Hedge funds ready to close half of the worst losses in five years


Hedge funds, asset managers $of 2.86 trillion, ready to close half of the worst losses since 2011. Their performance was negatively affected following the devaluation of the RMB stock market crash in January, as well as a negative background around the referendum on the British exit from the EU, according to Bloomberg.

“This half year has been marked by numerous internal shocks, especially when you consider that it was preceded by a few comfortable years during which managers were placed on the growing markets”, — quotes Agency review of Ronan Cosgrave of California investime Pacific Alternative Asset Management specializing in investing in hedge funds.

On June 28, hedge funds suffered losses at the level of 1.8%, according to global index of Hedge Fund Research. This is the worst performance since 2011, when losses for the half year amounted to 2.1%. For Friday, July 1, the company will report to investors on its final figures for June.

Hedge Fund Pershing Square Capital Management American financier bill Ekman showed negative returns in the year to June (-21%), follows from the data on the website of the Fund. Negative yield one of the largest hedge funds, Lansdowne Partners of Europe on 24 June was -14% (the notice to the investors), Developed Markets Strategic Investment Fund is -16%.

For hedge funds, the year began with losses in January amounted to 2.8% — a consequence of the devaluation of the yuan that triggered the collapse of the first Chinese, and then world stock indices. As a result of January 7, people’s Bank of China the Chinese currency fell to the lowest since March 2011.

Diversified funds suffered a serious setback in February, because due to their applied risk management standards, they had to sell risky assets, which put additional downward pressure on their prices. Then the Manager Crispin Odei described market conditions as “battlefield” — the volatility of his portfolio was 5% per day. In April, the founder of hedge Fund Third Point Daniel Loeb in a letter to customers said that business is only beginning to recover from the “catastrophic” results, which he encountered for the first time since the 1990s. the Fund is Nevsky Capital, founded by Martin Taylor and Nick Barnes, and WCG Management Barry Wittlin were closed. Brevan Howard Asset Management and Tudor Investment Corp. faced with the outflow of investment.

Managers of hedge funds, selling its predictive examination of high prices, have difficulties with the withdrawal of its business from areas of instability in terms of volatility in the equity markets, sales in commodity markets and monetary policy mixed.

Outflows from hedge funds amounted to $15 billion in January-March — the strongest since financial crisis (second quarter of 2009, the outflow was $43 billion) and total assets under management decreased during the reporting period, up to $2.86 trillion from $2.9 trillion. The number of hedge funds continued to shrink in January–March amid the worsening profitability due to the high volatility of shares and commodities. In the first quarter was eliminated 291 hedge Fund, has opened 206, according to Hedge Fund Research. The number of closed funds exceeded the number of new second quarter in a row. The world’s hedge funds in the coming year, may lose about a quarter of the assets under their management, against the background of deteriorating results, predicts the President of the Blackstone Group Tony James.