Sukh Bachal’s Post

Great to see a potential future need to scale down becoming an upfront consideration. If you have more capacity or functionality than you need it definitely makes sense to turn it off. Will be both cost beneficial and also reduce a firms environmental footprint. Ongoing management of capacity (down as well as up) is a practice that members of Sustainable Trading are working to implement. Fantastic to see it being put into practice and being rolled out to clients.

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.

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

🚨 Citadel to Return $7 Billion of Profit to Hedge Fund Clients 🚨 Citadel has announced its intention to give back approximately $7 billion to clients, a decision prompted by the substantial double-digit gains witnessed in its multistrategy hedge funds over the last two years, elevating assets to an impressive $63 billion. The flagship Wellington fund of Citadel, renowned for its resilience and agility, achieved an impressive 15% gain in November, concluding a remarkable 38% increase in 2022. In an industry where stability and consistent returns are highly valued, Citadel's performance distinguishes itself as an outlier among its multistrategy counterparts. The explosive growth of multimanager hedge funds, exemplified by Citadel, has attracted investors seeking relative stability and dependable returns. These funds distribute their resources across various teams operating independently in diverse markets and strategies. While many multistrategy peers have reported single-digit returns this year, Citadel's success remains a testament to its distinctive approach and market insight. The capital return, scheduled for December and January, positions Citadel to commence the new year with $58 billion in assets. This strategic move aligns with the common practice among hedge fund managers to return capital, preventing funds from becoming overly large and ensuring the capacity to make profitable investments in specific asset classes. #hedgefunds #hedgefund #quantitativefinance #trading #recruitment #newyork

I found this table of 2023 hedge fund performance in a Bloomberg article on Haider macro hedge fund (there’s a paywall but basically it was -43.5% in 2023 after a +193% gain last year). Decided to add in the performance of low-cost, diversified passive funds in the US for good measure (disclaimer: not saying these are suitable in themselves for anyone). I suspect that if one had a similar 2022 table, the rankings would be quite different. As for hedge fund return data “over the long term” - there is quite a lot of survivorship bias. We like to think that we ourselves or some star managers we pay lots to or can access preferentially are better, faster and smarter than the market, and that the eye-watering returns are not just luck. There probably are some, but I’m skeptical about how consistently they can outperform over accumulation periods for retirement and other goals, and whether I am able to correctly pick them consistently. The Bloomberg article https://lnkd.in/ga_wWwjj

Are you wondering what is driving your performance? Discover how a 'Tiger Cub' hedge fund, with $Billions under management, was seeking a platform to better manage factor exposures across its portfolio. With institutional allocators emphasizing sophisticated factor criteria, the fund needed a solution that could provide an in-depth view of the factors driving their portfolio performance. Find out how in this case study: #alphastocks #fundamentalinvesting #custombaskets #riskmanagement #riskanalysis #portfoliooptimization

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

An article from Bloomberg underscores the shifting dynamics within hedge fund management, as illustrated by the recent developments at ExodusPoint Capital Management, LP. Despite an auspicious debut that set records, the fund, helmed by Michael Gelband, has confronted a substantial exodus of capital for the second year running, amounting to a staggering $1 billion in 2023 alone. This continued withdrawal suggests a pronounced shift in investor sentiment, possibly swayed by the comparative allure of secure, high-yield treasuries and the underwhelming performance of high-fee hedge funds. ExodusPoint's response has been to revitalize its operations through strategic staffing, aiming to bolster its equities division and realign itself with the industry frontrunners. The scenario at ExodusPoint highlights a critical juncture for investors and fund managers alike, as they navigate the delicate balance between innovation and stability in an evolving market. The key to longevity, it seems, lies in adaptability and the readiness to reinvent strategy when traditional approaches falter. How do industry professionals perceive the shifts in hedge fund investments in light of such transitions? Are high-fee multi-strategy hedge funds still viable in the face of rising treasury yields and growing investor skepticism? Join the conversation and share your insights below! #HedgeFunds #InvestorSentiment #FinancialMarkets #AssetManagement #WealthManagement #ExodusPoint #StrategicInvesting #FINTRX https://lnkd.in/ddDi3-aQ

𝗕𝗿𝗶𝗱𝗴𝗲𝘄𝗮𝘁𝗲𝗿, 𝗥𝗼𝗸𝗼𝘀 𝗹𝗲𝗮𝗱 𝗵𝗲𝗱𝗴𝗲 𝗳𝘂𝗻𝗱 𝗴𝗮𝗶𝗻𝘀 𝗶𝗻 𝗤𝟭 📈 During the initial quarter, 𝗕𝗿𝗶𝗱𝗴𝗲𝘄𝗮𝘁𝗲𝗿 𝗔𝘀𝘀𝗼𝗰𝗶𝗮𝘁𝗲𝘀 and 𝗥𝗼𝗸𝗼𝘀 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 Management achieved notable successes as their hedge funds recorded substantial returns in the high double digits. Bridgewater's Pure Alpha strategy saw a gain of 15.9%, while Rokos' macro hedge fund saw an increase of 12.5%. On a global scale, hedge funds on average grew by 4.95%, with macro and crypto trading emerging as the most lucrative strategies. The HFR Macro Index, which tracks macro hedge funds, witnessed its strongest quarterly performance in over twenty years, surging by approximately 7%. Additionally, the crypto index of the firm experienced a remarkable ascent of over 19%. Multi-strategy firms like 𝗦𝗰𝗵𝗼𝗻𝗳𝗲𝗹𝗱, 𝗖𝗶𝘁𝗮𝗱𝗲𝗹, and 𝗣𝗼𝗶𝗻𝘁𝟳𝟮 also exhibited robust performances in the first quarter. Nevertheless, the past couple of years have posed challenges for new hedge fund launches due to intensified competition and stricter regulations. #hedgefund #alphastrategy #macro #growth #crypto #multistrategy Seán Sweeney Desmond Hartigan M.A. Shane Ferris CW Talent Solutions

Smaller and younger multi-strat funds are having a rough year. Its prohibitively expensive for them to replicate the tech, risk and talent scale that Citadel, Millennium, P72, etc have. In the last two years I've had MANY discussions with smaller, younger multi-strats about how hard it is to find and retain good PMs. And very few have the tooling to monitor and improve PMs when they struggle. So they're always short-staffed and chasing marginal talent. A friend at one multi-strat in Asia told me the only way for them to compete with the big platforms is on culture. They have to find PMs that don't want the pressure and lifestyle of a larger pod shop. I've heard the same from newer US multi-strats in interviews etc. Does that sound like a talent edge? Or having the necessary platform in place to compete? Richard Waddington and I were talking about multi-strats recently and discussed the possibility that one of these smaller, newer firms has a high profile blow up that acts as a black eye for the strategy. This Financial Times data isn't that, but it certainly paints a picture of how it could happen. #hedgefunds #riskmanagement #investing