Asia asset managers change work rules amid coronavirus pandemic

Asian fund management firms have made key operational changes, including splitting up teams to minimise contact between employees, relocating them to other branches, and holding online meetings, to deal with the coronavirus pandemic.

There are now over 290,000 infections worldwide and almost 13,000 deaths from Covid-19, the disease caused by the coronavirus, according to latest figures from the World Health Organisation...

Big deals in limbo spell ‘arb-ageddon’ for hedge funds

Hedge funds that bet on the completion of pending mergers and acquisitions are nursing heavy losses, as the coronavirus outbreak wreaks havoc in global markets and puts many deals in jeopardy...

FCA rules out short selling ban as hedge funds stack up bearish bets

The UK’s Financial Conduct Authority last night (23 March) ruled out a ban on short selling, as many major hedge fund firms continue to weigh in with bearish bets to capitalise on the recent global market turmoil.

The UK market watchdog said on Monday there is “no evidence” that short selling – a core component of most hedge fund strategies – had driven recent market falls, adding aggregate net short selling activity is low as a percentage of total market activity and has decreased in recent days...

The Fastest Quants Are Making Money From the Wall Street Mayhem

In the fastest stock-market correction in history, it helps to be among the fastest hedge funds around.

Short-term trend followers are poised for their best quarter since 2016, riding wild swings across equities, bonds and commodities as volatility notches records and liquidity collapses.

The quants -- a subset of commodity trading advisors -- can model multi-asset trends at a breakneck pace and use futures contracts to trade them over the course of a few days. In need-for-speed markets lashed by the spreading coronavirus, this breed of rules-based trading is paying off...

Analysts Point Finger at ‘Risk Parity’ Strategy in Market Rout

Analysts point finger at 'risk paritystrategy in market rout. Funds are designed to perform well at all times but some say they exacerbate sell-...

Bruised Hedge Funds Ask Clients for Fresh Cash to Buy the Dip

First they lost money. Now hedge funds want clients to risk even more cash on the bets that caused the pain.

LMR Partners, Citadel, Baupost Group and Capital Four Management are trying to persuade clients to inject money into their funds after taking a hit in the coronavirus-fueled market turmoil. Capula Investment Management has had talks with some investors as it considers raising fresh capital, according to people familiar with the matter.

Hedge funds are marketing this month’s sell-off as a once-in-a lifetime opportunity to take advantage of unprecedented price dislocations across stocks, bonds and commodities...

A lifeline for emerging hedge funds

Emerging hedge funds risk getting lost in the melee as large investment banks streamline their service offerings. Banks are tightening their fees and raising restrictions on clients which is leading to smaller and start-up hedge funds being left in the lurch.

In response to this quandary, the market is seeing a shift towards firms leveraging the services of specialist third party administrators who enable emerging hedge funds to cost-effectively scale their back-office functions while maintaining operational agility...

Hedge Funds That Did Not Invest In Tech Stand To Lose Big As Traders Forced To Work Remotely

With the increased volatility on the market, there is an amplified focus on trading technology. Chris Jenkins, managing director at trading execution platform Tora provides the following insights on the different models being used by firms as traders are being forced to work from home, adding potential latency into functions and still cope with unprecedented activity...

Hedge Funds Hit by Losses in ‘Basis Trade’

A wide swath of hedge funds was hit by the recent unwinding of the so-called basis trade last week.

The basis trade is a long-running investment that seeks to exploit pricing gaps between Treasury securities and futures. It has been pitched as a stable, reliable source of returns with low volatility. While most of the funds have since rallied, their sudden and significant declines last week show there are heightened risks during times of market volatility...