Trend hedge funds could sell up to $42 bln in US shares

According to a Goldman Sachs report, trend following hedge funds, also known as CTAs (commodity trading advisers), could offload anywhere between $20 billion and $42 billion in U.S. equities over the next month if the stock market's decline continues. These funds operate systematically, aiming to capture significant market trends. Goldman Sachs highlighted that if the S&P 500 index were to dip, it would signal a shift in short term trends from positive to negative for trend following hedge funds, prompting them to initiate equity sales.

Should the S&P experience a 3.2% decrease in the next month, CTAs would likely sell approximately $20 billion worth of companies within the index and over $200 billion in global equities, as outlined in the bank's recent note. Further decline could push S&P sales to the $42 billion mark. Since April 11, the S&P has declined by about 2.6%, driven by robust U.S. economic indicators and geopolitical uncertainties. Hedge funds collectively sold U.S. equities for the second consecutive week, particularly following the unexpected strength in the consumer price index, which raised concerns about the Federal Reserve's interest rate policy.

Digital assets hedge fund Triton Liquid launches in Abu Dhabi

Triton Liquid, a hedge fund specialising in digital assets, has established its global headquarters in Abu Dhabi after securing preliminary approval from the Abu Dhabi Global Market’s and Financial Services Regulator. Funded by New York based VC firm FJ Labs, Triton Liquid received a $30 million investment from FJ Labs, known for backing notable companies such as Alibaba, Stripe, Revolut, Klarna, and financial wellness company ABHI. Triton Liquid aims to raise an additional $50 million in capital this year according to reports.

Led by Founder and CIO Chris Keshian and supported by a team of five, the fund seeks to offer a tailored platform for Middle Eastern investors keen on capitalising on the growth of blockchain technology and cryptocurrency adoption.

Man Group: World’s largest publicly listed hedge fund’s assets swell to new record

Hedge fund giant Man Group reported a nearly five percent surge in assets under management for Q1 2024 compared to Q4 2023. Assets reached $175.7 billion (￡142 billion) by March 31, up from $167.5 billion (￡135 billion) at the end of December 2023. By category: $50.3 billion; Total return: $43.3 billion. Multi manager solutions dipped to $17.7 billion, but systematic long-only ($39.7 billion) and discretionary long-only ($24.7 billion) rose.

In 2023, pretax profit dropped to $340 million (￡268 million) from $779 million (￡615 million) the prior year, mainly due to a 77 percent decrease in performance fees. Net revenue fell to $1.2 billion (￡950 million) from $1.7 billion (￡1.3 billion) in 2022. Last May, former CEO Luke Ellis stepped down, succeeded by president Robyn Grew after 15 years with the firm.