Newsletter Items: September gain of 0.42 per cent takes hedge funds to +5.33 per cent YTD, says EurekahedgeQuantile launches LCH compression serviceHeptagon launches new alternative UCITS fund with a New York based Manager BNY Mellon and HSBC team with Algomi to unlock corporate bond liquidityWall Street Horizon launches EventBreaksOpus Fund Services named Best North American Fund Administrator at 2017 Hedgeweek USA AwardsBroadridge completes pilot of blockchain-based bilateral repo solutionFIX Trading Community releases MiFID II best execution reporting recommended practicesMetamako and STAC set new industry standard for measuring timestamp accuracyEU nationals in UK investment management industry on the move post-Brexit, says CFA surveyApex expands local offering from BermudaCubeLogic opens new office in SingaporeBloomberg and Castine link systems for end-to-end MiFID II research and P&L solutionStyle Research expands in Asia PacificSGX launches SGX America with office opening in ChicagoBanner: 177117711771177117711771Skyscraper: 177217721772
September gain of 0.42 per cent takes hedge funds to +5.33 per cent YTD, says Eurekahedge
Hedge funds were up 0.42 per cent in September, with 2017 year-to-date gains coming in at 5.53 per cent, according to the October 2017 Eurekahege Report. Total hedge fund assets grew by USD157.52 billion over the past nine months with USD83.1 billion attributed to investor inflows while managers posted performance-based gains of USD74.4 billion. The industry's total assets currently stands at USD2.38 trillion. Long/short equities mandated hedge funds led the table for the month with gains of 1.46 per cent. On a year-to-date basis, long/short equities hedge fund managers also topped the tables gaining 9.00 per cent. Year-to-date investor allocations for long/short equities hedge funds currently stand at USD18.9 billion, the highest year-to-date net inflows among strategic mandates this year. CTA/managed futures hedge funds declined 1.37 per cent this month and down 0.76 per cent year-to-date, the mandate's worst year-to-date returns on record with its sub-group of commodity focused strategies down 1.22 per cent while trend following strategies declined 3.10 per cent. CTA/managed futures managers posted performance-based losses totalling USD7.1 billion this year while net inflows totalling USD12.7 billion were recorded over the same period. nsurance-linked securities (ILS) hedge funds registered losses of 5.08 per cent in September and down 3.29 per cent year-to-date as managers portfolio was affected by US hurricane exposure. While some funds have already posted losses in August and September, the full degree of damage from Harvey, Irma and Maria would only truly reveal itself in the coming months. For details see our latest Strategy Profile on ILS Hedge Funds. New fund launches activity has been slowing down, with 421 launches over the first three quarters of 2017 which compares to 543 and 658 launches over the same period in 2016 and 2015 respectively. Meanwhile pressure on fees remains with the...
Newsletter Items: CFTC releases positive results of clearinghouse settlement liquidity stress testsMacro Funds’ disconnect coming to an end, says LyxorApex Fund Services nearly doubles AuA with latest acquisitionHedge funds up 1.43 per cent in September, says PreqinTradeweb launches electronic swaptions trading on TW SEFDTCC white paper sets out framework for assessing fintech impact on financial stabilityTNS launches managed hosting in the Australian Liquidity CentreCrayhill Capital Management appoints Head of Investor Relations CBOE Holdings unveils new corporate identityWilshire Consulting assists IPERS in “alpha search” RFPBanner: 1889188918891889Skyscraper: 18901890
CFTC releases positive results of clearinghouse settlement liquidity stress tests
The US Commodity Futures Trading Commission (CFTC) has issued a report detailing the results of an evaluation of settlement liquidity at clearinghouses. All of those tested including CME Clearing, ICE Clear US, and LCH, demonstrated the ability to generate sufficient liquidity to fulfil settlement obligations on time. The purpose of the analysis was to assess the impact of a hypothetical extreme but plausible market scenario on the ability of three clearinghouses to meet their settlement obligations on time. It is the second systemic stress testing report issued by CFTC, following its Supervisory Stress Test of Clearinghouses published in November 2016. The analysis encompassed cleared futures and options, and interest rate swaps. It assumed the default of the same two systemically important clearing members at each clearinghouse. Both the house accounts and customer accounts of these clearing members were analysed. It used actual positions and collateral as of August 16, 2017. CFTC staff designed and performed the stress test internally. Staff provided the clearinghouses an opportunity to comment on the results. Each clearinghouse provided an analysis of how it would generate sufficient liquidity to meet variation margin needs. Staff contacted at least one liquidity provider listed by each clearinghouse. The clearinghouses generated funds in a number of ways. The range of methods included: (i) using cash received from maturing reverse-repurchase agreements, (ii) selling collateral, (iii) accessing cash balances at a commercial bank, (iv) accessing cash balances at a central bank, (v) converting one currency to another, and (vi) entering into repurchase agreements. The three clearinghouses used different combinations of these methods. In instances where multiple DCOs used the same methodology or the same firm to meet liquidity demands, staff concluded that the cumulative size of liquidity requirements in this scenario would not impair the ability of...
Newsletter Items: So far so good for hedge funds in 2017Granite Shore Power submits winning bid for Eversource Energy assetsCMi2i’s shareholder ID analysis available on Bloomberg TerminalBNP Paribas Securities Services and TCS team to launch Blockchain-based Corporate Event Connect SmartStream launches new version of TLM Reconciliations Premium Banner: 18821882Skyscraper: 1881
So far so good for hedge funds in 2017
The Lyxor Hedge Fund Index was up 0.8 per cent for October, with six out of nine Lyxor indices in positive territory according to the company’s latest Alternative Investment Industry Barometer. Global Macro funds recovered with all portfolios contributing to the performance. CTAs underperformed, hit by rising bond yields and the strengthening of the USD. “While 2015/16 proved challenging for active investors, 2017 is offering a much better vintage for the hedge fund industry,” says Jean-Baptiste Berthon (pictured), Senior Cross-asset Strategist, Lyxor Asset Management. “Market drivers were less speculative (fading influence from politics and monetary decisions), which led assets to trade closer to their fundamentals. Firming global growth momentum spurred more directionality. Economic divergences widened across regions, offering more relative opportunities. Major central banks confirmed they will start normalizing their policies. It could lift a key barrier for alpha generation. “This better backdrop helped hedge funds produce more sustainable alpha throughout the year. They rank favourably against most of their multi-strategy peers in risk-adjusted performance and offered more diversification with less correlation vs. mainstream asset classes and across hedge fund strategies.” offResults and performanceFunds