Graham Capital's funds rise in September, Quantedge and High Ground also perform well

➡️ Big-name multistrategy hedge funds have trailed the S&P 500 for the most part this year. ➡️ Citadel, Schonfeld, Point72, and LMR have had strong years in smaller, more concentrated funds. ➡️ These strategies focus on a specific asset class or trade in which the firm believes it has an edge. https://lnkd.in/enH4TyjQ

Partnership Announcement: Hedge Fund Club x Z22 Technologies AG We are pleased to announce a strategic partnership with Z22 Technologies AG, a FINMA-regulated quantitative hedge fund and spin-off from ETH Zürich and the Universität St.Gallen (HSG). This collaboration includes: •⁠ ⁠Hands-on guidance in the implementation of investment strategies, with Z22 as a regulated partner •⁠ ⁠Personal sparring and thought partnership with founder Philipp Baumann •⁠ ⁠Active involvement in the Club’s mentoring program Through this partnership, we are building a bridge between academic excellence and practical application – with a strong focus on systematic strategies, quantitative investing, and machine learning in asset management. About Z22 Technologies AG: Z22 is a FINMA-regulated Swiss hedge fund specialized in systematic investment strategies across both traditional financial markets and cryptocurrencies. Its investment process is fully automated and systematic, built on proprietary machine-learning algorithms with no discretionary interventions. As a spin-off from ETH Zurich and HSG, Z22 embodies innovation, academic rigor, and real-world execution in modern asset management. We look forward to an inspiring collaboration.

Eisler to Shut Hedge Fund Amid Talent War and Poor Returns The London-based firm said its returns failed to keep pace with expectations, while the battle to recruit and keep top traders capable of deploying capital at scale has only grown more expensive. Eisler’s multistrategy hedge fund, which reported a negative return of 1.7% this year through August, has about 250 staff helping to manage assets of $3.2 billion. That’s down from $4 billion a year ago. The firm said the fund generated annualized gains of 7% since inception. Last year, the firm even imposed punishing pay clawbacks on traders who quit, in the hope of stemming the exodus of talent to rival funds. The firm charged clients $244 million in pass-through expenses in 2023 and almost $200 million the year before. https://lnkd.in/erR3T4fp

Billionaire Hedge Fund Manager Ken Griffin Says Artificial Intelligence Fails to Help Hedge Funds Beat Markets This probably means it will not help mutual fund managers or financial advisors to beat the market. Interesting article: https://lnkd.in/gSh7mm2U

Hedge Fund Performance People often ask me whether it’s worth investing in hedge funds. My short answer: it depends on your level of sophistication. Let’s start with a relatively unsophisticated investor — someone who can only build a simple portfolio of traditional assets like stocks and bonds. For this investor, adding hedge funds is beneficial. Between 1994 and 2020, hedge funds delivered an average alpha (net of fees) of about 3% per year relative to such a portfolio. Now consider a more sophisticated investor who also has access to advanced strategies, such as trend-following — strategies that exploit recent price trends across equities, bonds, commodities, and currencies. For this investor, hedge funds become far less attractive, as the average net alpha drops to just 0.4% per year. Why such a sharp drop? Because much of hedge fund performance comes from exposures to these strategies. So if you can replicate them yourself, why pay high fees for it? 🔍 Want to learn more? Read our research paper, “Is it Alpha or Beta? Decomposing Hedge Fund Returns When Models Are Misspecified,” coauthored with David Ardia, Patrick Gagliardini, and Olivier Scaillet, recently published in the Journal of Financial Economics (https://lnkd.in/e_DA52da) Or check out my recent interview in PaperJam, a Luxembourgish newspaper (https://lnkd.in/e6MHKDBR)

Laurent Barras is talking about our research with Olivier Scaillet and Patrick Gagliardini that looks at the difference between alpha and beta in hedge funds. The published version at JFE is available here https://lnkd.in/gJ7A2y5r and the working paper version freely available here https://lnkd.in/g65tfHbe #hedgefunds #performance #alpha #beta #skills #factormodels

Lowering fees and raising target returns are efficient ways for a hedge fund strategies to increase diversification benefits for a portfolio. Replication gives the flexibility to do just that in contrast to direct LP investments. h/t Nate Geraci https://lnkd.in/eXRciRse

Calamos and Aksia Launch Third Interval Fund, Expanding AC Private Markets Partnership: Hedged Strategies Fund (HEDGX) Offers Curated Portfolio of Hedge Funds

The world of multi-strategy hedge funds is becoming a difficult place for small firms to exist. Hedge funds can only afford to spend big bucks on money managers as long as performance is good and AUMs are rising. Names like Millennium, Citadel, Point72 and Balyasny delivered returns and increased assets in the last few years. Eisler struggled on both fronts in the last year or so. Not only did the returns remain below par, its assets dipped, and costs increased to more than 5% of its assets under management. It's getting tougher and tougher for small multi-strategy hedge funds to compete with giants in attracting top portfolio managers. “The challenge of attracting and retaining experienced money managers capable of deploying capital at scale within a cost structure acceptable to investors has grown significantly,” CIO Ed Eisler said in an investor letter. Full story: https://lnkd.in/eBRhKqZH

A clearer outlook for interest rates is good for alpha generation - and particularly for hedge funds, argues total return expert Steve Huguenin-Virchaux Read more: https://lnkd.in/erGrDvYd #alternatives #hedgefunds #PictetAMinsights