.
That showing is now piquing investors’ interest, following a sustained period of allocator aversion in recent years.
“Facing a decade of headwinds with low interest rates, low
MANAGER INSIGHTS
Established in 2004, HITE Hedge Asset Management is an alpha-focused energy specialist hedge fund firm which trades a range of energy-related securities throughout the entire carbon value chain.
UCITS FUNDS
R G Niederhoffer Capital Management, the New York-based quantitative trading advisor that employs a short-term contrarian investment strategy, has launched an alternative UCITS version of its flagship fund on Kepler Partners’ KLS UCITS platform. Kepler Liquid Strategies was established in 2016 and now has seven sub-funds with a combined AUM north of USD900 million.
The KLS Niederhoffer Smart Alpha UCITS Fund launched on 14 July 2020 and currently has USD47 million in AUM. The regulated vehicle will mirror the US firm’s short-term quantitative managed futures strategy, which has performed particularly well in recent market volatility.
The R G Niederhoffer flagship Diversified
RESULTS
Man Group has seen its funds under management tumble 8 per cent this year, as investment performance took a hit and investor redemptions spiked during the coronavirus crisis – but CEO Luke Ellis says the London-headquartered publicly-traded hedge fund group remains well-positioned despite 2020’s ongoing challenges.
