AQR’s Longest-Running Fund Has a Record Year With 43.5% Gain (Bloomberg)
AQR Capital Management’s longest-running strategy had its best year since its inception in 1998, posting a gain of 43.5% net of fees, as a range of its funds achieved record performance. Before fees, the Absolute Return strategy surged 55%, according to a person with knowledge of the matter who asked not to be identified discussing performance. At least a dozen AQR funds had record years, including a strategy dedicated to value that rose 44.7% net of fees last year, and a Style Premia Alternative Fund that climbed 30.6% by the same measure. AQR’s global macro strategy also had its best year, with a 42% increase.
Brevan Howard’s Biggest Hedge Funds Gain As Much As 28% In 2022 (FA-Mag.com)
Brevan Howard Asset Management’s two biggest hedge funds posted double-digit returns last year, joining peers making the most out of soaring interest rates. The $10 billion Brevan Howard Master fund gained 20%, while the $12 billion Alpha Strategies fund recorded its best ever year with a 28% surge, according to people with knowledge of the matter, who asked not to be identified because the details are private. A spokesman for the Jersey, Channel Islands-based investment firm declined to comment.
Crypto Hedge Fund Three Arrows Capital Liquidators Demand Documents via Twitter (Strait Times)
NEW YORK – Three Arrows Capital (3AC) co-founders Zhu Su and Kyle Davies have received formal demands for information related to the downfall of their crypto hedge fund in an unorthodox forum: Twitter. Advisers working to liquidate the fund tagged Mr Zhu and Mr Davies in tweets demanding the production of sensitive documents on Thursday. The move is necessary because the pair’s whereabouts are unknown and they are not fully cooperating with 3AC’s unwinding, the advisers have said.
Image by Sergei Tokmakov Terms.Law from Pixabay
All Quiet on the Launches and Closures Front (Hedge Nordic)
Stockholm (HedgeNordic) – Tough market conditions likely present more challenges for managers to launch new hedge funds. According to HFR, new hedge fund launches in the third quarter of 2022 edged lower compared to the prior quarter, reaching the lowest level since the final quarter of 2008. The level of fund liquidations also remained historically low. An estimated 71 hedge funds were launched in the third quarter of 2022, down from the estimated 80 launches in the second quarter. The third quarter’s number of new launches represents the lowest launch rate since the depths of the Global Financial Crisis in the final quarter of 2008, which saw only 56 new fund launches. The environment was challenging for new and recently launched funds amid a decline in overall risk tolerance, according to Kenneth J. Heinz, President of HFR.
New Hedge Fund Launches Hit Historical Low as Investors Position for Recession (Opalesque.com)
Opalesque Industry Update – New hedge fund launches in 3Q 2022 ticked lower than the prior quarter, reaching the lowest level since 4Q 2008 as investors navigated an uncertain and volatile tension between generational inflation and increased likelihood of an economic recession. Meanwhile, the HFRI Asset Weighted Composite Index gained +0.5 percent YTD through November, indicating larger managers have outperformed smaller funds, increasing asset concentration and contributing to a challenging new launch environment, according to the latest HFR Market Microstructure Report, released today by HFR.
