Each business day HedgeCo.Net keeps you informed with the top hedge fund industry news, opinion and insight from around the globe. From the latest hedge fund launches, to the impact of regulation, competition, and investor activism - we track the topics and people that make a difference to you.
Charity Times – Putting it into perspective, at January 1 2008 there was $9.7trn of hedge funds assets invested, at the end of 2008 it was $3trn, a massive loss in capital.
This year, hedge funds gained 2.41 per cent in March, according to the Barclay Hedge Fund Index compiled by BarclayHedge. The index is now up 0.82 per cent in 2009. ”After an eight per cent sell-off in early March, the S&P 500 Index bounced back to gain 17 per cent from 9 March to 31 March, its largest three-week rally since 1987” says Sol Waksman, founder and president of BarclayHedge. Overall, 15 of Barclay’s 18 hedge fund indices gained ground in March. Hedge funds took modest advantage of March’s upswings in the global equity and credit markets, according to Morningstar’s hedge fund performance summary for the first quarter of 2009.
Highbridge Capital Management, once the world’s biggest hedge fund, was a big winner, with $1bn of net inflows this year, including $225m from majority owner JPMorgan. It ended the quarter with $20bn under management.
West Palm Beach (HedgeCo.net) – Quantum Global Financial Corp. has launched the multi strategy New Renaissance Fund with over 37% return for its first 11 months ended May 29, 2009.
The fund uses a systematic approach that employs a new technology. These are dynamically self adapting forecasting models. The algorithms have been in development for 18 years, tested for 7 years in simulation, and finally put into practice 11 months ago resulting in a substantial positive performance gap.
QGF achieved their 37% return with average leverage ratio of 1.25. For the same period, the CSFB Managed Futures Index was down 2.37%, Barclay Multi Strategy Hedge Fund index was down 13.89% and the S&P 500 was down 37.67%.
The fund focuses on delivering absolute performance throughout the economic cycle, transparency, liquidity and partnerships with firms that demonstrate extraordinary ethical compliance and global sustainability.
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Am Law Litigation Daily – Remember how Linklaters’ representation of Barclays in a suit against Bear Stearns cost the firm its client relationship with JPMorgan Chase? It now looks like Linklaters sacrificed its JPMorgan work for nothing. Bloomberg is reporting that Barclays has dropped its Bear Stearns suit with prejudice.
In an amended complaint filed in June, Barclays blamed Bear Stearns and two since-indicted Bear hedge funds managers for causing Barclays to lose hundreds of millions of dollars it had invested in a Bear hedge fund with assets linked to subprime mortgages. (The fund imploded in 2007.) Barclay’s dismissal notice did not offer any explanation for why it was ending the suit. Linklaters partner Lawrence Byrne, whose name appears on the dismissal notice, did not immediately return our phone call.
The Bulletin – Hedge fund managers on average lost 18.7 percent of their clients’ money in 2008, for the worst performance since at least 1990, according to Hedge Fund Research Inc. Combine the losses with investor redemptions, and total hedge fund assets have been cut almost in half. TrimTabs Investment Research and Barclay Hedge Ltd. estimated funds held $1.1 trillion at the end of the year, down from $1.9 trillion a year earlier.
One rare bright spot: the resilience of global macro fund managers, who wager on currencies, equities, interest rates and commodities based on their fundamental analysis of world economic trends.
The Age – Hedge fund managers on average lost 18.7% of their clients’ money in 2008, for the worst performance since at least 1990, according to Hedge Fund Research Inc.
Combine the losses with investor redemptions, and total hedge fund assets have been cut almost in half. TrimTabs Investment Research and Barclay Hedge estimated funds held $US1.1 trillion ($1.7 trillion) at the end of the year, down from $US1.9 trillion a year earlier.
One rare bright spot: the resilience of global macro fund managers, who wager on currencies, equities, interest rates and commodities based on their fundamental analysis of world economic trends.
Reuters – Hedge funds are keeping borrowings and risk low and seeking sanctuary in safe-haven assets during the current market turbulence, but some are beginning to see opportunities to make attractive investments.
The events of the past few days — the collapse of Lehman Brothers, the $50 billion sale of Merrill Lynch to Bank of America and the $85 billion rescue of AIG — have hit funds’ returns and caused many to cut back their bets.
"Managers have been reining in leverage given the extreme volatility in the market. Sentiment is so bad, people are loath to make big bets," said Jack McDonald, chief executive of hedge fund service provider Conifer Securities.
Eclectica Asset Management, co-founded by high-profile hedge fund manager Hugh Hendry, told Reuters its hedge fund had 140 percent of net asset value invested in mid- and long-dated German bunds.
Reuters – Hedge funds are keeping borrowings and risk low and seeking sanctuary in safe-haven assets during the current market turbulence, but some are beginning to see opportunities to make attractive investments.
The events of the past few days — the collapse of Lehman Brothers, the $50 billion (28 billion pounds) sale of Merrill Lynch to Bank of America and the $85 billion rescue of AIG — have hit funds’ returns and caused many to cut back their bets.
"Managers have been reining in leverage given the extreme volatility in the market. Sentiment is so bad, people are loath to make big bets," said Jack McDonald, chief executive of hedge fund service provider Conifer Securities.
Eclectica Asset Management, co-founded by high-profile hedge fund manager Hugh Hendry, told Reuters its hedge fund had 140 percent of net asset value invested in mid- and long-dated German bunds.
The remainder of its exposure is to bond yield swaps and soft commodities.
