Weekly round - up

Computer-led equity hedge funds beat human stock-pickers in October

In October, computer program driven hedge funds out performed human stock pickers by a significant margin in the world of equity trading, as stated in a report from Goldman Sachs. The bank's prime services team reported a 4.97% gain for systematic funds last month and fundamental long/short funds experienced a decline of 0.66%

The performance of systematic funds was propelled by factors such as asset selection, volatility, and successful trading strategies. The fundamental long/short funds saw a decline primarily due to their exposure to stock indexes. In October, the MSCI index for global stocks declined by 2.90%.

Hedge fund investors pull $80 billion from industry in 2023 - Aurum

As of October 18, the hedge fund industry witnessed net outflows of $80 billion for the year, despite accumulating net profits of approximately $119 billion, according to a report by hedge fund specialist Aurum Funds. This trend emerged as investors sought higher returns in alternative investments. Aurum reported that multi-strategy hedge funds outperformed other categories, delivering a positive return of 5.9% year to date. Credit hedge funds followed closely behind, achieving a positive return of 5.6%.

Don Steinbrugge, the founder and CEO of Agecroft Partners, a consulting firm specialising in hedge funds, suggested that investors may have been enticed by the increasing bond yields. According to investor Michael Oliver Weinberg, the outflow of funds from hedge funds is indicative of the industry maturing. He stated that future growth is likely to come from private wealth investors, offsetting the declining interest from institutional investors. However, Weinberg pointed out that hedge funds are typically less tax-efficient than strategies such as private equity, which could act as a hindrance to industry growth.

Man Group acquires majority stake in impact investor Asteria

Man Group, the world's largest publicly-traded hedge fund business, boasting assets exceeding $162 billion, has acquired a 51% stake in Geneva based impact asset management firm Asteria Investment Managers reports Investmentweek. The remaining 49% ownership is retained by Fideuram -Intesa Sanpaolo Private Banking.

The Swiss Financial Market Supervisory Authority (FINMA) and antitrust authorities have granted approval and clearance for this transaction. Man Groups primary focus will now be on enhancing Asteria's portfolio by developing a range of technology-enabled alternative and long-only investment strategies.