Liquid Alternatives News

Hedge funds are retooling one of last year’s most popular options strategies – index dispersion trades – as market turbulence and macroeconomic uncertainty reshape the volatility landscape, according to a report by Bloomberg.

Bill Ackman is taking a major step toward transforming his Pershing Square Capital Management hedge fund firm into a diversified holding company by upping his stake in real estate developer Howard Hughes Holdings (HHH) to 46.9% with an additional $900m investment in the business, according to a report by Reuters.

David Einhorn’s Greenlight Capital posted a 3.4% gain in April, capitalising on market volatility to extend its year-to-date performance to 11.9% and placing the fund among the top-performing long-short equity managers so far in 2025, according to a report by Institutional Investor.

Heightened market volatility following the Trump administration’s tariff escalation earlier this month triggered a sharp rise in derivatives margin calls, placing acute liquidity strain on hedge funds and other leveraged investors, according to a report by Reuters.

Hedge funds are broadly pulling back from high-conviction trades across asset classes — with one notable exception – a growing appetite for shorting US equities, according to a report by Bloomberg citing data from hedge fund replication firm Unlimited.

Despite a turbulent April marked by geopolitical uncertainty and shifting trade policy, some of the world’s largest multi-strategy hedge funds emerged with positive returns, with ExodusPoint leading the way with a 2.8% gain for the month, according to a report by Business Insider.

Hedge funds offloaded European equities at the fastest pace in a decade during March and April, driven by escalating trade tensions and a strengthening euro, according to a a report by Reuters citing a recent note from Goldman Sachs.

Asia-focused hedge funds have cautiously re-entered markets following a sharp retreat sparked by the Trump administration’s imposition of sweeping tariffs earlier this month, according to a report by Reuters citing a client note from Morgan Stanley’s prime brokerage unit.

Hedge funds recorded their tenth consecutive quarter of positive returns in Q1 2025, shrugging off volatility sparked by mounting global trade tensions to record a weighted average return of 2.8%, according to new data from Citco.

Michael Fine, a credit-focused Portfolio Manager at Brevan Howard Asset Management, has exited the firm in recent weeks, according to a report by Bloomberg citing unnamed people familiar with the matter, as the macro hedge fund scales back risk amid heightened market volatility.

Daniel Loeb’s hedge fund, Third Point, is building a position in consumer healthcare company Kenvue, according to a report by the Financial Times citing sources familiar with the matter, adding fresh momentum to investor calls for strategic changes at the $44bn firm.