The Hedgeweekender | Trump’s tax reforms, the great US stock bail, Saba shorts Bloomsbury
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This week in hedge funds
?? The year has started strong for hedge funds, with over three-quarters reporting positive returns in January, outpacing the previous three years, according to The Citco Group Limited .?
?? As US stocks decline following weak economic reports, hedge funds are exiting US tech and media stocks at the fastest pace in six months – 高盛 reports.?
?? With the rotation out of the US underway, bets on Asian stocks have reached record highs, with China and Hong Kong accounting for nearly half of the inflows.
?? The increased market volatility has led 63% of global institutional investors to turn to fixed-income hedge funds, expecting annual returns of 10%+ – RBC BlueBay Asset Management reports.?
??Despite the promising start, the road ahead may not be so smooth, with hedge funds facing heightened scrutiny over leveraged macro bets from the Financial Stability Board (FSB) .?
?? Additionally, managers may be hit hard by Trump’s proposed tax reform, which targets the financially beneficial carried interest break.
The week in numbers
?? 43% – the increase in Man Group 's reported pre-tax profits from 2023 to 2024, totalling $398m, and leading to a 5% share surge.?
?? $508m – The total digital asset outflows last week, amid uncertainty surrounding trade tariffs, inflation, and monetary policy, CoinShares reports.?
?? $350m – The amount Balyasny Asset Management L.P. is raising for its first VC fund, Atlas Growth LP, marking a strategic push into growth-stage enterprise tech startups.
?? 0.95% – Saba Capital Management, L.P. 's short position against Bloomsbury Publishing Plc , worth ￡5.1m, despite its previous stance as a UK market champion.?
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