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In the week ending June 23rd 2023, HFR stated that the hedge fund industry's performance has been underwhelming thus far in 2023. The HFRI Index shows year-to-date returns through May of only +1.25%, and most strategies' returns range between -2.5% to +3.5% YTD. However, one bright spot within the industry has been ILS, or property catastrophe risk reinsurance, where the Eureka ILS Advisor Index in USD is up +5.95% through May. This marks the strongest start of a year for the ILS index since 2007. It also highlights the minimal correlation between reinsurance strategies and both equity and fixed income markets. Uncorrelated strategies reduce overall portfolio volatility which is why many of the largest pensions, endowments, and sovereign wealth funds have allocations to ILS. According to first-ever Seward & Kissel Established Manager Hedge Fund Study, the new hedge funds pursuing traditional investment strategies charged an average management fee of 1.9%, while the funds pursuing bespoke investment strategies charged an average management fee of .925%. The study reveals a sharp divergence in the management fees charged by such funds depending on their investment strategies. In new launches, a new China-focused hedge fund, led by a former Hillhouse Capital Management fund manager, has raised between $100 million and $150 million, marking one of the strongest launches for a China-focused fund this year; The Tehran Stock Exchange (TSE) is working to establish the first hedge fund, the SENA news agency said Sunday, and Dyal Capital, the investing unit owned by Blue Owl Capital Inc., is seeking to raise $13 billion for its sixth investment fund, according to people familiar with the firm's plans. Meanwh...................... To view our full article Click here |
Alternative Market Briefing Weekly
Saturday, June 24, 2023
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