Liquid Alternatives News

Hedge funds are cutting their stakes in large-cap technology stocks, shifting their focus to a broader range of companies that are involved in, or stand to benefit from advancements in AI, according to analysis from Goldman Sachs.

Two funds previously controlled by Odey Asset Management saw strong performances, ranking them among the top 10 best performing funds globally in April, according to data from Société Générale.

Jain Global, the much anticipated hedge fund set to be launched soon by former Millennium Management Co-Chief Investment Officer Bobby Jain is to commit a significant chunk of its investment funds to commodities – both derivatives and physical, according to a report by Bloomberg.

Hedge funds experienced their first negative month of the year in April, with a weighted average return of -0.7%, according to new data from Citco, but remain in positive territory for 2024 with a year-to-date weighted average return of 6.5%.

Elliott Investment Management, the $8bn activist hedge fund firm founded by Paul Singer, has built a stake worth over $1bn in Johnson Controls International, a specialist in HVAC control systems used by data centres, according to a report by Bloomberg.

Hyperion Decimus, a digital asset management firm and a sponsor of a multi-strategy crypto hedge fund, has launched the HD CoinDesk Acheilus Fund, a strategy that will invest in digital assets leveraging institutional grade fiduciary management.

Peconic Partners, the $1.8bn long-short hedge fund firm run by Bill Harnisch, has continued a four-year winning run so far in 2024, with the fund up 18% year-to-date, extending a run of outperformance that includes a 26% gain in 2022 when the S&P 500 lost nearly 20%, according to a report by Bloomberg.

As well as proving popular with retail investors, bitcoin ETFs have caught the attention of hedge fund majors including Millennium Management, Schonfeld Strategic Advisors and Point72 Asset Management, according to a report by Bloomberg.

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.