Liquid Alternatives / Trends

Steve Cohen’s Point72 Asset Management is preparing to return a significant portion of capital to investors for the first time, joining other large multi-strategy hedge funds that are capping assets after a period of rapid growth, according to a report by Bloomberg.

ExodusPoint, the $11bn multi-strategy hedge fund led by former Millennium executive Michael Gelband, has responded to investor pressure by introducing a new fee structure, tying performance fees to short-term Treasury yields, according to a report by Business Insider.

Hedge funds navigated an historic volatility surge in early August, with equity hedge and fixed income-based relative value arbitrage strategies leading that way, as the HFRI Fund Weighted Composite Index advanced +0.25% for the month.

Wildcat Capital Management, originally established as the family office of billionaire David Bonderman, has invested over $200m in a new hedge fund, Whitebark Investors, which has been spun out of the firm under the leadership of Thomas McConnon.

The once-booming multi-manager hedge fund sector, pioneered by firms like Citadel and Millennium, has seen its first net outflows in seven years, signalling that investor interest may be fading, according to a report by the Financial Times citing data from a new report by Goldman Sachs.

Hong Kong-based investment firm Sengu Capital is gearing up to launch a new hedge fund that will look to tap into Japan’s financial market resurgence by employing an investment strategy focused on improvements in corporate management in the country, according to a report by the Japan Times.

Hedge fund Davidson Kempner will close one of its funds amid a tougher environment for hedge funds that buy into the debt of distressed companies hoping to make money from their comeback, a letter sent to investors and seen by Reuters on Friday shows.