Hedge Funds Pay Up in U.S. to Poach From Rivals Stung by Turmoil

Izzy Englander sent his Millennium Management staff to work from home in early March. Since then, about 100 people have quietly joined the $42 billion hedge fund.

He’s not the only one snapping up talent as a deadly pandemic roils markets and upends offices. Dmitry Balyasny has recruited 12 portfolio managers at his eponymous firm this year, and Michael Gelband’s ExodusPoint Capital has added 20, according to people with knowledge of the matter. Across the industry, hiring by multimanager shops is on pace with last year’s robust level.

The spree by such firms, which...

Hedge Funds Plan Extreme Lengths to Protect Staff After Lockdown

One hedge fund may shut an office in Asia permanently and have employees work from home. Another may dramatically shrink its Manhattan headquarters.

Meanwhile, industry titan Millennium Management has a 50-point checklist for reopening offices that includes air filtration and an application process for staff who want to come in. Around town, rivals are discussing procuring infrared temperature scanners for entryways and plexiglass dividers to slide between desks...

Hedge Funds Target France as Short-selling Bans Lifted

A cluster of big name hedge funds have started betting against French companies, moving in after the lifting of a short-selling ban imposed earlier this year to calm financial markets, an analysis of regulatory filings showed.

France joined Italy, Spain, Belgium, Austria and Greece in dropping short-selling bans last week. They had banned the practice for many stocks two months ago to curb extreme stock market volatility caused by economic uncertainty that has resulted from the coronavirus lockdowns...

Insurers continue to reduce hedge fund exposures

For a fourth straight year, the US insurance industry has reduced its hedge fund investments, by USD2.6 billion in 2019 to USD11.9 billion, with the property/casualty segment reporting a year-over-year reduction of 22 per cent, the largest among the major industry segments, according to a new AM Best special report.

The Best’s Special Report, titled “Insurers Continue to Reduce Hedge Fund Exposures,” states that the continued pullback leaves the property/casualty segment with USD6.3 billion of hedge fund investments. The life/annuity segment (L/A) saw a fourth straight year of reductions of more than 10 per cent (11.9 per cent in 2019 to USD5.1 billion)...

Eleven Hedge Fund Traders Scored Big During Worst of the Crisis

A small group of hedge funds managed to overcome the fast and furious market rout in March as the coronavirus pandemic sent countries around the world into a lockdown. For them, the sell-off brought riches that some haven’t seen since … well, since the last financial crisis. Notably, these profits were derived from a wide variety of investment approaches, from macro and credit to long/short equity and oil.

The crisis beaters were the exceptions.

Most hedge funds, including those run by industry titans such as Ray Dalio and Michael Hintze, failed in their mission to protect investors from the market turmoil. Three in every four hedge funds lost money, with some down as much as 40% in March, according to data compiled by Bloomberg...

Here are some of the March winners...