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Alternative Market Briefing

Opalesque Roundup: What did IOSCO find after taking a deep look at hedge funds? Hedge fund news, week 48

Monday, November 27, 2017

In the week ending 34 November, 2017, IOSCO said that global hedge fund assets rose 24% to $3.2tln through Q3. Gross leverage of the hedge funds reported in the 4th IOSCO Survey was 7.1x NAV. This figure includes the notional values of interest rate and FX derivative contracts. Removing these figures from the data, gross leverage was 3.1x and net leverage was 1.1x. At an aggregate level, IOSCO said that hedge funds had a considerable liquidity buffer, suggesting that in normal market conditions, they should be able to meet investor redemptions. However, as of the measurement date, 3.8% of hedge fund assets had constrained redemptions through the use of liquidity management tools, such as gates, suspensions, or side pockets.

Hedge fund capital invested in emerging markets rose to a record to begin 4Q17 as capital increased to $223bn; and Preqin said that hedge funds recorded positive net asset inflows of $19.2bn in Q3 2017, bringing year-to-date net inflows to $43.9bn.

Robert Soros is baking Santiago Jariton who plans to launch a hedge fund focused on stock bets in Latin America; Blue Sky Alternative has partnered with Equinox Funds and Deutsche Bank to secure a fresh mandate for its flagship systemati......................

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