Algo Capital Group’s Post

Billionaire Chris Rokos’s hedge fund cemented its position as one of the best-performing macro money pools so far this year, with year-to-date gains now reaching about 20%. His hedge fund, which manages more than $17 billion, gained around 6% in April, bolstering the returns, a person familiar with the matter said, asking not to be identified discussing performance. Rokos Macro Hedge Fund Returns Source: Investor document and Bloomberg reporting Note: 2024 returns are through April Rokos’s success comes amid a wild year for macro traders so far this year. Many of them found themselves wrong-footed by a broad recalibration in interest-rate expectations, which led to a selloff in US bonds. Those expecting aggressive reductions by the Federal Reserve were disappointed, while Rokos, who’s known for placing high conviction leveraged bets, profited from the market U-turn. The first quarter saw a wide range of returns across macro peers. Performance among global macro funds was the most widely dispersed of any strategy during the period, according to data from fund administrator Citco, with results for tracked hedge funds varying between -10% to north of +20%. Rokos, whose net worth is estimated at $1.8 billion by the Bloomberg Billionaires Index, runs one of the biggest macro hedge funds in the world. He co-founded  Brevan Howard Asset Management in 2002 before starting his own operation in 2015.

Hedge fund replication is getting mainstream with State Street Global Advisors announcing they are launching a hedge fund replication product shortly. While these sorts of products can be viewed as direct competitors to our work, the entire replication industry is still tiny in comparison to the 5tln AUM hedge fund industry suggesting there is *a lot* of room for everyone involved to gather assets leveraging these techniques. SSGA's entrance just further highlights how these products are getting increasing attention from the biggest asset managers. Why? Because clients don't want to have to keep paying 2&20 fees (or worse). https://lnkd.in/ewM9YKsv

Point72, Citadel and Millennium lead H1 hedge fund performance Steve Cohen’s Point72 Ken Griffin’s Citadel and Izzy Englander’s Millennium Management emerged as the top performers in the first six months of 2024, marking a strong recovery for major Wall Street hedge funds after a sluggish 2023, according to a report by Business Insider. Figures obtained by Business Insider reveal that Point72, the Connecticut-based hedge fund managed by Cohen, is up 8.7% year-to-date. Citadel and Millennium have also posted significant gains, with the former’s Tactical Trading Fund led the pack with an impressive 13.7% return in the first six months, according to unnamed sources. The firm’s flagship Wellington fund meanwhile rose by 8.1%, while Millennium’s flagship fund increased by 6.9%. Despite the gains, top-tier hedge funds still lagged the S&P 500 index, which rose more than 16% during the same period. Last year, Cohen, Griffin and Englander also struggled to keep pace with the S&P 500 and the Nasdaq. Overall, hedge funds reported an average gain of 5.2% by the end of May, according to Hedge Fund Research. #hedgefund #returns #multistrategy

Hedge Fund Millennium in Talks to Raise Billions of Dollars in New Capital : firm is looking to raise about 10% of its current assets of its $68 billion in assets as the multistrategy hedge fund giant looks to bolster its ability to access capital when needed : talks with investors to get their commitments in a so-called draw-down fund that will allow Millennium to call the cash at will : Millennium previously raised $14 billion in a similar vehicle. It has called about 80% of that capital, including $3 billion in June : Millennium, Citadel, Point72 Asset Management and Balyasny Asset Management have all slammed their doors on new cash despite rampant demand for their funds : Hedge fund plans to call the cash as needed in the future 

NEW UNLIMITED BLOG - Long Time Allocators Remember When Fund Picking Worked, But It Is Possible Those Days Are In The Rearview We’ve written several pieces about hedge fund persistence and the potential benefits of hedge fund indexation over the last few years (Elusive Persistence). Our conclusion is random chance is approximately as effective as allocators’ at selecting a hedge fund portfolio. The research supports that allocators could generate a more attractive return by investing in an index of hedge funds than an actively managed portfolio, particularly if they can access those returns with lower fees. These conclusions were drawn based on rigorous analysis of the last decade of performance, but some folks who have allocated to hedge funds for a few decades remain skeptical about the conclusion. They remember a time when there was enough divergence between funds that selection based on attributes like historical returns or Sharpe ratio could result in an attractive portfolio return. And they are right - there are indications that during the golden age of the hedge fund industry picking worked for a targeted period, albeit relatively short. Unfortunately, that may be an artifact of the past, as the surge of new funds compressed performance dispersion. Read more: https://lnkd.in/eh7d7SmJ

"Multi-strategy hedge funds have become a victim of their own success, as bloated assets under management and declining performance for many have made raising new money more difficult in recent months. It has been a change of fortunes for what was once the hottest sector within the $4tn hedge fund industry, with $30bn flowing out of multi-strategy funds in the year to June — the first outflows since 2016 — according to a September Goldman Sachs report.... ...The current multi-strategy hedge fund space shows the dominance of large players compared with the rest of the sector. The top four multi-strategy hedge funds including Millennium, Citadel, DE Shaw, and Point72 manage almost $230bn in assets. This is nearly 65% of the total assets under management at multi-strategy hedge funds...." https://t.co/M9OnGyx4h6

Read the press release on the Unlimited Hedge Fund Barometer - A Guide to Performance and Positioning of The Global Hedge Fund Industry. #hedgefunds #alpha #alternativestrategies https://lnkd.in/eVk96xVA

A deep dive look at #hedgefunds allocating to, well, other hedge funds. With thoughts from Paloma, Boothbay and many others on this continuing trend that is both old and new. This story is part our hedge fund special report that you can access here: https://lnkd.in/emRgkviv https://lnkd.in/e35qvQ3p

I wanted to share an interesting paper that our Investment Strategy team wrote on hedge funds. It discusses the three drivers of hedge fund performance and what that means for today.

Alieus Hedge Fund Raises $1.5 Million in Just 15 Days: Mr. Ashish Jain, Founder and CEO of Alieus Hedge Fund Alieus Hedge Fund Raises $1.5 Million in Just 15 Days Since Inception on 7th September 2024, Breaking All Records. Founder and CEO, Mr. Ashish Jain, Leads Groundbreaking Achievement. London – … Continue reading → #Business #CommodityMarket #FinancialMarket #India #PersonalFinance