Post on 05-Jun-2018
The Best of Both Worlds
The new HFM combines the news focus of HFM and the performance data expertise of HFI, giving members even better value than before.
All of your favourite titles are now available on one platform, hfm.global. The HFI titles continue to cover the same performance news stories, opinions, analysis and profiles by region and HFM’s products maintain their focus on fund news, strategy focus and operational support and insight.
Investment in data is what sets HFM apart. With a brand new team of researchers in the UK focused on hedge fund performance as well as allocators to hedge funds and mandates, this is the number one data resource for anyone working within hedge funds.
HFM, through the acquisition of HFI and its flagship brands - EuroHedge, AsiaHedge, InvestHedge and Absolute Return - now offers members a unique suite of world-class news, performance data and events services that deliver value to everyone in the global hedge fund community.
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HFM membership now includes the HFI products, providing members with access to a unique portfolio of world class services delivering the latest hedge fund industry news, accurate and reliable data and insights, as well as outstanding events.
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IS CHINA REALLY OPEN TO FOREIGN CTAs?How managers can enter the world’s second-largest economy
INVESTING ACROSS THE TREND SPECTRUMCampbell & Co o�ers a tool to evaluate trend programs
QUANT MASTER: THE MAN BEHIND FQSRobert Frey reveals plans for further quant investment
PUBLISHED BYPUBLISHED BY
ISSUE 51 JUNE 2017 WWW.CTAINTELLIGENCE.COM
JUN
E 2017
GoldilocksThe
effectWHY INVESTORS ARE
TUCKING INTO SMART BETA
001_CTA51_Cover.indd 2 26/05/2017 16:10
www.hfmweek .com
HFMWeek research highlights continued growth of major players in the sectorBY SAM MACDONALD
03
COMMENT THE MAKINGS OF A NEW ADMINISTRATION MODEL 14
Biggest MAPs see surge of assets in HFM survey
ANALYSIS 20REDEMPTIONS 07
BREVAN FACES MORE OUTFLOWS ON AON MULTI-STRAT RATING Consultant downgraded fund from ‘buy’ to ‘sell’ last year
LAUNCHES 03
EX-MOORE CAP SENIOR PM TO LAUNCH SYSTEMATIC FIRMLev Mikheev set to debut Bernina Systematic with $180m
LAUNCHES 05
EX-BLUECREST PM READIES RISK-SHARING PLATFORM Michael Sandigursky staffs up ahead of Whitecroft launch
HFM’s latest managed account platform survey highlights continued infl ows to external platforms
The long and the short of it ISSUE 459 25 MAY 2017
ANALYS IS 16
INSTITUTIONAL INVES-TOR appetite for managed accounts has fuelled a 16% surge in assets for the top 10 managed account platforms (MAPs) over the 12 months to 1 March, the latest HFMWeek research reveals.
St ate St ree t- ow n ed InfraHedge led the way with a 36% rise in assets over the year, from $19.3bn to $26.3bn, cementing its place as the larg-est platform for a third con-secutive time, the HFMWeek Managed Accounts Universe study shows.
BNY Mellon’s MAP arm,
HedgeMark, now sits in second place, boasting asset growth of 22% to $10.6bn, from $8.7bn a year prior. Assets on Man Group’s FRM platform, the third largest, rose 17% to $10.3bn, up from $8.8bn last year.
Overall assets of the top ten MAPs was $95.7bn, compared to the $82.5bn managed by last year’s biggest platforms.
InfraHedge CEO Bruce Keith said its investors are not allocat-ing to the space for the liquidity offered by managed accounts, but are interested in the oth-er advantages the structures afford.
“Our investors are not chas-ing liquidity and are more inter-ested in transparency of man-aged account struct-ures, the independent
SALT 2017: HUMILITY AND A LITTLE BIT OF OPTIMISM
BIG NAMES OFFER THEIR INSIGHTS AT THE ANNUAL LAS VEGAS BASH
2017
MANAGED
ACCOUNTS
UNIVERSE
THE BIG GET BIGGER AS MAP GIANTS CONTINUE TO SEE
SIGNIFICANT GROWTH
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BUY VERSUS BUILDWhy are we so attached to an outdated debate?
FEATURE 14
NOT SEEING WHAT ISN’T THERESelection bias is a bigger risk in the age of algorithms COMMENT 20
V IS IT HFM.GLOB AL/HFMTECHNOLOGY FOR MORE TECHNOLOGY UPDATES
THE DEF IN IT IVE GUIDE TO HEDGE FUND TECHNOLOGY
ISSUE 41 MAY 2017
DOW JONES LAUNCHES DATA, NEWS AND ANALYTICS PLATFORMPremium news archive opens to developers for first time in 130 years NEWS 04
PEER REVIEW: MESSAGING SERVICESMain players and newcomers evaluated on price and functionality SURVEY 18
001_HFMTech41_Cover.indd 1 19/05/2017 16:55
TAX 07
HOW THE SEC IS RAMPING UP ITS DATA DEMANDSADVISE TECHNOLOGIES JEANETTE TURNER TALKS ABOUT MODERNISED REPORTING
COMMENT 11
WHAT THE UK CRIMINAL JUSTICE BILL MEANS FOR MANAGERS Aima’s Paul Hale examines the tax law and its impact
SEC 03
SEC WARNS MANAGERS ON ‘INADVERTENT’ CUSTODIANSAgency remind managers to review procedures
MIFID II 10IS IT THE END OF ‘FREE’ CAP INTRO IN EUROPE?The growing reach of Mifi d II splits experts
V IS IT HFM.GLOBAL/HFMCOMPLIANCE/ FOR MORE REGULATORY UPDATES
YOUR DEF IN IT IVE HEDGE FUND REGULATION ROUND-UP
ISSUE 61 MAY 2017
NEXT STORM
WHAT US TAX REFORM MEANS FOR
HEDGE FUNDS
THE
001_HC61_Cover.indd 1 28/04/2017 16:23
PUBLISHED BYPUBLISHED BY
JUNE 2017 ISSUE 26 www.altcreditintelligence.com
JUN
E 20
17
SIZE DOES MATTER Phoenix Investment on the advantages of right-sizing
SHEDDING A TIER FOR CLOsBlack Swift Group � nds value in CLO managers out of the limelight
LENDING TO THE MIDDLE MARKETIdinvest gets comfortable with ECB’s new lending guidelines
SHEDDING A TIER FOR CLOBlack Swift Group � nds value in CLO managers out of the limelight
001_AC26_Cover.indd 2 09/06/2017 16:19
AKO Capital enjoyed a powerful fi rst third of the year – with the fi rm’s fl agship AKO Fund up by almost 14% through April, and its more recently launched AKO Global strategy up by over 12%.
Ross Turner’s Pelham Capital has also been on a strong run so far this year – with the fi rm’s Pelham Long/Short Small Cap fund gaining 20% to the end of April and the fl agship Pelham Long/Short fund up by almost 10%.
Martin Hughes’ Toscafund group is among other brand-name fi rms generating good returns in the opening months of 2017 – with the fl agship Tosca strategy, run by
Johnny de la Hey, up by over 10% to the end of April and with sev-eral of the group’s other equity-focused strategies performing well.
Lansdowne, GLG, Kairos, SW Mitchell and Antares are among other long-established players that have also generated impressive numbers this year from several of
their equity long/short strategies. For the long/short space as a whole, the EuroHedge medians for European and global equity were both up by 4.5% through April – compared with full-year median losses for both strategies of around 1% in 2016.
Among the very small minority of long/short managers that have suffered losses, Odey European was down by more than 9% to the end of April – on top of its 49% plunge in 2016 – while Horseman Global fell by almost 10% in the fi rst four months for a rolling 12-month loss of 27.51%.For full performancedetails, see pp 21-35
CONTENTS
PERFORMANCE ANALYSISMacro and CTAs lag as Europeanhedge funds continue strong run
»21-22
Equity long/short funds fl y as markets defy political risk
2 Editorial A time of opportunities, and a time of challenges
3-4 News Beckwith’s Pacifi c group acquires stake in EM equities manager North of South. Schroders teams up with Conatus for latest addition to its GAIA alternative UCITS range. Ex-Permal veteran Souede joins up with Colen at hybrid alternative asset manager SCP Investment. UBS Asset Management hires Citi’s Harford as new head of investments. FAB Partners buys Halkin, rebrands the combined entities as Centricus
21-35 Performance European equity managers make hay. Event-driven players keep good returns coming. EuroHedge Composite index up another 0.5% in April
Gemsstock, the well-performing London-based global macro fund managed by Al Breach and Darren Read that has won the EuroHedge Award for macro in both of the last two years, has reopened with a view to taking in an additional $400 mil-lion of capital.
The fund, which deploys a value-oriented and opportunity-driven strategy across the major asset classes, has been one of the best performers in the global macro space in recent years during a pe-riod when many other macro funds have struggled to generate returns.
Since inception at the end of 2010, the Gemsstock fund has achieved an annualised return of more than 15% – and has contin-ued to deliver strong performance at a time when the fund’s size has increased signifi cantly, from less
than $100 million at the start of 2014 to more than $800 million as at the end of April.
From launch the fund’s total compound net return to investors is now more than 150%, making it one of the top-performing global macro players during a multi-year period that has seen disappointing performance from a number of well-known macro funds. Over the same period, the EuroHedge macro index has delivered a median com-pound net return of just 10%.
The fund’s performance over the past couple of years has been espe-cially impressive, returning almost 20% in 2016 against a median re-turn for the EuroHedge macro index of just 1% – after having returned some 12.5% in 2015, in a year when the index was up by only 3.5% – to win a notable back-to-back victory
in the global macro category at the EuroHedge Awards this year.
So far this year, Gemsstock has continued to outperform the major-ity of its peers in the macro space – gaining just over 4% to the end of April, with the EuroHedge macro median index being down by just over 1% over the same four-month period, for a rolling 12-month re-turn of 24%.
The reopening will take the fund’s assets under management to around $1.2 billion at a time when the managers are seeing increas-ingly attractive opportunities across global fi nancial markets.
Gemsstock co-founder Breach was formerly the head of re-search at UBS Brunswick in Russia, while Read previously worked as a portfolio manager at Moore Capital and GLG.
ADMINISTRATOR SURVEYMarket leader Citco still dominantin consolidating fund admin space
»5-6 »7-20
PARIS 2017: FULL REPORTConfi dence and caution blend inthe air at this year’s Paris Summit
European and global equity long/short managers are generating strong returns as world markets continue to shrug off growing po-litical and economic risks in the US, Europe and Asia – with a number of leading Europe-based funds showing robust double-digit returns for the year so far.
Nicolas Walewski’s Alken Capital One fund was among the star per-formers in the fi rst four months of the year, up by 28.22% through the end of April – while former Sloane Robinson man Rupert Dyson’s Edale Europe fund returned 23.22% and the Rhenman Healthcare Equity Long/Short fund also gained more than 22% to the end of April.
Former Goldman Sachs man-ager Charles Elliott’s Infl ection Point Investments was up by just under 20% for the fi rst four months, while Habrok had risen 18.58% by the end of April.
Among the largest long/short fi rms in Europe, Nicolai Tangen’s
EuroHedgeW W W . E U R O H E D G E . C O MVOLUME 20 ISSUE 5 MAY 2017
Top-performing London-based Gemsstock global macro fund reopens for $400 million as opportunities increase
Nicolas Walewski Nicolai Tangen
01_EH_0517_Front.indd 1 26/05/2017 11:46
The new global macro fund Rafi-ki, spearheaded by former Credit Suisse managing directors Lucas Kiely and Charles Firth, launched in April with the majority of its initial capital from institutional investors, sources have told AsiaHedge.
It was reported earlier that Ste-ven Englander, the former head of G10 currency strategy at Citi, will join the team by the end of June as head of research and strat-egy based in New York.
The group started with four prime brokers, namely Credit Sui-
sse, Morgan Stanley, Goldman Sachs and JP Morgan. Rafi ki’s investment strategy uses deriva-tives, including options and futures, to express the team’s investing views tied to global
macro themes. Kiely, the group’s CIO, was pre-
viously head of cross-market trad-ing at Credit Suisse, where he had worked since 2010, while Firth was former Asia-Pacifi c head of equity structuring at the bank – having previously worked at Bar-clays Capital and UBS.
The other senior executives at the fi rm include Mariana Ibra-him, formerly of multi-manager group PAAMCO who is in charge of investor relations, and former Barclays Capital Asia executive Brenton Battenfeld.
Auroville Investment Manage-ment, the new hedge fund fi rm founded by former Tybourne Cap-ital managing director and sector head Amar Anand, has gone live with an impressive investment and business team focused on rep-licating the success of Anand’s for-mer employer.
Tybourne, a multi-billion dollar hedge fund led by ex-Lone Pine manager Eashwar Krishnan, is one of the most successful long/short equity funds to launch in Asia in recent years.
The new Hong Kong-based Auroville group, which focuses mainly on consumer, fi nancial and technology/TMT stocks, soft-launched in April with about $15
million in capital, mostly coming from Anand himself.
The team’s strong line-up of tal-ent and the affi nity with Tybourne have stirred a signifi cant buzz among allocators and the fi rm is already understood to have attracted a strong pipeline of com-mitments of around $300-500 million.
New Asian launches have had a diffi cult time raising money in recent months given the diffi cult and uncer-tain market conditions. While equity markets have rallied this year, considerable uncer-tainty remains over an array of global eco-nomic and political concerns.
The strong backing for the group is evident from its line-up of prime brokers. AsiaHedge has learnt that Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch will provide prime broking services to the new manager while Credit Suisse, JP Morgan, Deutsche Bank and Citi are ISDA counterparties.
The pool of talent that Anand has gathered at Auroville makes
it one of the more prom-ising and exciting
new managers to have emerged from the region so far this year.
The team includes Ter-
ence Khoo, former portfolio manager
at Amundi and Sofaer Global Research
in Hong Kong; Jim Bao, ex-PM at Hillhouse; Marc Chalfi n, a 16-year veteran of long/short equity strate-
gies at Lioneye/Healthcore/Brah-man Capital/Knott Partners; Mona Gao, the fi rm’s managing director and most recently the co-CFO and head of business development at Jumei, the fourth largest online marketplace in China; and David Richard Wills, the former head of Asia trading at Och-Ziff, who heads Auroville’s trading desk.
It is understood that the fi rm will have a team of 12 people when a former Goldman Sachs executive joins Auroville next month as its new COO.
The team will pursue an invest-ing strategy similar to that which Anand successfully deployed for fi ve years at Tybourne until his departure late last year. At Tybourne, Anand helped Krishnan to invest in various sectors includ-ing fi nancial services, media, tele-com and industrial stocks. But unlike Tybourne, which invests globally, Auroville will focus most-ly on opportunities across Asia.
Ex-Tybourne MD Anand leads top-tier team at Auroville
PRIME BROKERAGE SURVEYThe latest mandate and asset shareanalysis for Asia-Pacifi c’s top PBs
»11-13
VALUE IN ILLIQUID BONDSSanchi Value fi nds price anomalies with its science-backed mindset
POTENTIAL FOR INCUBATIONEuropean bank Degroof Petercam sees signifi cant opportunity in Asia
»8-9»7
2 Editorial Navigating uncertainties
3-5 News Sloane Robinson fl ies on big Japan bets. Simmons & Simmons launches web start-up resource. Kam’s Complus macro scales assets to $1.7bn. Neutron selects solid stocks to lift returns. Athos ‘closes’ fl agship as fi rm AUM hits $425m. PruLev macro fund passes $100 million on 30% YTD gains. Hong Kong’s SFC commits to swifter supervisory approach. Marvelstone unveils fi rst robo adviser in Singapore. EFA bolsters team with senior hirings. Monsoon India up 4.2% in April. OPIM, Legend Arb join forces to launch iron ore-focused vehicle. Yang’s Anatole builds traction with outstanding fi rst year. Backbone Asia gains as regional index derivative strategies deliver
14-19 Performance India managers sustain outperformance against Asia peers. Special situations ideas continue to power Karma Star in India. Australia gaming operator Donaco pays for PM Capital. Platinum Asia makes hay in China
CONTENTS
W W W . A S I A H E D G E . C O M
EuroHedgeAsiaHedgeInvestHedge
Absolute Return + Alpha
AbsoluteUCITS
VOLUME 17 ISSUE 7 MAY 2017
Lucas Kiely
Amar Anand
Charles Firth
Former CS duo underway with Rafi ki global macro fund
01_AH_0517_news.indd 1 19/05/2017 10:49
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