After several years as the top choice for many hedge fund investors, multi-strategy, multi-manager firms including Schonfeld Strategic Advisors, Balyasny Asset Management, and ExodusPoint Capital Management, are trailing the returns of other types of fund, according to a report by Bloomberg.
The report cites the PivotalPath Multi-Strategy Index – which includes a broad array of multi-strategy firms – as showing that multi-strats have posted average annualised returns of 7.4% since January 2019. This year though, the index is up an estimated 3.9% to the end of August.
And as PivotalPath's Head of Hedge Fund Research Jon Caplis points out, that performance looks even weaker considering Treasury bills can yield as much as 5.5%.
“When the risk-free rate is zero, a 7.4% return is great,” he said. “When the risk-free rate is 5.5%, it creates a lot more scepticism around the multi-strats – especially given the risks embedded in the strategy.”
Lynx Asset Management selects xyt for global equities liquidity analytics
Lynx Asset Management has selected market data analytics provider xyt to deliver independent trading volume and liquidity analysis across…
More
Brazil election rally boosts hedge funds
Brazilian hedge fund managers who correctly anticipated a strong first-round performance by right-wing presidential candidate Flávio…
More
Tiger Global set for $5bn paper gain from early OpenAI investment
Tiger Global Management is poised to generate an estimated $5bn in paper gains from its early investment in OpenAI, as the artificial…
More