Liquid Alternatives News

Hedge funds have poured billions into bets against the US stock market, anticipating a potential crash under Donald Trump’s presidency, according to a report by the Telegraph citing data from Goldman Sachs showing a sharp rise in short positions in US stocks.

Hedge funds and other institutional investors poured into euro zone government debt sales in January, capitalising on higher bond yields and favourable pricing dynamics to drive record demand, according to a report by Reuters.

Hedge fund giant Elliott Management has sounded the alarm on what it describes as a speculative frenzy in cryptocurrencies, blaming the Trump administration’s support for digital assets as a key driver of the bubble, according to a report the Financial Times.

Hedge fund giant Bridgewater Associates has warned that the rise of Chinese AI startup DeepSeek could trigger a short-term correction in tech stock prices, particularly among companies heavily invested in artificial intelligence, according to a report by Reuters.

Hedge funds Brookdale Investment Partners and Eisler Capital have taken a stand against Boaz Weinstein’s Saba Capital in a high-profile fight over control of seven UK investment trusts, according to reports.

Hedge funds were already hitting the brakes on their US artificial intelligence (AI) investments as China’s DeepSeek, a rising AI model, began to disrupt America’s dominance in the sector, according to a report by Reuters.

Global hedge fund assets soared to a record $4.51tn at the start of 2025, marking the fifth consecutive quarter of growth, as investors and fund managers positioned for sweeping policy changes under the Trump administration, according to the latest HFR Global Hedge Fund Industry Report.

Former Millennium portfolio manager Robert Bonte-Friedheim is gearing up to launch a London-headquartered equity hedge fund, Scarlet Macaw Capital, that will begin trading during the second quarter of the year with $200m, according to a report by Financial News.

RBC BlueBay Asset Management’s Emerging Market Credit Alpha Fund delivered a standout 21% return in 2024, significantly outpacing the 14% average for emerging-market (EM) debt hedge funds, according to a report by Bloomberg.

Hedge funds have shifted their focus toward European consumer discretionary stocks, particularly luxury goods, while betting against companies exposed to potential US tariffs, according to a report by Reuters citing a Goldman Sachs note released this week.

Seth Klarman’s Baupost Group, once a standout in the hedge fund world, has seen its clients withdraw approximately $7bn over the past three years as the firm grappled with underwhelming returns, according to a report by Bloomberg.

US activist hedge fund Saba Capital has suffered a setback in its campaign to shake up the UK’s closed-ended investment trust sector, as shareholders of Herald Investment Trust decisively rejected its proposal to replace the board, according to a report by the Financial Times.

Hedge funds have positioned their strategies for Trump 2.0 by ramping up their market positions with the highest levels of borrowing seen since 2010 and bets on the continuing rise of the dollar, according to a report by Reuters.