Liquid Alternatives News

Hedge funds have ramped up bearish bets on US stocks at the fastest pace since 2020, reinforcing expectations of further market declines, according to a report by Reuters citing a client note from the prime brokerage division at Goldman Sachs.

Retail traders across Europe are engaging in a coordinated challenge to hedge funds – including Marshall Wace and Millennium – holding short positions in a handful of European stocks in a tussle reminiscent of the 2021 GameStop saga in the US, according to a report by the Financial Times.

Hedge funds, including Brevan Howard, Capula and Millennium, have upped their leveraged bets on UK government bonds, amplifying concerns over potential instability in the gilts market, a key benchmark for UK borrowing costs, according to a report by Reuters.

Citadel’s flagship Wellington hedge fund has trimmed its losses following a turbulent start to March, recovering from a 2% drawdown to less than 1% down year-to-date, driven largely by a recovery in US equities, according to a report by Reuters.

Hedge fund analysis specialist HFR has launched an expanded strategy classification system for hedge funds and alternative investment products focused on the cryptocurrency and blockchain space, with the introduction of 11 specialised sub-strategies.

Citadel, the multi-strategy hedge fund major led by Ken Griffin, has made one of its largest investments in the US natural gas market, agreeing to acquire assets from Paloma Natural Gas in a deal valued at approximately $1bn, according to a report by Bloomberg.

Hedge fund performance dipped last month with a weighted average return of -0.3% after a strong start to the year, with several strategy types – including commodity and equity strategies – experiencing a negative month, according to the latest data from asset servicer Citco.

UBS Group AG is closing its outsourced trading desk, one of the largest such offerings on Wall Street, as it refocuses its global markets strategy. The bank has begun informing clients of the decision, giving them three months to find an alternative provider, according to a report by Bloomberg.

Global hedge funds are regaining their appetite for US equities, cautiously adding exposure after a significant selloff in Wall Street’s major indexes, according to a report by Reuters citing a client note from Goldman Sachs.

Hedge fund short sellers have amassed a potential $16.2bn in profits as Tesla’s stock price has plummeted by 50% over the past three months, according to a report by the Financial Times citing data released by S3 Partners.

Newly revealed court documents indicate that FTX secretly liquidated $1.53bn worth of Three Arrows Capital (3AC) assets just two weeks before the crypto hedge fund’s 2022 collapse – challenging previous narratives that fund’s failure was market-driven, according to a report by CoinTelegraph.

Asset managers are ramping up bullish euro positions to a five-month high, while hedge funds are scaling back short bets, reflecting a significant shift in sentiment toward the European currency, according to a report by Bloomberg.

The total number of financial firms registered at the end of 2024 was 6920, up 25% on 2023. The data also showed a 10% increase to more than 45,000 in the number of people employed in financial services in Dubai.

Asia-focused hedge funds have fared better than their US counterparts during the recent market downturn, benefiting from a relative outperformance in Chinese equities as global investors shift capital into the region, according to a report by Reuters.