Omicron-fuelled volatility deals hedge funds worst monthly return since March 2020

Asia's Tech News Daily

volatility, hedge funds, industry, Capital, stocks

TORONTO: Omicron-fuelled market swings appear to have made November the worst month for global hedge fund performance since the virus first shut down economies at the start of the COVID-19 pandemic.

Hedge funds are down an estimated 1.6% to 2% in November, according to early data from industry research firm PivotalPath, their worst monthly performance since March 2020.

The potential losses are a setback in what has so far been a steady year for performance. The average hedge fund is up 11.4% in the first 10 months of 2021, data from HedgeFund Research (HFR) showed. That compares to 11.8% last year and 10.5% in 2019.

The losses are “quite widespread”, said Robert Sears, chief investment officer of London-based Capital Generation Partners, which invests in hedge funds. “A few of our managers got a little bit of positive performance but I think, in aggregate, it’s going to be down.”

The S&P 500 fell 3.9% from its record high in November as Omicron worries hit stocks in the month’s final days, and notched a nearly 1% loss for the month as a whole. Some areas of the market, however, were harder hit, with the S&P’s energy sector losing 6.2% last month and financials losing 5.9%.

November also saw volatility rise across asset classes, with uncertainty over Federal Reserve monetary policy driving swings in bond and currency markets, as well as stocks.

The market swings wrongfooted some equity-focused funds, which were hit by losses in bearish bets against stocks that unexpectedly rebounded.

Jean Baptiste Berthon, senior strategist at Paris-based Lyxor Asset Management, which invests in hedge funds, said European and U.S. long-short strategies lost around 1.5% to 2% between Nov. 25 and Dec. 1.

Shares of Moderna, for example, which Sears said some hedge funds had bet against, jumped 30% between Nov. 18 and Nov. 30. Prior to Nov. 18, short interest in Moderna amounted to 14.4 million shares, or 4.1% of the float, according to data from S3 Partners.

Computer-driven trend-following hedge funds, meanwhile, suffered a “significant” performance drop of 4% to 5% between Nov. 25 and Dec. 1, with losses in fixed income, commodities and equities, creating a “perfect storm”, said Berthon.

So-called ‘macro’ hedge funds, which bet on macroeconomic trends, lost closer to 2%, mainly from bond positioning, while merger-arbitrage funds, which make calls on deals, were marginally up, he added.

Some hedge funds are likely to pull back on risk this month, in an effort to preserve returns in what has for many been a solid year, Berthon said.

“We’re now three weeks before the end of the year, so it’s unlikely we’ll see funds trying to be heroes and trying to re-instate major play to capture the rebound,” he said.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Ken Tuffin teams up with Francis Mulvihill in NZNBL 3x3

© Provided by SPIN.ph KEN Tuffin will have a new cast with him when the Wellington Saints see action in the New Zealand National Basketball League‘s Schick 3X3 Cup this ... Read more »

Matt Rosser declines Terrafirma offer, enters free agency

© Provided by SPIN.ph TERRAFIRMA guard and former Gilas stalwart Matt Ganuelas Rosser is the latest to test his value as an unrestricted PBA free agent. The 31-year-old Fil-Am refused ... Read more »

Stage ng beauty pageant sa Misamis Oriental nag-apoy matapos koronahan ang nanalo

© Provided by PEP.ph Personal na nasaksihan ni Marco Gumabao ang pagkakaroon ng sunog dahil sa fireworks at confetti sa coronation night ng Miss Kuyamis 2022, sa 9th Kuyamis Festival ng ... Read more »

ILO report says Afghan crisis causing massive job losses

The Associated PressFILE – Workers sit on their wheelbarrows as they wait to be hired on the side of the road in Kabul, Afghanistan, Oct. 8, 2021. More than a ... Read more »

Brianna Kupfer murder: Los Angeles police identify suspected killer as Shawn Laval Smith

© LAPD Police have released new images of the suspect in the Brianna Kupfer murder inquiry – LAPD Police have identified a man they believe to be the killer of ... Read more »

US Capitol attack committee subpoenas Giuliani, other pro-Trump lawyers

© Brendan McDermid, Reuters The congressional committee probing the Jan. 6, 2021, attack on the U.S. Capitol issued subpoenas on Tuesday to three lawyers who joined former President Donald Trump‘s ... Read more »

Xi'an restarts some public transport after coronavirus lockdown

The Chinese megacity of Xi’an has partially resumed public transport, according to official announcements, after millions were confined to their homes for weeks because of a coronavirus outbreak. © STR ... Read more »

Hong Kong plans to cull 2,000 hamsters over Covid fears. Pet owners are outraged

© Kin Cheung/AP Government workers investigate a pet shop that closed after some pet hamsters tested positive for the coronavirus in Hong Kong on January 18. Hong Kong will euthanize ... Read more »

Cambodia opposition leader calls for treason charges to be dropped as trial resumes

© Manan VATSYAYANA Rights groups say Hun Sen maintains his iron grip on the country through a mix of violence, politically motivated prosecutions and corruption Cambodian opposition leader Kem Sokha ... Read more »

This Mother of the Bride is Going Viral for Looking So Extra at Her Daughter's Wedding

© Provided by Preview.ph It was the most joyous day in Dr. Amier Lopez‘s life as she walked down the aisle towards her husband-to-be, Mico Caritativo. Her mom and dad, ... Read more »

Veteran comedian Don Pepot dies at 88

© Provided by PEP.ph Pumanaw ang veteran comedian na si Don Pepot, Ernesto Fajardo sa tunay na buhay, 8:35 ng gabi nitong Martes, January 18, 2022. Siya ay 88 taong gulang. ... Read more »

ICYDK: These Cities in the Metro Offer Free Vet Teleconsult for Your Pets

© Provided by Spot.ph ILLUSTRATION War Espejo © Provided by Spot.ph ILLUSTRATION War Espejo (SPOT.ph) As the number of COVID-19 cases in the Philippines rises again, it’s getting riskier and ... Read more »

Top free-agent Carlos Correa hires Scott Boras

Carlos Correa is going to get a boatload of money this offseason — and the team that signs him is going to have to go through Scott Boras. The top ... Read more »

Manila Zoo opens as COVID-19 vaccination site for minors, senior citizens

© Danny Pata A health worker administers a vaccine against COVID-19 on a minor inside the newly renovated Manila Zoo on Wednesday, January 19, 2022. The city government designated Manila ... Read more »

Arabic oud icon seeks to 'change soul' of Iraq with music

Long uprooted from his native Iraq, Naseer Shamma, an icon of the Arabic oud, has returned home to help rekindle the flame of Iraqi music, snuffed out by decades of ... Read more »

Jan. 6 committee subpoenas Giuliani, 3 other Trump allies, accuses them of pushing election lies

The House committee investigating the Jan. 6 attack on the U.S. Capitol issued subpoenas Tuesday to Rudy Giuliani and three other allies of former President Donald Trump who were involved ... Read more »

Austria gears up to fight EU 'green' nuclear energy plan

As the EU moves to label energy from nuclear power and natural gas as “green” investments, Austria is gearing up to fight this, including with a legal complaint. © JOE ... Read more »

Denzel Washington surprised by grandmother from viral video during TV appearance

© Provided by Cover Media Denzel Washington Denzel Washington was thrilled to be reunited with the grandmother from a 2017 viral video during a TV appearance on Monday night. As ... Read more »

André Leon Talley, fashion industry icon and former Vogue creative director, is dead at 73: report

© Penguin Random House Esteemed journalist Andre Leon Talley strikes a pose on his book cover. Penguin Random House Fashion industry icon André Leon Talley is dead at 73, reports ... Read more »

Former FARC hostage Ingrid Betancourt to make bid for president of Colombia

© Daniel Munoz, AFP Ingrid Betancourt — who was abducted 20 years ago while campaigning for Colombia‘s presidency, and held captive by FARC rebels in the jungle for more than six ... Read more »

Gameplay leaks point to Pokémon Legends: Arceus heavily featuring time travel

© Provided by Dot Esports Several copies of Pokémon Legends: Arceus have seemingly started making their appearance well ahead of its official Jan. 28 release date, and leaks have started ... Read more »

How to grind Champion Points in Elder Scrolls Online

© Provided by GamePur Once you’ve hit level 50, you will be glad to know that the journey isn’t quite over. Reaching Level 50 is only the first step in ... Read more »

Alan Shearer and Ian Wright slam 'really poor' Chelsea star in Brighton draw

© Provided by Metro Callum Hudson-Odoi struggled to make an impact in Chelsea’s draw with Brighton (Reuters) Alan Shearer and Ian Wright have both criticised Callum Hudson-Odoi for his performance ... Read more »

Berichte: Parteiinterne Rebellion gegen Johnson weitet sich aus

© KEYSTONE/AP/Ian Vogler Die parteiinterne Rebellion gegen den britischen Premierminister Boris Johnson nimmt Medienberichten zufolge Fahrt auf. Bis zu 20 Tory-Abgeordnete wollten am Mittwoch Misstrauensschreiben abgeben, schrieb der gut vernetzte ... Read more »

Tonga races to clear runway for volcano aid flights

© Provided by AFP Videos captured by Tongan geologists show a huge ash cloud rising over the island nation during a powerful volcanic eruption that caused a tsunami in the ... Read more »

LAPD identifies suspect in stabbing of UCLA grad student Brianna Kupfer

Police are searching for 31-year-old suspect Shawn Laval Smith, who is considered armed and dangerous and “highly likely to be using public transportation.” LAPD Los Angeles police identified the man ... Read more »

Pakistan's economic woes put PM Khan's future in doubt

© Asif HASSAN The rupee has taken a pounding, losing 12 percent to the dollar since July Housewife Maira Tayyab has considered begging for money to feed her family in ... Read more »

Hong Kong activist Edward Leung released from prison

© Provided by DW Edward Leung coined the now-banned slogan ‘Liberate Hong Kong, Revolution of our Times’ Prominent Hong Kong independence activist Edward Leung has been released after spending four ... Read more »

LAPD searches for a man who stabbed and killed a 24-year-old store employee

Los Angeles police have identified a suspect they’re looking for in the murder of a store employee Thursday in the city’s Hancock Park neighborhood. © Emma McIntyre/Getty Images Flowers were ... Read more »

Ash Barty shows ruthless side in second-round demolition job at Australian Open

© Provided by The Guardian Photograph: Dave Hunt/AAP As ever, Ash Barty the person was understated. And in customary style, Ash Barty the tennis player was ruthless. Another qualifier down, ... Read more »

Pinoy Pride: Swiss luxury brand Bally names Fil-Am Rhuigi Villaseñor as creative director

Pandemic challenges aside, it seems that the year is shaping up to be the peak of Filipino talent and its ascent in the global scene. In the latest marriage between ... Read more »

US law enforcement officials aim to reassure Jewish community in wake of hostage standoff

Top Biden administration law enforcement officials — including the FBI director, the attorney general and the Homeland Security secretary — sought to reassure more than 1,000 members of the Orthodox ... Read more »

Taiwan VP to attend Honduras inauguration with diplomatic ties in balance

Taiwan will send its deputy leader to the inauguration of Honduran president-elect Xiomara Castro, it said Wednesday, as the democratic island faces the potential loss of yet another diplomatic ally ... Read more »

Four French soldiers injured in Burkina Faso bomb blast, says army

© Luc Gnago, Reuters Four French soldiers were wounded in an improvised explosive device blast in northern Burkina Faso, France‘s military told AFP Tuesday evening. “(Their) off-road vehicle activated an IED as ... Read more »

Banjo-Kazooie will join Nintendo Switch Online + Expansion Pack on Jan. 20

© Provided by Dot Esports On Jan. 20, Nintendo Switch users are set to get another classic game available to play via virtual console, and it’s a title fans have ... Read more »

Hong Kong kung fu master intends to run in leadership election

© Reuters/Tyrone Siu Buildings are seen above Hong Kong and Chinese flags, as pro-China supporters celebration after China’s parliament passes national security law for Hong Kong, in Hong Kong By ... Read more »

Leaks suggest you will need to complete the entire Pokédex to capture Arceus in Pokémon Legends: Arceus

© Provided by Dot Esports Pokémon Legends: Arceus won’t release until Jan. 28 on the Nintendo Switch, but early screenshots and information about the game have begun leaking early due ... Read more »

Biden news – live: President to hold news conference as Trump lawyers subpoenaed

LIVE – Updated at 03:12 The White House is planning a Wednesday press conference for Joe Biden to promote his administration’s efforts to combat the Omicron surge and the greater ... Read more »

Konami begins to roll out Yu-Gi-Oh! Master Duel on available platforms

© Provided by GamePur Over the past few weeks, Konami has slowly dripped out news regarding Yu-Gi-Oh! Master Duel, the free-to-play online game that is expected to be a big ... Read more »

How to start gearing for endgame content in Elder Scrolls Online

© Provided by GamePur Elder Scrolls Online is a unique MMO is many ways, but perhaps the most unique thing about it is the lack of vertical progression. Once you ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic