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Multi-PM platforms flat as turmoil begins
Flat performance by leading multi-strategy players during the market turmoil unleashed by the Trump tariffs announced on “Liberation Day” has been interpreted positively against the backdrop of steep market falls and wider volatility.
Schonfeld’s Strategic Partners and Fundamental Equity funds rose 0.2% and 1.1%, respectively, last week, according to Bloomberg. Ken Griffin’s Citadel was down 0.4% for the month to 4 April, Millennium down 0.7% and Balyasny Asset Management roughly flat.
Renaissance Technologies declines
The Renaissance Institutional Equities Fund lost about 8% in the market ruptures last week, down 8% for the month to 4 April but still up 4.4% YTD, a sign of quant losses amid the uncertainty.
Hedge funds can navigate volatility: UBS
UBS’s CIO office says hedge fund strategies are well-placed to navigate the current market flux. “By dynamically adapting to macro shifts, hedge fund strategies like discretionary macro, equity market neutral, select relative-value or multi-strategy can cushion portfolios in down markets,” according to a new note.
“We believe that the alpha orientation and conservative posture of multistrategy funds will mean near-term performance is likely to be largely insulated from market volatility. Similarly, we expect that macro strategies will have generated positive outcomes amid the volatility.”
CTAs decline in the turmoil
It’s been a tough start to April for CTAs and other trend-followers, according to the Societe Generale trackers. The SG Trend Index of ten large trend-followers is down 5.6% in the month to 7 April, putting it down 10% YTD. The CTA tracker is doing slightly better, down 5.1% for the month and 7.5% for the year.
Hedge funds meeting margin calls during market stress: Bank of England committee
See AFI’s round-up of the key points relevant to hedge funds and recent market volatility during the UK’s Financial Policy Meetings on 4 and 8 April – which provide a window on the global trends and trades at play during the current market volatility. Read more.