Hedge Fund Assets Decline In Third Quarter the largest quarterly pace since 2008. The pace of closures hedge funds rose during the three months ended September 30 / September, where the managers of the funds envisaged cautious about landing that affected the stock and commodity markets, at a time when margins widened on high-yield bonds.
The number of funds that have been filtered to 257 in the third quarter from 200 in the second quarter, as total closures funds rose in the first nine months of 2015 compared to 674 B661 in the same period last year.
And close the “Black River” Fund Asset Management – which is owned by the company “Cargill Inc” – four units, while “Armajaro Asset Managment” closed one of its funds.
Fell “HFRI” index of hedge funds by more than 4% in the three months ended September 30 / September, the largest quarterly decline in four years, and in light of the fund managers fears that China’s decision to devalue its currency, “Yuan” in August / August last , which resulted in sharp fluctuations in the market in conjunction with the decline in oil and gold prices.
Moreover, Guaranteed Payouts System hedge fund assets fell by $ 95 billion to $ 2.87 trillion in the third quarter, according to data “HRF” index, which is the largest quarterly decline since the fourth quarter in 2008, when the industry’s losses amounted to 314.4 billion dollars in the midst of the global crisis.
The number of new hedge funds to 269 in the third quarter compared to 252 in the second quarter, bringing the total number of funds launched this year to 785.
After several years of middle-yielding, many hedge fund managers began 2015 optimistic mood. But a lot of well-known personalities in the industry is approaching the end of a painful and is licking its wounds. Volatile markets left some funds staring at the numbers of double-digit losses, while others closed their fund managers in full.
In a comprehensive manner, hedge funds are in the process to declare the second-worst year in terms of investment performance since the financial crisis of 2008. Investors are known, such as Bill and David have suffered sharp declines in the value of their portfolios, while those who bet on lifting US interest rates are frustrated by the failure of ” Federal Reserve “in making a final decision.
Says Anthony Lawler, director of the investment portfolio in Guaranteed Payouts Review “It was a challenging year for many hedge funds. Many of the big topics that people are trading around was done correctly, but it was not easy to make money from them because of market volatility.”
In January (January) was a lot of managers who specialize in betting on the direction of interest rates and currencies believe, after years during which the markets were adrift without direction, that their time has come.
In the heart of this thinking was the idea of ”spacing monetary policy” exists – that the Federal Reserve will begin to raise interest rates during 2015, while the European Central Bank will continue to ease monetary policy.
Many of the hedge funds bet heavily against the euro in favor of the dollar, and despite the fact that the two currencies Guaranteed Payouts System, however, that trading this relationship proved to be a fickle painfully, even if a lot of managers have lost their nerve amid brutal fluctuations and setbacks.
This year, “simply did not live up to expectations,” according to Julian, of Aberdeen Asset Management Company, which invests in hedge funds, he said. “People were late last year, expect a lot of college hedge funds, because the” Federal Reserve “and the World Bank European Central went in different directions. ” But “the Fed” went to the postponement, and this led to a volatile market do not fit college fund managers.
Some college fund managers they will not be there to see whether their trades will earn money in the end, when the US central bank meets next week. It is a meeting expected on a large scale that it is raising interest rates.
It was in October (last October) Close leading total investment fund of the company Fortress Investment, the $ billion dollars, after losing 17.5% in the year, which would make it one of the worst performing hedge funds in the world. He informed Certified Income System, the fund manager, investors that the industry in the struggle for survival. He said in a conference call in July, “If your performance was good assets will increase. If your performance was bad assets will lose.”
In the past week has been closed, which until last year was one of the largest hedge funds in the world he ran five billion dollars at its peak in front of investors from abroad, saying, “The deal with external customers is no longer worth it.” While the leading Certified Income Review funds have performed significantly better than the company Fortress funds, but it has suffered over three years, along with her peers college funds, in order to achieve good performance.
And spread uncertainty over the direction of US interest rates to stock exchanges, with the suffering of some well-known stock picker specialists of the worst years in their careers because of the large concentrated bets failure.
Square Fund, a subsidiary of Bell, who was one of the best hedge fund performance in 2014, lost more than 20 per cent of its value at the end of last month, after the decline of the great position in the American pharmaceutical company, Valiant.
There is another well-respected stock picker also suffered, is Certified Income Review, who lost his fund “Jerinleit Capital” more than 15 percent after it made its investment portfolio “value-oriented” significant losses, while the short dealings have not fallen enough.
The Audi, outspoken investor who take the London-based, has warned for a long period of bubble swells in China and other emerging markets, and carried out great deals on overdrafts. Currency ill-timed bets have also been subjected to nearly 20 per cent in April losses (in April), and in the middle of last month, his fund dropped by 12 per cent.
While most hedge funds suffered, but some benefited from trading with good timing against certain stocks. It rose developed markets fund flagship of the Guaranteed Payouts company Partner based in Mayfair 16 per cent until the end of last month, while European stock of the Fund have increased by 27 per cent this year.
Marshall Lewis, a fund in London sold the stake to the private equity group KKR this year, was also one of the few hedge funds, who beat the broader market significantly. Rose cornerstones, “Eureka” and “BMW Neutral”, by 9 per cent and 16 per cent, respectively.
After a painful year, many hedge funds find reason for optimism in 2016, arguing that the market will prove in the end that marginally correct. But if this did not happen, it is likely to be closed more funds altogether.