• Key market indices
    • S&P 500: 3829.34 -2.45%
    • DJIA: 31402.01 -1.75%
    • HSI: 31084.94 +1.20%
    • STI: 2920.43 +1.67%
    • Gold Spot $/Oz: 1772.97 +0.14%
    • Brent Crude: 66.59 -0.43%
    • Bitcoin: 47356.21 -6.27%
  • 2021 could be a "breakout year" for hedge funds, says Barclays (Link)
    • Hedge funds could draw between USD10 billion to USD30 billion of projected net inflows from investors, and around USD450 billion in gross allocations, in what could prove a "breakout year" for managers, said a Barclays research report.
    • The report found that allocator sentiment towards hedge funds is the strongest since it's been since 2014, with 41% of all investors planning to increase their hedge fund exposure this year.
    • Now, with significant cash sitting on the sidelines, all investor types indicated plans to put more capital to work, with Family Offices and Private Banks indicated to have the most bullish plans.
  • ESG investments set to grow more after strong 2020 (Link)
    • ESG investments saw a strong performance and an influx of flows in 2020 and are expected to be a key driver of organic asset growth for money managers in 2021, said a study.
    • According to the New York-based ratings agency's report, inflows into ESG strategies grew 140% in 2020 from the year before. Since 1995, ESG assets have routinely grown at a compound annual growth of 14%, although the growth has picked up rapidly since 2012.
    • ESG-themed investments saw $80.5 billion in global net inflows in the third quarter, up 14% from the previous quarter. Sustainable fund AUM reached a record high of $1.23 trillion as of Sept. 30.
    • Looking ahead, ESG investment products will be the next growth frontier for traditional asset managers, as even in a difficult environment for equity performance, these investments have seen strong returns and AUM growth among asset managers with a strong emphasis on ESG products.
  • Markets have not moved in lockstep like this since the financial crisis (Link)
    • PivotalPath has been tracking what are called pairwise correlations for more than 200 global risk factors since the beginning of 1998, which are indicators of risk. Correlations were at an all-time high in January, according to the firm.
    • The indicator last month was higher than during March 2020, the beginning of the economic shutdown caused by the pandemic, and the 2008 financial crisis`, which was its previous peak.
    • The correlations between all these different risk factors make intuitive sense given the overall environment as every single market right now is driven by the pandemic and vaccines.
    • Multi-strategy funds had a correlation with the composite of 0.97; equity diversified global long-short funds hit a correlation of 0.96; and convertible bond arbitrage came in at 0.92. Credit strategies had a 0.93 correlation and distressed debt had a 0.95 correlation with the composite.
  • Investing heavyweights managing $21tn see FOMO driving bitcoin to $100k by year-end (Link)
    • A poll of 125 investors found that the 'fear of missing out' is cited as the most significant factor driving up bitcoin's value.
    • Some of the world's largest investors have indicated bitcoin is in bubble territory, with almost 30% predicting frenzied speculations will drive its price to $100,000 or more by the end of 2021.
  • Data firm that monitors Reddit says it saw GameStop mentions spiking days ago (Link)
    • Mentions of GameStop increased on Reddit days before shares of the video-game retailer took off again, according to Justin Zhen, co-founder of Thicknum, a tech firm that compiles alternative data sets for investors.
    • Whatever the cause, the GameStop resurgence calls to mind the Reddit-sparked trading mania that first engulfed the stock in January, when it soared to $483 per share.
    • In addition to the recently launched Reddit offering, Thicknum has about 30 other datasets, such as those focused on product pricing and where companies are opening stores.
  • Hedge fund Broad Reach chooses Arcesium;s modular Treasury Suite (Link)
    • London-based alternative investment firm Broad Reach Investment Management has chose Arcesium's modular Treasury Suite to scale its treasury operations and management functions.
    • Arcesium's treasury technology introduces transparency and control into Broad Reach's collateral management workflows, providing an independent,holistic view to their data. Broad Reach can further optimize their multi-asset collateral allocation through advanced margin replication and simulation capabilities of the technology suite.
    • Arcesium's Treasury Suite is designed to empower fund managers to optimize funding decisions across their prime brokers, swap counterparties and other third parties.

 

Click to learn about our Annexe Fund

Follow us on LinkedIn