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Hedge Funds update H1 Hedge funds have had a varied performance in the first half of 2024. While some multi-strategy and systematic funds, like Bridgewater Associates and Aspect Capital, posted impressive double-digit returns, others struggled to maintain gains. The HFR Global Hedge Fund index showed a modest 2.89% increase, reflecting the broad dispersion in returns. This article by Carolina Mandl and Nell Mackenzie provides a detailed look at the winners and losers in the hedge fund space so far this year. Read more here: https://lnkd.in/eKZV9u_g #hedgefunds #riskmanagement #cro #portfoliomanagement

An article from Bloomberg underscores the shifting dynamics within hedge fund management, as illustrated by the recent developments at ExodusPoint Capital Management, LP. Despite an auspicious debut that set records, the fund, helmed by Michael Gelband, has confronted a substantial exodus of capital for the second year running, amounting to a staggering $1 billion in 2023 alone. This continued withdrawal suggests a pronounced shift in investor sentiment, possibly swayed by the comparative allure of secure, high-yield treasuries and the underwhelming performance of high-fee hedge funds. ExodusPoint's response has been to revitalize its operations through strategic staffing, aiming to bolster its equities division and realign itself with the industry frontrunners. The scenario at ExodusPoint highlights a critical juncture for investors and fund managers alike, as they navigate the delicate balance between innovation and stability in an evolving market. The key to longevity, it seems, lies in adaptability and the readiness to reinvent strategy when traditional approaches falter. How do industry professionals perceive the shifts in hedge fund investments in light of such transitions? Are high-fee multi-strategy hedge funds still viable in the face of rising treasury yields and growing investor skepticism? Join the conversation and share your insights below! #HedgeFunds #InvestorSentiment #FinancialMarkets #AssetManagement #WealthManagement #ExodusPoint #StrategicInvesting #FINTRX https://lnkd.in/ddDi3-aQ

New Article: Forget Hedge Fund Strategy Labels – Here Are Three Groups that Matter: https://okt.to/M8Qfyx In our latest article, Toby Goodworth challenges traditional hedge fund strategy labels, claiming that they are not "particularly helpful" for investors seeking to build an "effective portfolio". #hedgefunds #diversification #onyourside

Hedge fund replication is getting mainstream with State Street Global Advisors announcing they are launching a hedge fund replication product shortly. While these sorts of products can be viewed as direct competitors to our work, the entire replication industry is still tiny in comparison to the 5tln AUM hedge fund industry suggesting there is *a lot* of room for everyone involved to gather assets leveraging these techniques. SSGA's entrance just further highlights how these products are getting increasing attention from the biggest asset managers. Why? Because clients don't want to have to keep paying 2&20 fees (or worse). https://lnkd.in/ewM9YKsv

A deep dive look at #hedgefunds allocating to, well, other hedge funds. With thoughts from Paloma, Boothbay and many others on this continuing trend that is both old and new. This story is part our hedge fund special report that you can access here: https://lnkd.in/emRgkviv https://lnkd.in/e35qvQ3p

While "Goldilocks and the three drivers of hedge fund returns" may not be on anybody's list of classic fairy tales, I'm excited to share this new paper written with my colleague Alex King, CFA. Alex and I look at 30 years of hedge fund data to put the disappointing hedge fund performance of the 2010s in context. We show how three key factors -- security-level dispersion, macro volatility, and interest rates -- can help explain that performance. And we argue that in today's environment, those headwinds could turn into tailwinds and support hedge fund returns just when investors may need additional sources of diversification. Happy reading!

This week’s Thought Leadership piece comes from Practus partner, Chris Hayes: Delivering Next-Level Hedge Fund Services Chris’s latest article dives into what to consider when forming a hedge fund and how our attorneys deliver flexible, modern solutions within today’s complex regulatory environment. He shares insights around key hedge fund services, including: -Comprehensive fund formation and structuring -Compliance strategies for evolving regulations -Tailored solutions for both emerging and established hedge funds -Seamless support across multiple jurisdictions Our team of experienced attorneys is ready to help your hedge fund achieve its goals with streamlined, cost-effective strategies. Read more: https://lnkd.in/eAyXnb3v #thepractusway #practuslaw #legalnews #legalinsights #hedgefunds #hedgefundservices #compliance #corporatelaw #fundformation #investmentlaw

Are you wondering what is driving your performance? Discover how a 'Tiger Cub' hedge fund, with $Billions under management, was seeking a platform to better manage factor exposures across its portfolio. With institutional allocators emphasizing sophisticated factor criteria, the fund needed a solution that could provide an in-depth view of the factors driving their portfolio performance. Find out how in this case study: #alphastocks #fundamentalinvesting #custombaskets #riskmanagement #riskanalysis #portfoliooptimization

NEW UNLIMITED BLOG - Long Time Allocators Remember When Fund Picking Worked, But It Is Possible Those Days Are In The Rearview We’ve written several pieces about hedge fund persistence and the potential benefits of hedge fund indexation over the last few years (Elusive Persistence). Our conclusion is random chance is approximately as effective as allocators’ at selecting a hedge fund portfolio. The research supports that allocators could generate a more attractive return by investing in an index of hedge funds than an actively managed portfolio, particularly if they can access those returns with lower fees. These conclusions were drawn based on rigorous analysis of the last decade of performance, but some folks who have allocated to hedge funds for a few decades remain skeptical about the conclusion. They remember a time when there was enough divergence between funds that selection based on attributes like historical returns or Sharpe ratio could result in an attractive portfolio return. And they are right - there are indications that during the golden age of the hedge fund industry picking worked for a targeted period, albeit relatively short. Unfortunately, that may be an artifact of the past, as the surge of new funds compressed performance dispersion. Read more: https://lnkd.in/eh7d7SmJ

Hedge Funds held gains Despite of Temporary Shift in the Yen Carry Trade as Market Neutral Continue to Out Perform Stock trading hedge funds relying on systematic algorithms to trade returned roughly 2% for the month to Aug. 30, JPMorgan said. The stock trading Eureka Fund of British hedge fund Marshall Wace, co-founded by Paul Marshall, finished down 0.46% for August but was still almost 11% higher since the start of the year, a source with knowledge of the matter told Reuters on condition of anonymity. The $68.4 billion hedge fund's Market Neutral Tops fund, meanwhile, returned 1.72% in August, contributing to a 18.53% year-to-date gain.