Investors Getting Advice on Social Media Spooks EU Markets Chief (link)
The lessons of the Gamestop Corp. buying mania is that social media exposes individual investors to potential losses and the risk of breaking rules for preventing price manipulation.
Maijoor said that the experience calls for the better application of existing rules rather than an update to regulation.
Another point to look into is the role of online brokers that allow investors to buy securities without paying a commission. "The relevant brokers of course get payments, we know that that is happening for how they raise their order flows, and that raises questions around putting the interest of clients first.” said Maijoor.
Plotkin Says Hedge Funds Will Adapt in Wake of GameStop Rout (link)
“I don’t think investors like myself want to be susceptible to this type of dynamics” Plotkin said, referring to the astronomical level of short interest in GameStop. “There will be a lot closer monitoring of message boards,”.
Plotkin said that he had been short GameStop stocks since 2014, and that he closed out that position days before Robinhood Markets and other brokerages prevented their customers from buying those stocks.
Equities and macro names drive Brummer multi-strategy hedge fund’s February rebound (link)
Brummer Multi-Strategy (BMS) vehicle’s SEK class has risen 4.5 per cent in the first two weeks of the month, while twice-levered Brummer Multi-Strategy 2xL version of the fund is up 9 per cent.
The biggest returns have come from the stock-picking strategies, long/short Manticore has soared with a muscular 10 per cent advance. Black-and-White (L/S strategy) has recovered from last month’s 5.3 per cent and is up an estimated 6.7 per cent.
Lynx, the SEK-denominated trend following fund, is up almost 5 per cent, having earlier lost 0.3 per cent in January. But machine-learning strategy Lynx Constellation, which lost 2.5 per cent in January, remains on a downward spiral, with1.2 per cent lose.
Systematic trend-follower Florin Court has reversed January’s 1.2 per cent loss with a 1.9 per cent gain, while AlphaCrest, a quantitative equity manager, has added 2.5 per cent so far this month, and is now up 5.2 per cent since the start of 2021.
West coast quant hedge fund Creighton names boutique veteran Ryan Willson as CEO (link)
Willson was previously head of North America at a quantitative investment firm, which specialises in systematic global equity long/short and long-only strategies using proprietary machine-learning algorithms.
CAI invests in equities using proprietary machine learning techniques and factors which measure stock market data and historic investor behaviour in order to predict future stock market patterns.
“We launched a fund based on our Global Long/Short strategy at the beginning of 2021, and we have been sub-advising the same Global Long/Short strategy and long-only strategies for institutional clients in Australia for the last thirteen months,” Creighton said.
Pictet Asset Management homes in on emerging markets with new multi-asset fund (link)
Pictet Emerging Markets Multi-Asset Fund trades equities, sovereign bonds, credit, commodities, real estate, money markets and currencies across emerging markets globally.
The new fund aims to remove the pressure of “how, when and where” to allocate within emerging markets. Pictet AM added that emerging markets offer the best long-term returns globally amid a lower return environment
“We believe, in the long-term, emerging markets offer the best value for investors. However, emerging markets can be subject to higher levels of volatility, making asset allocation decisions difficult for investors,” Olivier Ginguené, Pictet AM's CIO.
“Our new strategy aims to take the stress out of that process for the investor, by taking those decisions on their behalf and smoothing returns across the economic cycle.”
Cryptocurrency hedge funds’ stratospheric rise continues, as more managers join bitcoin stampede (link)
Hedge Fund Research’s Blockchain Composite Index, soared over 48 per cent in January, opening 2021 in style after gaining a remarkable 189 per cent last year.
HFR’s Cryptocurrency Index – a performance-based benchmark of fundamental and quantitative hedge funds that trade cryptocurrencies directly – was also up more than 48 per cent in January, following 2020’s astonishing 193.6 per cent return.
US hedge fund veteran Bill Miller’s long-running flagship fund has stepped into the bitcoin space through the Grayscale Bitcoin Trust, a bitcoin-focused private investment vehicle.
The path was followed by Paul Tudor-Jones, the macro-focused founder of Tudor Investment Corp, Michael Novogratz, the Fortress Investment Group manager, and Altana Wealth, the hedge fund firm set up by Lee Robinson.
Raoul Paul, a former Goldman Sachs hedge fund manager and CEO of Global Macro Investor, hailed bitcoin as “the biggest trade of our lifetimes”.
As more hedge fund managers join the digital currency stampede, it's the early days of simple long bets on assets are making way for more sophisticated asset-linked strategies, and punts on income generated by underlying technology.