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HFObserver aggregates on a daily basis the most relevant news related to hedge funds/alternative investment firms and people moves.

Here is our news from approximately the last week.

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Citadel turns 2020 profit after spotting virus risk early

Citadel, the Chicago-based hedge fund giant led by billionaire Ken Griffin, has so far weathered the coronavirus market storm well, turning a slight profit in its flagship Wellington hedge fund for the year through Monday, according to a person familiar with the situation.

The fund, which practices a so-called multi-strategy array of bets on stocks, bonds, commodities and other securities using teams of traders, was as of Friday down 5.25% for March, the person said...

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...

Citadel Securities accused of ‘aggression’ and ‘hypocrisy’ over recruitment practices

If you feel like a new algorithmic trading job at a high frequency trading (HFT) operation at this point in time, don't presume swapping roles will be easy. Virus or not, HFT funds can be fussy about their employees; Citadel Securities stands accused of being more so than most.

GSA Capital, a systematic macro hedge fund with $7.5bn under management, has brought a counterclaim in the London high court against accusations that it asked Vedat Cologlu, a former market maker at Citadel Securities to divulge proprietary information when it attempted to poach him last year.

Ronin Capital assets auctioned

Assets of Chicago trading firm Ronin Capital were auctioned off Friday, futures exchange operator CME Group said.

Ronin, which traded at CME, "was unable to meet its capital requirements going forward," CME said in a statement.

Trading firms sometimes fail when financial markets become too volatile...

BlackRock, Nuveen Unwind Leveraged Muni Trades Roiled by Havoc

Large municipal-bond funds run by BlackRock Inc., Nuveen, Pacific Investment Management Co. and Invesco Ltd. are unwinding a leveraged investment strategy that backfired this month, contributing to the flood of debt that’s been unloaded during a record-setting sell-off.

Last week, fund companies began liquidating about 75 so-called tender-option bond trusts holding $1.2 billion worth of state and local government debt, according to data compiled by Bloomberg. The trusts issue floating-rate notes to money-market funds and use the cash to buy higher-yielding long-term bonds. Mutual funds seek to pocket...

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...

Renaissance Equity Hedge Fund Down 24% This Year on March Slide

Renaissance Technologies’s quantitative equity hedge fund is down 24% so far this year after posting a steep loss in the first three weeks of the month.

The Renaissance Institutional Equities Fund, which only trades U.S.-listed stocks that its computer models expect to rise, posted a decline of about 18% this month through March 20, according to an investor document seen by Bloomberg...

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-...

Hedge Fund Schonfeld Hit as Investors Slash Risk

Schonfeld Strategic Advisors, a prominent computer-driven hedge fund manager, has recorded double-digit losses this year, as hedge funds...

D.E. Shaw Raises $2 Billion for Flagship Hedge Fund

D.E. Shaw, one of the world’s biggest hedge funds, has raised $2 billion in commitments after opening its doors to new capital for the first time in seven years.

The New York-based firm turned away additional investor interest, capping how much it’ll accept at $2 billion, according to a person briefed on the matter. That’s the amount it believes it can put into attractive investments in current turbulent markets, the person said, asking not to be identified because the details are private...