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Opalesque Roundup: CTAs and trend-following hedge fund strategies maintain their momentum, hedge fund news, week 20

In the week ending May 15th 2020, CTAs and trend-following hedge fund strategies maintained their recent impressive momentum, profiting from continued trends across commodities and bond markets, new Société Générale data for April showed. As the economic toll of the novel coronavirus mounted, managed futures posted another positive month in April and gained 0.12% according to the Barclay CTA Index and year-to-date, CTAs gained 1.43% through the end of April.

BarclayHedge also said that U.S. stocks had their best month in decades in April and hedge funds sailed to a 5.46% return in April, according to the Barclay Hedge Fund Index. By comparison, the S&P 500 Total Return Index was up 12.8% in April.

eVestment also said that hedge funds gained an average of +5.02% in April after the largest average monthly loss on record in March, bringing average losses to -7.49% for the year. It is important to remember that while March losses were worse than any single month prior, during the global financial crisis there were large losses in both September and October, and losses in surrounding months as well though not of the same magnitude.

Echoing the same sentiments, hedge funds recouped some of the losses they suffered amidst pandemic-induced market chaos, said Eurekahedge. The Eurekahedge Hedge Fund Index was up 3.73% in April - recording its strongest monthly performance in recent years, supported by the strong performance of the underlying global equity market as represented by the MSCI ACWI IMI (Local), which gained 10.47% over the month.

In new launches, London-based hedge fund Cheyne Capital is planning a new vehicle to buy up debt that's been excessively punished by the coronavirus selloff, the latest in a number of investment firms targeting distressed credit; Emergence, the fund dedicated to accelerating entrepreneurial management companies, announces that it has appointed NewAlpha Asset Management as the investment manager of its future European sub-fund, Emergence Europe, which will be launched before the end of the year, and US-based asset manager Golub Capital announced that it has raised $3 billion of new investment firepower in the past six weeks.

In the meantime, Colorado-headquartered private equity investor Rubicon Technology Partners closed a new fund, Rubicon Technology Partners III, at over $1.25 billion, exceeding the fund target of $250 million set by the company; BDT Capital Partners raised $9.1 billion for its third investment fund, exceeding the amount it had initially sought and Digital Colony, an arm of Tom Barrack's Colony Capital Inc., is seeking at least $6 billion for its second fund dedicated to communications-infrastructure bets

Further in new launches, international investment firm Cathay Capital Private Equity announced the final close of its second Sino-European Mid Cap Fund at $850 million; As economic prospects cloud and volatility returns to all asset classes, investors are looking for alternatives to traditional alternative investments and meeting this need, the Aaro DLT Multifund launched on May 1, 2020; Thoma Bravo is back in the market seeking commitments for its third fund focused on midmarket investments, despite the disruptions posed by the coronavirus pandemic; Dallas-based venture capital firm Energy Spectrum Capital has wrapped up fundraising for its latest vehicle with $969 million; Crow Holdings is targeting a $1.5bn (€1.4bn) capital raise for its latest US value-add real estate fund, while Fortress Investment Group LLC is seeking more than $1 billion for its second lending fund

In performance news, CQS Directional Opportunities fund, a hedge fund run by billionaire trader Michael Hintze has suffered a second large fall in as many months, leaving it down roughly 50 per cent in what is shaping up to be its worst ever run of performance; After suffering its third-worst quarter in its history the Tiger Cub's major funds enjoyed their second-best month in the firm's history in April, according to its first- quarter letter obtained by II; Odey Asset Management's Odey European fund fell 9.5% in April and is now down 3.7% in 2020; Eric Bannasch's Cadian Capital surged about 18 percent last month, exceeding the S&P 500's 13 percent gain during the stock market's best month since 1987, and Verde Asset Management's flagship fund climbed 8.6% in April, its biggest monthly gain since 2009.

In institutional investor news, Texas Teacher Retirement System, Austin, committed $725 million to five alternative investment funds in April, a transaction report from the $167.2 billion fund showed; Louisiana Teachers' Retirement System, Baton Rouge, app... Click here to read Opalesque's full article

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Derivatives Forum Frankfurt 2021, 23-24 March - Virtual event

The Derivatives Forum Frankfurt 2021 will be held as virtual edition with thought leadership insights, industry debates, keynote speeches and virtual networking opportunities. The Derivatives Forum is the leading European event focused on trading and clearing for derivatives and securities financing across asset classes.

Originally planned as a physical event early March, the Derivatives Forum is set to be on March 23 & 24 focusing on the following core themes:

STREAM 1 - Markets & Regulation
STREAM 2 - Derivatives & Portfolio Management
STREAM 3 - Liquidity & Collateral Management
STREAM 4 - Technology & Innovation
STREAM 5 - Responsible Investing

More information, registration: https://www.eurex.com/ex-en/find/forum/frankfurt2021

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ASSET RAISING: TIME TO TURN THE TABLES!

The pandemic has structurally changed the process and methods of asset raising. Hedge funds, for example, got estimated net inflows of $13.0bn in 3Q 2020 but $11.2bn (82%) went to funds managing more than $5bn. Mid sized firms suffered outflows of $810m while those with less than $1bn received inflo...

Yesterday"s Top Stories

SPACs: The SPAC shareholder class action boom is coming, SPACs have a hidden risk that investors need to know about

SPACs: Jeremy Grantham: "SPACs should be illegal", Spacs may fuel European IPO boom, SPAC IPOs surge, The SPAC pop is now a thing: More unicorns getting on board, Paysafe readies $9bn IPO Via SPAC

News Briefs: What if data scientists had licenses like lawyers?, Next generation behind family offices' ESG push

SPACs: SPAC costs are 'far higher' than previously realized, study finds, Jim Cramer recommends profit taking in speculative electric SPAC names.

Institutional Investors: Pensions swamped in a sea of negative real rates, Bahrain's pension fund authority faces collapse

Technical Research Briefing

S&P FUTURES (@ES) – Daily

Currently: Long Looking to: Sell @ 3,951; short @ 4,075

As of 1/15/21 close: 3,762.25

LAST WEEK: We suggested buying dips in ES futures to 3,748 with stops honored on a close below 3,652 and with an upside target of 4,078.

UPDATE: S&P futures pulled back from the highs near 3,820 last week and tested initial support at 3,747.25. Right now, we are of the opinion that support holds and that we see another upside run commencing soon. The anticipated rally should, in theory, take prices up to 3,951.50 at the very least.

We would cover shorts and get long immediately with stops honored on a daily close below 3,747 and with an upside target for selling longs at 3,951.

We would only look to get short on an extended move up to 4,075 with stops honored on a close above 4,118 and with a downside target for covering / getting long at 3,672.

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