Interesting article from earlier this week. Some quotes:
- Largest funds control 90% of industry assets; many are in red
- The eight months through August were ugly: Bridgewater Associates’ flagship fund lost 18.6%; Renaissance Institutional Equities was down 13%; Winton’s main fund slumped about 19%; Hintze’s CQS hedge funds fell 42.5%; while Lansdowne Developed Markets Fund was down almost 22%.
- Not all large hedge funds have disappointed. Multi-strategy firms such as Citadel, Balyasny Asset Management and Millennium Management, which rely on dozens of traders to generate profits, are having one of their best years.
Seems that filming your meetings and having public critique sessions doesn't always deliver outperformance. I'm missing Matt Levine's comments, he'd have fun with this.
Wow, wtf happened to CQS?
A few things apparently. Bets on energy industry and on asset-backed securities soured in March and April, in the CQS Directional Opportunities Fund and CQS ABS Fund respectively. The CQS Diversified Fund lost big time too, but not sure what the main driver was. You can read it here https://www.institutionalinvestor.com/article/b1ljxltjlm045n/Michael-Hi…
think they sold a bunch of CDS's amongst other things as well.
What do the numbers look like for the outperformers? You put the laggards % loss but not those doing well. Would like to see both sides
Agreed.
I almost feel like for these big single-manager funds (Bridgewater, RIEF, etc.), the fund performance doesn't really matter, especially over one year. Their business model is like a big asset management company. The LP clients will stick with them because the LP managers can tell their boards that they are invested in the big players that everyone knows about, and keep their own jobs that way.
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