Liquid Alternatives News

Quant hedge fund Renaissance Technologies was positioned to benefit from the meme stock mania sweeping the US this week, having added a new long position in GameStop and significantly increased its position in AMC Entertainment during Q1, according to a report by Reuters.

The prospect of softer US inflation bringing the outlook for monetary policy on both sides of the Atlantic closer in sync has pushed demand for options that pay out if the euro strengthens against the dollar over the next week to the highest seen since February, according to a report by Bloomberg.

„Hedgefonds verzeichneten im April beeindruckende Zuwächse“, zitiert Kenneth J. Heinz, Präsident von HFR, aus der jüngsten Erhebung seines Hauses. Angeführt wurden die Zuwächse von Makro-Strategien sowie den größten und etabliertesten Fonds der Branche, derweil die Finanzmärkte verstärkt in den „Risk-off“-Modus wechselten.

Digital asset investment products saw inflows totalling $130m last week, the first positive flows seen in five weeks, according to the latest digital assets fund flows weekly report from CoinShares. Regionally, the US saw the majority of inflows totalling $135m, with incumbent Grayscale seeing the lowest weekly outflows since January.

The sudden re-emergence of “Roaring Kitty” – aka Keith Gill – on social media triggered a huge surge in the price of GameStop shares that left short sellers facing losses approaching $1bn, according to a report by CNBC citing figures from data provider S3 Partners.

Bankrupt retailer Bed Bath & Beyond is suing Hudson Bay Capital Management – the hedge fund at the centre of a filed last-ditch rescue plan for the business – for more than $300m in lost trading profits as it looks to generate cash for its creditors, according to a report by Fortune.

New York-based bank JPMorgan Chase & Co will limit its interactions with Segantii Capital Management, a $4.8bn Asian hedge fund led by Simon Sadler, which is currently facing insider trading charges in Hong Kong, according to a report by Bloomberg.

Hedge funds saw an estimated $9.9bn in investor withdrawals during March, a big increase on the $780m seen in February as the industry’s run of net outflows stretched to 22 consecutive months, according to a new report from Nasdaq eVestment.

Hedge funds advanced in April as equities declined, led by macro strategies, which extended their first quarter gains through the month, and the industry’s largest funds, with the HFRI Macro Asset Weighted Index advancing 2.6%.

Hedge funds turned bullish on consumer stocks during the week ending 3 May as the latest economic data, including a softening in the US labour market, and comments by Federal Reserve Chair Jerome Powell combined to revive bets on interest cuts, according to a report by Bloomberg.

The Asset Management Association of China (AMAC) has published tighter rules for the country’s hedge fund sector, including an increase in the minimum asset threshold as well as new restrictions on the use of derivatives and leverage, according to report by Bloomberg.