Hedge Funds
With global hedge fund assets at roughly $3.45 trillion (and growing by double-digit percentages each year), money managers have a greater influence on public and private markets than ever before. DailyAlts covers every element of the hedge fund industry – from changing performance structures to manager strategies, from regulatory oversight to activist holdings, and from new fund launches to the liquidation of underperformers. This channel is your one-stop-shop for daily news and insights for the influential and topical hedge fund space.
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European investors, both retail and institutional, are showing a growing interest in hedge funds and alternative investment options, as indicated by recent findings from Cerulli Associates. In the UK, Italy, and Switzerland, there’s a notable preference for semi-liquid funds for private market investments, with 50% of UK wealth managers favoring this approach.
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More Stories on Hedge Funds
Hedge Fund PointState Capital Blocks Investors from Withdrawing Cash in Full
PointState Capital has moved to stop investors from pulling all of their capital in full. According to an investor letter seen by Bloomberg, the company will only allow recent redemption requests to obtain 88% back in cash. The remaining 12% will be distributed as portfolio shares for new vehicles that have “somewhat limited liquidity.”
The DailyAlts Playbook – “Clown Airplanes”, Russian and Chinese-focused funds, AQR staff cuts, and Brexit Beginnings – January 10, 2020
Today, the DailyAlts Playbook talks “Clown Airplanes”, Russian and Chinese-focused funds, AQR staff cuts, Brexit Beginnings, and an offer for our new readers.
Hedge Funds: AQR Capital is Cutting Staff… “It’s Carnage”
AQR Capital has $186 billion under management. Its $2.1 billion Style Premia Alternative Fund lost 8.2% in 2019. And now, the company is cutting its staff for the second straight year. Bloomberg reports that the firm will cut between 5% to 10% of its staff after outflows hit the company again this year.
Hedge Funds: In 2019, More Hedge Funds Were Shuttered Than Launched
In 2019, More Hedge Funds Were Shuttered Than Launched. 2019 was the fifth year on the trot that fund closures exceeded openings.
According to data from Hedge Fund Research, more than 4,000 hedge funds have closed shop over the past five years. The $3.2 trillion hedge fund industry is, as a result, down to less than 9,000 funds, says Chief Investment Officer.
Hedge Funds: Neil Woodford and Craig Newman Did Just Fine Before Woodford Collapse
Neil Woodford and his CEO Craig Newman earned 9 million and 4.8 million pounds in dividends in the year leading up to the collapse of Woodford Investment Management.
Don Steinbrugge: Low Rates to Push Pensions into Hedge Funds
Don Steinbrugge of Agecroft Partners released his annual list of hedge fund trends and predictions for 2020. He covers a few common bases: Hedge fund assets will set a new record, a reduction in expected returns, and how long-short specialty funds will see a boost to AUM.
Hedge Funds: The 2020 Top Picks of Andrew Left’s Citron Capital (First Year Gain 43.3%)
Famed short-seller Andrew Left’s Citron Capital published its Annual Investor Letter for 2019 on Monday.
“In 2019, our first full year of operation, Citron Capital, LP generated a gross return of 56.4% and net return of 43.3%,” wrote Left. “The Fund’s average exposure during 2019 was 75.8% long and 80.3% short.”
Pershing Square Capital Finishes 2019 Up 58.1%
Pershing Square 2019 performance came in at 58.1%. The huge windfall comes after four straight years of losses. That return was also double the return of the S&P 500. In a banner year for passive investors, Ackman showed that activist investing can work with the right formula.
Hedge Fund Marshall Wace is Shorting Denmark’s Largest Lender
Marshall Wace has taken a short position against Danske Bank. The Danish FSA said that the firm has a short position that reaches the threshold of 0.5% of issued shares.
MIG Capital Pushes Groupon for a Board Seat
MIG Capital is pushing Groupon to push its CEO Richard Merage on the shopping-deal provider’s board of directors. The activist fund with $1 billion in AUM owns 5% of Groupon stock. It wants to push Merage on the docket for a vote Groupon’s 2020 annual meeting.
Hedge Fund Horseman Global Fund Records 35% Loss in 2019
The Horseman Global Fund saw a 35% decline in 2019 as aggressive bets against the market failed to deliver. The fund hiked its net short position to a record 111% of gross assets in October. However, the S&P 500’s 31.5% surge in 2019 pummeled the fund’s positions.
Hedge Funds: Hedge Funds Rue 2019
The blistering run-up by the S&P500 left hedge funds in the dust.
Hedge funds really are in the dock. Can they really make money in all market conditions? Their stark underperformance compared to the S&P500 during 2019 is hard to live down.
The DailyAlts Playbook – January 2, 2020
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Hedge Fund Greenlight Finishes 2019 Up 13.8%
Hedge fund Greenlight Capital finished 2019 up 13.8% after a small dip in December. The iconic value-oriented fund saw a 0.3% decline last month to finish off the year, according to Bloomberg. As we reported last month, the fund also saw a 1.8% decline in November.
Hedge Funds: Korea’s Lime Asset Management in Fresh Trouble With Regulators
Korea’s largest hedge fund is under probe for involvement in an alleged US Ponzi scheme Lime Asset Management, the large Korean hedge fund, is accused of continuing to market a trade finance fund when it knew the investments could land in trouble. Lime had raised client funds amounting to 243.6 billion won and a loan…
Former Hedge Fund Manager, Coal Investor Seeks Democratic Nomination
Tom Steyer used to run a hedge fund. Now, he wants to be the President of the United States. His campaign strategy, however, is quite unprecedented. Both Steyer and Michael Bloomberg are buying up television advertising space at a breakneck pace.
EY: Private Equity Firms Really Loved Germany in 2019
Private equity investment in Germany topped out at about 32 billion euros, according to EY. That figure represents a year-over-year increase of about 80%, the firm said this week. Private equity investment in Europe’s largest economy hit 17.9 billion euros in 2018.
Hedge Funds: Investors Looking to Bail? The SS&C GlobeOp Forward Redemption Indicator is at a 12-Month High
The SS&C GlobeOp Forward Redemption Indicator for December is up marginally from last month.
Simply put, the SS&C GlobeOp Forward Redemption Indicator shows how much investors are looking to bail from their hedge fund investments. For December 2019, the indicator read 4.95%, up from 4.81% in November.
The indicator represents the sum of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp on the SS&C GlobeOp platform, divided by the Assets under Administration (AuA) at the beginning of the month for SS&C GlobeOp fund administration clients on the SS&C GlobeOp platform.
Hedge Funds: Josh Samuelson to Retire from PointState Capital
Josh Samuelson is departing PointState Capital, the firm he co-founded. According to a letter from co-founder Zach Schrieber, Samuelson “has decided to retire from investment management.” The manager plans to stay at the hedge fund for “several months” while leadership changes.
Hedge Funds Record Best Year Since 2013, But Departures Loom
Hedge fund returns in 2019 averaged 8.5% but fell well short of the broader market rally. Heading into Monday, the S&P 500 has gained 29.1%. HFR says that the firm reached 8.5%, a figure that was even well short of the U.S. Bond Market’s gain of 14.5%.
Hedge Fund Marcato Capital to Shut Down, Return Capital to Investors
Marcato Capital Partners will showdown after two years of lackluster returns. Multiple media outlets reported the developments on Sunday. According to such reports, Marcato founder and PM Richard McGuire started telling his investors of plans to shut the fund last week. Given that the portfolio is currently holding a lot of cash, McGuire plans to return the money quickly, the report indicates. The firm has faced a series of redemption requests over the last few months.
Former Hedge Fund BlueCrest Capital Now Sitting on a 50% Gain for 2019
BlueCrest Capital has earned 50% gains since the start of the year. This is a remarkably solid return after the company returned outside investor capital four years ago. The Financial Times says that the firm has capitalized on emerging-market bonds and trading interest rates. A 50% return through November is well ahead of the 9% earned by by the average hedge fund in 2019. Over the first 11 months, hedge funds are averaging returns of 9%, according to HFR. The S&P 500, meanwhile, has gained 28%.
Aberdeen Standard to Manage LF Woodford Income Focus Fund
Standard Life Investments will now manage the LF Woodford Income Focus fund, according to Link Fund Solutions. The arm of Aberdeen Standard Investments will replace Neil Woodford, whose flagship fund collapsed in October. Regulators suspended the fund that month thanks to ongoing challenges around its liquidity. ASI will take over the $351 million fund on December 31. Link said in a statement last week that it will reopen the fund in February 2020.
Hedge Funds: November 2019 Saw Good Gains, says Preqin
A rally in the global markets pushed November hedge fund returns higher.
The Preqin All-Strategies Hedge Funds benchmark gained +1.29% in November. That built on a +0.88% return in October and +0.4% in September. Hedge funds got a tailwind from the global rally in equities in November.