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Bitcoin’s inefficiencies are creating arbitrage trades for crypto hedge funds

Bitcoin’s sustained rally over the past year saw the cryptocurrency roar to a record high of more than USD41,000 in early 2021, with many investors increasingly using it as a hedge against falling real yields and inflation risks stemming from central bank quantitative easing.

But as more hedge fund managers join the digital asset arena, running a range of discretionary and quantitative strategies, the potential for alpha generation “will likely moderate” in the coming months and years, said senior Lyxor Asset Management strategists Jean-Baptiste Berthon and Philippe Ferreira, and hedge fund analyst Pierre Carreyn...

Hedge fund Elliott pulls out of Hong Kong

US hedge fund Elliott Management is closing its Hong Kong office, becoming one of the first large financial institutions to shutter operations in the territory since it entered a period of civil unrest and political tension in 2019.

The activist fund, which was founded in 1977 by billionaire Paul Singer and has launched dozens of campaigns globally, has had a presence in Hong Kong for 15 years. It will move staff based in Hong Kong to its offices in London and Tokyo, which will become its only base in Asia...

China Sovereign Fund Revamps Overseas Investment Committees

China’s $1 trillion sovereign wealth fund is restructuring how its decides on international investments as it tries to boost efficiency and make better progress on a goal of increasing the share of private assets in its global portfolio.

China Investment Corp. formed two committees earlier this month to approve investments in public and non-public assets, replacing bodies at units CIC International and CIC Capital that previously had overlapping responsibility for the process, according to people familiar with the matter. The new structure for overseas investing should provide a clearer mechanism to implement asset allocation strategies, they said, asking not to be identified discussing private matters...

This is how much Edward Eisler is paying his ex-Goldman colleagues at Eisler Capital

As we noted last week, the imminent announcement of bonuses for 2020 doesn't seem to be dissuading some Goldman Sachs managing directors from leaving for Citadel before those bonuses have even been paid. Edward Eisler may not be quite as aggressive as Ken Griffin when it comes to extracting bankers during bonus season, but Eisler certainly likes hiring from Goldman Sachs, and he too is rather generous with it.

Accounts just released for Eisler Capital Management Limited show that the average salary for Eisler's 66 UK employees was £500k ($677k) in the year ended December 2019, down slightly on the £509k average of a year earlier. Like most hedge funds, Eisler Capital Management releases its accounts a year in arrears...

Renaissance Says Losses Should Have Been Expected at Some Point

Quant pioneer Renaissance Technologies LLC sent clients an analysis of its performance and a rationalization of recent deep losses, an unusual move for one of Wall Street’s most secretive firms.

In the letter sent late Friday, the firm said losses of between 20% and 30% in 2020 for its three funds open to outside investors should have been expected at some point during the course of the funds’ histories. The letter partly blamed heightened volatility for the weak performance.

Still, some clients said the letter was short on meaningful explanations...

 

Bridgewater’s Pure Alpha posts first loss in 20 years

Total firm assets decline $14.5bn year over year...

Pine River alumni spin out HK multi-strat fund

Rokos appoints US compliance chief and data head

Marble Arch co-founder returns with new hedge fund

Ex-Jefferies duo to launch quant HF with $250m