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Alternative Market Briefing Weekly

Opalesque Roundup: One third of surveyed hedge funds break even with $50m or less assets: hedge fund news, week 28

Saturday, July 08, 2017

In the week ending 07 July, 2017, a study by AIMA has found that most alternative investment management firms are able to turn a profit and expand with considerably less than $100m in assets.

The survey of 135 alternative asset managers globally found that the average break-even point is around $86m, while around a third are able to break even with $50m in assets or less. Break-even was found to be highest among global macro hedge fund firms that responded to the survey ($132m on average) and smallest for alternative credit fund managers ($77m).

At the same time, yet another study found that emerging hedge funds with assets less than $100m actually perform better than their much larger peers.

Nitish Kumar, Kevin Mullally, Sugata Ray and Yuehua Tangwe claimed that the 'abnormal' hedge fund trades are based on prime broker information flow offer 4% superior performance.

Leda Braga's Systematica Investments has launched its first dedicated fund targeting relative value trading opportunities; Owl Rock has launched a new middle market direct lending fund with the University of California Regents fund; Winton is launching the Winton Absolute Return Futures Fund; MegaTrust Investments launched the MegaTrust Yangtze Fund IV, the first offshore fund based on its award-winning A-share strategy; Daniel Sundheim is planning to start an equity hedge fund in the second half of 2018; JPMorgan Asset is preparing to make hedge fund strategies available to the man on the street with the launch of a new suite of actively-managed ETFs; and Mick Davis is backing a new indust......................

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