Hedge Funds

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.

Top Story

Alternative Investments/ESG: On The Eve Of COP26, Hedge Funds Ambivalent On ESG (Survey)

October 28, 2021

The results of a poll of hedge fund managers conducted by Hedge Fund Research showed that 53% of them (687 managers) incorporated ESG factors and sustainability metrics into their investment processes. However, 47% (609 managers) said they did not do so. The results are significant, coming as they do ahead of the 2021 UN Climate Change Conference (COP26) in Glasgow this weekend.

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More Stories on Hedge Funds

Don Steinbrugge: Low Rates to Push Pensions into Hedge Funds

January 7, 2020

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%)

January 7, 2020

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.”

Billionaire Bill Ackman

Pershing Square Capital Finishes 2019 Up 58.1%

January 6, 2020

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

January 6, 2020

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

January 3, 2020

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

January 2, 2020

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

January 2, 2020

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

January 2, 2020

Each morning, we take a quick dive into the major stories shaping the universe of alternative investments. Please signup for the daily letter and send it along to others seeking insight and education in the alternatives industry.

Hedge Fund Greenlight Finishes 2019 Up 13.8%

January 2, 2020

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

January 1, 2020

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…

Who is Tom Steyer

Former Hedge Fund Manager, Coal Investor Seeks Democratic Nomination

December 31, 2019

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

December 31, 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

December 30, 2019

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

December 30, 2019

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

December 30, 2019

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

December 23, 2019

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

December 23, 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

December 23, 2019

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.

New Preqin Report

Hedge Funds: November 2019 Saw Good Gains, says Preqin

December 20, 2019

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.

Hedge Funds: ValueAct Capital Gets Access to Confidential Citi Information for Another Two Years

December 20, 2019

ValueAct Capital Gets Access to Confidential Citi Information for Another Two Years. In return, ValueAct will support Citi’s board and management.
ValueAct Capital, one of the most followed activist hedge funds in the industry, first engaged with Citi in early 2018. Back then, ValueAct Capital acquired a stake in Citi, which is currently 1.3%. In January 2019, Citi and ValueAct entered an Information Sharing and Engagement Agreement valid through December 2019. This agreement has been revalidated for another two years.

Melvin: Hedge Fund Tiger Cubs Still Bullish on Chewy, But Why?

December 20, 2019

Is Chewy a good stock to buy? Not according to David Einhorn. In his 2nd quarter shareholder letter, the Greenlight Capital manager talked disparagingly about Chewy (CHWY), the online pet products company.

Darden Paper Shows Weak Hedge Fund Performance Post Financial Crisis

December 17, 2019

Hedge fund performance hasn’t lived up to the hype over the last ten years. This, according to the Executive Director of the Richard A. Mayo Center for Asset Management, University of Virginia Darden School of Business.

Hedge Funds: Why Some Singapore Hedge Funds are Hitting It Out Of The Park

December 16, 2019

Some of 2019’s best performing hedge funds are based out of Singapore.
Chong Chin Eai’s Vanda Global Fund is up over 300% this year. He started his hedge fund in Singapore with $24 million from friends and family but now runs $222 million. Annualized returns are 39%, though volatility is a stomach-churning 72%.
What’s interesting is that you couldn’t get a leaner hedge fund than Vanda.

In Focus: The Meteoric Rise of Ken Griffin’s Citadel Securities

December 13, 2019

Kenneth Griffin’s wealth is usually identified with his hedge fund. The flagship Wellington fund is up 16.7% this year through November. According to a Bloomberg story, Griffin made $ 870 million from Citadel LP, his hedge fund operations, in 2018. This is not an inconsequential sum by any standards.
What is not so well known, however, is the profitability of Citadel Securities, Griffin’s market-making business. This firm earned $5.7 billion in gross revenue in 2018, and EBITDA of $2.2 billion. Griffin is said to own 75% or more of both businesses.