Abacus Group’s Post

Brevan sees mixed returns from hedge funds: (Hedgeweek) Brevan Howard saw mixed results from its hedge funds last year with the firm’s digital currency fund surging to a 40%-plus gain while its flagship fund ended the year in negative territory, according to a report by Bloomberg. To […] #hedgefund #portfoliomanagement #capital

How One of the World's Oldest Hedge Funds Went Bankrupt Weiss filed for bankruptcy, a rare hedge fund occurrence Firm is embroiled in a legal battle with its biggest creditor While the firm’s rapid unwinding limited losses for fund investors, Weiss Multi-Strategy Advisers’ collapse leaves some staff standing to lose more than $1 million in deferred compensation. Its biggest creditor is bracing for a fight over more than $100 million in unpaid debts. While the firm’s rapid unwinding limited losses for fund investors, Weiss Multi-Strategy Advisers’ collapse leaves some staff standing to lose more than $1 million in deferred compensation. Its biggest creditor is bracing for a fight over more than $100 million in unpaid debts.  The firm — which ran $4 billion at its 2021 peak — had at least 110 employees, including well-compensated traders and a packed back-office staff, working out of offices in Manhattan, Miami and Connecticut. Exacerbating its financial woes, Weiss had stopped charging clients for various expenses, even though most multistrategy rivals pass on those fees. So when the fund fell 0.6% in 2022, it didn’t receive performance fees but still had to pay bonuses to the portfolio managers who did make money.

Citadel announces plans to return about $7 billion to clients. This move follows double-digit gains in its multistrategy hedge funds over the past two years, pushing assets to an impressive $63 billion. Citadel's flagship Wellington fund, known for its resilience and agility, notched up a remarkable 15% gain through November, capping off an outstanding 38% gain in 2022. In an industry where stability and steady returns are highly sought after, Citadel's performance stands out as an outlier among its multistrategy peers. Multimanager hedge funds, like Citadel, have seen explosive growth in recent years. Investors have been drawn to the relative stability and consistent returns offered by these strategies, which divide funds across numerous teams operating independently across various markets and strategies. While many multistrategy peers have posted single-digit returns this year, Citadel's success remains a testament to its unique approach and market acumen. The capital return, scheduled for December and January, positions Citadel to start the new year with $58 billion in assets. This strategic move aligns with the practice of hedge fund managers returning capital to prevent funds from growing too large, ensuring the ability to make profitable investments in specific asset classes. #HedgeFunds #FinanceNews #Investing #Citadel

Boaz Weinstein is making waves in the hedge fund world with his bid to acquire the struggling Sculptor Capital Management, according to a recent article from Bloomberg. As head of Saba Capital, Weinstein sees an opportunity to expand his $4 billion firm by taking over Sculptor's $8.5 billion flagship fund. He has assembled an impressive consortium of billionaire backers like Bill Ackman and Marc Lasry to support his bold vision. However, Weinstein faces stiff competition from Rithm Capital, which has the support of Sculptor's current management. This contentious takeover battle has captivated Wall Street observers. The outcome will shape the future trajectory of Sculptor, which has weathered scandals, poor performance and infighting in recent years. More broadly, it's a test of whether Weinstein can catapult his firm into the top echelons of the hedge fund industry. Will he pull off this high-stakes deal against the odds? What do you think about consolidation among hedge funds - will it continue as smaller players get squeezed? #HedgeFunds #M&A #WallStreet https://lnkd.in/eGpy8hVb For more insights on the current pulse of the investment industry & private wealth sphere, subscribe to the FINTRX newsletter ➡️ https://lnkd.in/eWMHiUjX

In the ever-changing world of hedge funds, Schonfeld's move to offer fee discounts in exchange for longer capital lock-ins reflects a broader industry trend. The move is in line with other multi-strategy hedge fund firms such as Millennium, Citadel and Balyasny Asset Management L.P., all of whom have also been keeping clients’ cash for longer. Schonfeld is offering a hefty fee discount to clients in its equity hedge fund if they accept new terms which will allow them to take out only 25% of invested capital every quarter once their one-year lock-in period expires It’s part of a broader push by these industry giants, increasingly seeking stability by extending lock-in periods, aiming to fortify their businesses against frequent redemptions. While on the surface it may raise questions, what it really shows is the industry's commitment to ensuring longevity, staff retention, and technological advancement. #investmentmanagement #assetmanagement #alternativeinvestments #hedgefunds 

WHAT WE LEARNED ABOUT HEDGE FUNDS IN 2023   Linus Nilsson once again led an engaging conversation about the current state of the hedge fund industry. Our discussion covered various topics, which ranged from the changing leadership of the top-performing funds and strategies to lessons learned from 2023.   #hedgefunds #allocators #multistrategy #globalmacro   https://lnkd.in/e-KWPUhK

New from me for Business Insider: An inside look at Asia's newest multi-strategy hedge fund, Arrowpoint Investment Partners. My piece dives into how the firm — which began trading today — is differentiating itself in a crowded field: https://lnkd.in/enGnmeKa

The higher rate environment of the last few years has led to a varied landscape across many financial assets, with greater opportunities for identifying winners and losers. In the latest edition of the Q2 Hedge Fund Outlook, Adam Singleton outlines the team's latest views across hedge fund strategies. Here's a glimpse of what to expect: 💡Why the outlook for Structured Credit looks more positive 💡The potential beneficiaries of a pick up in equity market dispersion 💡The opportunities presented by a novel macro environment 💡The outlook for Merger Arbitrage amid a significant expansion in deal activity in both the US and Europe For an in-depth analysis of these areas and more, read our comprehensive outlook. https://ow.ly/5wU650Reamy

Equity long-short hedge funds are coming back into favour for the first time in two years after a turnaround in their performance, attracting $1.5 billion in net inflows in February. Hedge fund stockpickers were among the best performers in 2023 and have continued to shine this year, according to data compiled by Bloomberg. Equity strategies returned nearly 7% over the past three months, outperforming the next best — event driven and macro strategies — which returned closer to 4%. #assetmanagement #alternativeinvestments #investmentmanagement #hedgefunds 

The world’s biggest hedge funds are flush with more capital than ever—so much so that many are allocating billions of dollars to other firms. It is a byproduct of the hedge-fund industry forking into the haves and have-nots. Gains at the top 20 hedge-fund managers represented 83% of the industry total over the past three years, according to fund investor LCH Investments. Firms with more than $5 billion under management account for nearly 73% of hedge-fund assets, according to research provider HFR. Much of that concentration is a result of new assets piling up at multimanager hedge funds. Millennium, Steve Cohen’s Point72 Asset Management, Balyasny Asset Management and other such firms fan out money across dozens to hundreds of teams with distinct investment strategies.  Among multimanager hedge-fund firms tracked by Goldman Sachs’s prime-brokerage unit, 61% now allocate at least some capital to outside firms or managers. That is up from 52% in December 2022.  “Some of these great multimanagers have more capital than they have capacity for,” said Roark Stahler, U.S. head of strategic consulting at Barclays’s prime-brokerage unit. “Making an external allocation is a great way to put money to work.” #hedgefunds #assetmanagers #assetmanagement #alternativeinvestments #assetallocation #millennium #point72 #balyasny #goldmansachs #barclays #citade