Hedge Fund Alert

In this week's Hedge Fund Alert, the continued dominance of multi-managers, among them Millennium Management and Citadel, has led to steep decline in launches by sector-specific equity managers, with the giants hoovering up talented stock-pickers who might have otherwise gone out on their own, according to an annual analysis by seeder Borealis Strategic Capital. The report also found that multi-strats are increasingly supplanting banks and global asset managers as the top feeders of new firms. Plus, Paloma Partners' new COO has formed an operation with other seasoned executives to help new hedge fund firms get off the ground. And hedge fund industry lobbyists, emboldened by court victories and a shift in SEC rule-making sentiment, are doubling down on a campaign to rescind regulations they find onerous. Link for subscribers: https://bit.ly/4bhjtFE If you'd like to subscribe: https://lnkd.in/eFR5GWrC

In this week's Hedge Fund Alert, "Big Short" figure Michael Burry, who called the mortgage-bond meltdown that led to the 2008 credit crisis, is reopening his flagship fund to outside capital for the first time in years; a former endownment PM is blowing past benchmarks with his hedge fund startup, gaining more than 100% in just 15 months; and prime broker Clear Street continues apace with expansion plans, luring a senior executive from Goldman Sachs. Plus, a roundup of the latest trends in hedge fund hiring, with investor-relations and business-development pros in high demand. Link for subscribers: https://bit.ly/4ba92Uw If you'd like to subscribe: https://lnkd.in/eFR5GWrC

In this week's Hedge Fund Alert, a tech-focused real estate lender with a high annualized return offers hedge fund-like liquidity; the founder of an equity firm candidly reflects on his mistakes and the strategy pivot that helped him return to profitability after a prior run of bad performance; and the hedge fund industry wins temporary reprieves on a pair of rules just ahead of compliance deadlines. Plus, a manager that's long been closed to new investment is reopening to capitalize on the evolution of artificial intelligence. Link for subscribers: https://bit.ly/4htv2vI If you'd like to subscribe: https://lnkd.in/eFR5GWrC

This week's edition of Hedge Fund Alert is now available. In today's issue, Mike Novogratz's $5.7 billion Galaxy Digital has launched its first hedge fund to invest in equities, derivatives and ETFs, with expectations assets will hit $100 million in short order; small- and mid-cap manager Privet Fund Management has vastly scaled back assets and terminated its SEC registration, suggesting it's shuttering after 18 years in business; and high-performing tech-stock investor Proem Asset Management is seeking a final $200 million before pausing fundraising in the second half of the year. Plus, a passel of job changes across the industry. Link for subscribers: https://bit.ly/3Er3FDV If you'd like to subscribe: https://lnkd.in/eFR5GWrC

In this week's Hedge Fund Alert, the decision by Fir Tree Partners to shutter after 30 years followed a decade-long decline in assets, from $12.5 billion in 2014 to $1.2 billion at the end of last year; Aaron Weitman's Castleknight Management, now approaching $2 billion, continues a run of strong performance; and Quest Partners, which rebranded this month to AlphaQuest, is preparing for what it sees as a period of high volatility ahead. Plus, a Hong Kong hedge fund operator is on the ropes after a long run of astonishingly bad returns. Link for subscribers: https://bit.ly/40DQjvC If you'd like to subscribe: https://lnkd.in/eFR5GWrC

In today's issue of Hedge Fund Alert, hedge fund backer Borealis Strategic Capital is looking to raise up to $400 million for the latest in a series of funds that will invest in seed deals with emerging managers. The firm's eight previous investments include $1.4 billion Vor Capital and $1 billion Two Seas Capital. Also in today's issue, equity manager Isomer Partners is shutting down after eight years, unable to recover from a deep drawdown. And a new quantitative firm has developed what it considers a novel approach to factor investing. Plus, hires at Graham Capital, Walleye Capital, Millennium Management and other big firms. Link for subscribers: https://bit.ly/4jumcz9 If you'd like to subscribe: https://lnkd.in/eFR5GWrC

In this week's issue, after years of strong returns, Armistice Capital has rankled some of its investors by imposing a year-long hold on redemptions, with subsequent 25% quarterly gates, following a significant number of redemption requests; Engineers Gate is in the midst of a major growth spurt, adding assets and headcount; and a run of stellar performance by energy investor e360 Power came to an end in 2024. Plus, a portfolio manager with experience at Eisler Capital and ExodusPoint Capital is building his own global-macro firm. Link for subscribers: https://bit.ly/3PDvKu0 If you'd like to subscribe: https://lnkd.in/eFR5GWrC

In this week's Hedge Fund Alert, we've calculated that 2024 was the biggest year in decades -- if not in the history of the hedge fund industry -- for launches of more than $1 billion by new firms, with six startups raising a combined $18.4 billion. That tally eclipses 2018, when ExodusPoint Capital began trading with $8 billion and when D1 Capital and Point72 Asset Management launched. Separately, Hedge Fund Alert's annual outlook survey offers opinions from nearly 150 hedge fund professionals, allocators, service providers and attorneys on what lies ahead in 2025. Link for subscribers: https://bit.ly/4fOvCCG If you'd like to subscribe: https://lnkd.in/eFR5GWrC

In this week's Hedge Fund Alert, a pack of long/short equity funds -- led by CAS Investment, Jericho Capital and Thames Capital -- has been trouncing benchmarks this year, with some returns hitting triple digits; QVR Advisors is making adjustments to its flagship strategy amid concerns by investors about frothy markets and a worrying profusion of trades in the options market; and a Solus alum has joined the burgeoning private credit space, with a direct-lending vehicle in the works. Plus, four years after the implosion of Allianz Global, the full list of scorched investors has been disclosed in a court document.

In this week's issue, 12-year-old quantitative manager Seven Eight Capital is in peril after CPP Investments pulled a big allocation, while Blackstone is considering doing the same, amid recent losses; Paloma Partners has built a new leadership team following a staggering number of redemptions; and niche event-driven firm Two Seas Capital is blowing past its benchmarks for the second straight year. Plus, we've published our deeply reported annual feature on the world's biggest institutional investors, with news about allocations, redemptions, performance, hires and current AUM.