hedge funds

artificial intelligence, cryptocurrencies, Eurekahedge, hedge funds, machine learning

The bloodbath in October left AI/machine learning hedge funds at a loss, as the Eurekahedge AI Hedge Fund Index slumped 3% over the month – its worst monthly performance ever…

Hedge fund closures down in 2018, assets are up but performance is muted

October 30, 2018

Hedge Funds

Barclay Hedge, eVestment, hedge funds, HFR, securities finance, topstory

The hedge fund industry is seeing an uptick in assets and fewer funds closed in 2018 than 2017, but only a portion of those funds posted positive returns. As hedge…

AI hedge funds on track for first year in the red, crypto hedge funds down too

October 18, 2018

artificial intelligence, cryptocurrencies, Eurekahedge, hedge funds

AI hedge fund managers posted their worst monthly performance on record since 2011, as indicated by the 2.06% decline of the Eurekahedge AI Hedge Fund Index in September. This loss…

AI and crypto hedge funds down in September

October 10, 2018

artificial intelligence, cryptocurrencies, Eurekahedge, hedge funds

AI hedge fund managers spent another month in the red, as represented by the Eurekahedge AI Hedge Fund Index which was down 2.63% in September, and 5.21% year-to-date. The Eurekahedge…

Bloomberg: institutional investors and miners are creating an OTC crypto market

October 2, 2018

cryptocurrencies, hedge funds

Hedge funds and miners are shifting sales to over-the-counter trading in what is a departure from peer-to-peer crypto tradition, writes Bloomberg in a recent article. And institutional investors are becoming…

AI and crypto hedge funds down in August

September 12, 2018

artificial intelligence, cryptocurrencies, Eurekahedge, hedge funds

AI hedge fund managers posted their fifth monthly loss for the year in August and were down 0.43%. The Eurekahedge AI Hedge Fund Index, which tracks funds using AI and machine learning…

Eurekahedge publishes data on the global hedge fund industry

August 22, 2018

Eurekahedge’s global hedge funds infographic sums up the industry as at August 2018. Find out more about global hedge funds assets under management (AUM), asset flows into strategic and regional…

AI hedge funds down, cryptocurrency hedge funds up in July

August 14, 2018

artificial intelligence, cryptocurrencies, Eurekahedge, hedge funds

Preliminary numbers show that AI hedge funds are on track to post a fourth consecutive month of losses, with the Eurekahedge AI Hedge Fund Index down 0.09% in July. This loss brought…

FISL London 2018: buy-side debates CCP market share, considers route to cheaper borrow rates

May 10, 2018

CCP, FISL

Eurex, hedge funds, OCC, prime brokers, Securities Lending CCPs, topstory

During a panel discussion at FISL NYC, participants gave a prediction on the future of securities lending. CCPs came out on top as a market infrastructure that will lead the…

Top commercial transactions of the last week (Premium)

March 6, 2018

Blockchain, Custodians, Hedge Funds, Securities Lending, Technology

blockchain, Custodians, Custody, hedge funds, Securities Lending, topstory

Custodians, asset managers, hedge funds and vendors all made some notable trades in the middle of Q1. We offer an analysis of three important deals for the industry including who…

Securities finance as an alpha generator on the buy-side? A FISL NYC and London afternoon session

January 11, 2018

FISL, Hedge Funds, Investments, Repo, Securities Lending

Alpha generation, asset managers, Finadium, FISL, hedge funds, securities finance, topstory

Can hedge funds and asset managers generate meaningful alpha for their portfolios using securities finance? This is an important question for both the funds themselves and the professionals that work…

Bank of England on hedge fund and PB risk: better than it used to be but issues remain

January 4, 2018

Jonathan Cooper

Bank of England, Credit Exposure, Europe, Hedge Funds, Investments, Prime Brokerage, Pro-cyclicality, Risk Management, Systemic Risk

Bank of England, hedge funds, Initial Margin, prime brokers, Procyclicality, topstory

A recent publication from the Bank of England shows that hedge fund systemic risk is generally lower than it used to be; that’s a good thing for the markets. Hedge…

Research paper shows benefits of PB information flow for hedge funds

December 20, 2017

hedge funds, prime brokers

Researchers from the University of Alabama and the University of Florida document a channel of information flow from investment banks to their prime brokerage hedge fund clients. They examine whether hedge…

Finadium Report: Analysis from the US Rates & Repo 2017 Conference

December 5, 2017

Hedge Funds, Investments, Repo, US

events, Finadium, FISL, hedge funds, Rates & Repo, Repo, topstory, US

Finadium has documented the questions and feedback from our November 1, 2017 Rates & Repo event in New York as a research report. The event drew 145 attendees, with 34%…

Our analysis of IOSCO’s latest hedge fund survey (Premium)

November 27, 2017

Hedge Funds, IOSCO, Liquidity Management

hedge funds, IOSCO, Leverage, topstory

IOSCO released their 2016 data analysis of hedge fund assets, leverage and liquidity. While this document always feels a bit dated compared to current markets, it also has some kernels…

IOSCO finds hedge funds most advanced in G20/FSB securities market recommendations

November 8, 2017

FSB, G20, hedge funds, IOSCO, securities markets

The Board of the International Organization of Securities Commissions (IOSCO) today published a report on the implementation of the G20/FSB post-crisis recommendations aimed at strengthening securities markets. It was prepared…

Recap of Finadium’s Rates & Repo Conference 2017 in New York

November 6, 2017

Hedge Funds, Investments, Money Market Funds, Repo, US

Finadium, hedge funds, Rates & Repo, Repo, topstory, US

We are pleased to report that our first Rates & Repo Conference, held last week in New York, was by all accounts a great success. We had 162 registrations by…

There are impacts from the US securities lending lawsuit no matter what happens (Premium)

October 17, 2017

Hedge Funds, Prime Brokerage, Securities Lending

hedge funds, lawsuit, Prime Brokerage, Securities Lending, topstory

The lawsuit against six banks and EquiLend, with some big pensions signed on as plaintiffs, already has likely outcomes and plausible winners regardless of any judgement. Some market participants and…

Rates & Repo event update: who is coming and featured panels

October 11, 2017

Cash management, Federal Reserve, Interest rates, Investments, Repo

asset managers, Benchmarks, cash management, hedge funds, Rates & Repo, Repo, topstory, US Treasury

We are excited to present our inaugural Rates & Repo conference in New York on November 1. We now have over 110 registrations, with hedge funds, asset managers and other…

Are the buy side and sell side on the same page about the direction of prime brokerage?

July 3, 2017

Richard Stinchfield

Hedge Funds, Investments, Liquidity Management, Prime Brokerage, US

BNY Mellon, buy-side, Finadium, financing, hedge funds, Liquidity, Prime Brokerage, topstory

BNY Mellon released the results of a buy-side survey on liquidity and financing on June 26th. How closely do the concerns and attitudes of investors towards their liquidity and financing…

Are hedge funds really that risky as counterparties in collateralized trading?

June 1, 2017

Collateral Management, Custodians, Hedge Funds, Prime Brokerage, Repo, Securities Lending, Technology

brokers, buy-side, collateral management, credit risk, Custodians, hedge funds, P2P, peer to peer, topstory

As Peer to Peer markets make their play, credit departments at buy-side firms around the world are looking askance at the very idea of a collateralized trade directly with a…

Next Steps for Hedge Funds in Cost Management

May 22, 2017

mstan

Basel III, Derivatives, Hedge Funds, Investments, Repo, Securities Lending

hedge funds, Prime Brokerage, Societe Generale, topstory

These are legitimately complex times for hedge funds. Between macropolitical turmoil, negotiating fees and managing their daily activities, hedge fund managers must pay attention to a wide range of factors…

Prequin: 39% of hedge funds changed prime brokers, 19% changed fund custodian in 2016

May 16, 2017

hedge funds, Prequin, prime brokers

Fund administrators, custodians, prime brokers, auditors, law firms and fund marketers all play a crucial role in allowing hedge fund managers to operate their businesses effectively. The service provider industry…

What hedge funds think about Direct/Peer to Peer platforms (Premium)

April 13, 2017

Hedge Funds, Repo, Securities Lending

direct, FISL NYC, hedge funds, peer to peer, topstory

We heard from several hedge funds over the last week on Direct and Peer to Peer platforms. While these platforms are interesting, there are some significant issues that must be…

FISL in NYC: change is the only constant

April 6, 2017

Events, Finadium Event

Agent Lenders, Big Data, blockchain, Direct Borrowing and Lending, Direct repo, distributed ledger technology, hedge funds, Lending CCP, peer to peer, securities finance revenues, technology, topstory

The only certainty about securities finance is that the market is going through a major transformation. And though regulations may have been the driver for adopting technology to tackle the…

FISL launches today in NY: an interview with Finadium’s Josh Galper

April 3, 2017

general collateral, hedge funds, Investors in securities lending conference, securities finance, Securities Lending, topstory

Finadium Event, Regulatory, Securities Lending

Finadium’s Investors in Securities Lending (FISL) conferences are bringing together a wide spectrum of participants in the securities finance market, and so far that’s shaping out to be a major success. Over…

Reuters: CME Group sees Chinese hedge funds, state-owned firms driving Asia growth

February 23, 2017

China, CME, hedge funds

Feb 21 China’s 2015 market crash sparked a surge in Asian trading for futures exchange giant CME Group as Chinese funds hedged their risk offshore and growth prospects remain strong,…

CCP deposits at the Fed: good theory but bad practice

November 30, 2016

CCP, Federal Reserve, Interest rates, Investments, US

CCPs, Federal Reserve, hedge funds, IOER, topstory

The WSJ’s Katy Burne published an article this week on CCPs that are being paid interest on large amounts of cash placed at the Fed. We covered this when the…

The Trade: Hedge funds demands up the pressure on derivatives prime brokers

November 4, 2016

hedge funds, prime brokers, The Trade

Derivatives prime brokers are feeling increased pressure from clients to increase their services, as hedge funds pursue strategies targeting multiple asset classes. According to The TRADE Derivatives 2016 Derivatives Prime Brokerage…

CFTC Chairman Timothy Massad on measuring hedge fund leverage

October 21, 2016

CFTC, hedge funds, Leverage

Keynote Remarks of Chairman Timothy Massad at the Managed Funds Association Outlook 2016 Conference October 21, 2016 FSOC Asset Management Project Finally, I would also like to say a few…

Falling leverage and low volatility threaten Europe’s hedge funds

October 10, 2016

Paul Amery

Europe, Hedge Funds, Investments, Prime Brokerage

BIS, fees, hedge funds, NSFR, prime brokers, topstory

For European hedge funds, already under pressure for below-target returns, low volatility and falling leverage threaten to add up to a toxic mix. Regulators may be happy with less leverage…

Redeploying brokerage infrastructure for Direct securities finance transactions (Premium)

July 11, 2016

Richard Stinchfield

Hedge Funds, Market infrastructure, Operations, Prime Brokerage, Securities Lending, Technology, US

arranged financing, Direct Borrowing and Lending, Enhanced leverage, hedge funds, Prime Brokerage, topstory

The latest in a long line of once unthinkable changes in securities finance is the concept of direct lending and borrowing between beneficial owners and hedge funds. US brokers have…

Federal Reserve Board formalizes previously announced one-year conformance period extension for certain Volcker rule legacy fund investments

July 8, 2016

Federal Reserve, hedge funds, Volcker Rule

Formalizing its prior commitment to facilitate the orderly implementation of section 619 of the Dodd-Frank Act, commonly known as the Volcker Rule, the Federal Reserve Board on Thursday announced that…

Finadium for Hedge Funds: Tools and Information for Alternative Investors

June 21, 2016

alternative asset managers, alternative UCITS, hedge funds, liquid alternatives, topstory

Derivatives, Hedge Funds, Prime Brokerage, Regulatory, Repo, Securities Lending

For our June 2016 Finadium Executive Briefing report, we provide a PowerPoint presentation on important topics in securities finance for alternative investment managers. The presentation covers: Continue reading

Changes in hedge fund leverage according to IOSCO

December 15, 2015

Collateral Management, Hedge Funds, IOSCO, Regulatory

hedge funds, IOSCO, Leverage, topstory

IOSCO released their third hedge fund survey last week with some expected results and some new information. Most importantly, we have to get used to their definitions of leverage and…

Finadium: Balance Sheet Optimization Strategies (Self-Funding) for Hedge Funds and Other Alternative Asset Managers

November 12, 2015

Basel III, Collateral Management, Derivatives, Hedge Funds, Investments, Prime Brokerage, Regulatory, Repo, Securities Lending, Technology

Balance sheet, Finadium, hedge funds, optimization, self-funding, topstory

Finadium has released a new Executive Briefing report on balance sheet optimization strategies for hedge funds. Hedge funds and other alternative asset managers have been hearing about balance sheet optimization,…

An abundance of Special Purpose Vehicles (Premium Content)

October 20, 2015

Collateral Management, Derivatives, Hedge Funds, Investments, Prime Brokerage

Business Development Companies, hedge funds, prime brokers, SIVs, Special Purpose Vehicles, topstory

We continue to note a growth in the number of Special Purpose Vehicles in the market, the majority of which (but not all) are sponsored by banks and brokers. We…

Prime Brokerage and Balance Sheet Optimisation: Lessons from the Societe Generale Experience

October 19, 2015

mstan

Basel III, Collateral Management, Credit Exposure, Derivatives, Featured, Prime Brokerage, Regulatory

Balance sheet, CCPs, hedge funds, Prime Brokerage, Societe Generale, topstory

The industry-wide topic of balance sheet optimisation has hung in the air like a fog for the last three years. We at Societe Generale are now seeing what this means…

Five reasons why prime brokers say different things about balance sheet scarcity to their hedge fund clients (Premium Content)

September 23, 2015

Basel III, Credit Exposure, Featured, Hedge Funds, Investments, Liquidity Management, Prime Brokerage, Regulatory

Balance sheet, corporate bond liquidity, hedge funds, Liquidity, prime brokers, Regulation, topstory

We were recently asked why prime brokers are reporting different information to their hedge fund clients on why balance sheets have been tightening. The “balance sheet is scarce” story might…

Nobody wants your cash

September 22, 2015

Jonathan Cooper

Basel III, Cash management, Featured

Cash Investment, hedge funds, LCR, NSFR, topstory

We keep on hearing stories about the trouble hedge funds are having in finding a home for their cash. What is going on here? Continue reading

Monday news roundup on regulatory reach and no-risk markets (Premium Content)

July 13, 2015

Collateral Management, Dodd-Frank, Europe, Federal Reserve, Regulatory, Repo, Securities Lending, Total Return Swaps, Trade Repositories

ESMA, Federal Reserve, FTT, hedge funds, Repo, Securities Lending, topstory, Trade repositories

The news these days is coming fast and furious, especially for mid-summer. We’ve missed a few things in our regular posts that we wanted to get back to. This edition…

Finadium: Prime Brokerage: Towards a New Target Operating Model for Financing

May 27, 2015

CCP, Collateral Management, Prime Brokerage, Securities Lending

collateral, financing, hedge funds, Margin, Prime Brokerage, Securities Lending, topstory

This Finadium report looks at a newly emerging conversation in prime brokerage on the Target Operating Model for financing. We evaluate the historical prime brokerage financing model in relation to…

The SEC’s ADV data: hedge fund edition (Premium Content)

April 23, 2015

Hedge Funds, Investments, SEC, US

asset managers, Form ADV, Form PF, hedge funds, sec, topstory

The SEC recently released their Form ADV data on investment managers including a large number of hedge funds. The data err on the side of conservatism in non-disclosure and can…

Finadium: The Securities Lending Industry in 2015

April 21, 2015

Central Counterparties, Collateral Management, Hedge Funds, Investments, Prime Brokerage, Securities Lending

Agent Lenders, asset managers, collateral management, hedge funds, non-cash, pensions, prime brokers, Securities Lending, topstory

A new report from Finadium provides a data-oriented overview of the securities lending industry in 2015 including the players, market size and regulatory drivers affecting participant behavior. Data are sourced…

Finadium: Custody for long/short funds

March 10, 2015

Custodians, Hedge Funds, Prime Brokerage, Securities Lending

Custody, Finadium, hedge funds, long/short funds, Prime Brokerage, Prime Custody, topstory

Finadium has released a new research report, “Evaluating and Selecting a Custodian for Long/Short Investment Funds.” This report is a discussion of important points for long/short funds to consider in…

Finadium: What the Buy-side Should Know About Netting

February 23, 2015

Basel III, Derivatives, Dodd-Frank, EMIR, Prime Brokerage, Repo, Securities Lending

banks, brokers, hedge funds, netting, OTC derivatives, prime brokers, Repo, Securities Lending, topstory

A new report from Finadium looks at what netting rules are most important for the buy-side, including hedge funds, asset managers and institutional investors, as they work to best position…

We need simple new names for financial market institutions (Premium Content)

We argue for better language to describe various functions in financial markets. There are banks and bank holding companies that offer a wide variety of credit intermediation and agency services.…

The CME starts to get serious about repo clearing (Premium Content)

January 20, 2015

CCP, Hedge Funds, Repo

CCPs, CME Group, DTCC, hedge funds, LCH.Clearnet, Options Clearing Corp, Repo, topstory

We heard last week from three different market participants that the CME is engaging with market participants on a repo clearing project. CME’s involvement has been known publicly for some…

Finadium: Perspectives on Direct Borrowing and Lending

January 14, 2015

Collateral Management, Credit Exposure, Hedge Funds, Investments, Repo, Securities Lending

Agent Lenders, Beneficial Owners, Credit Exposure, Direct Borrowing and Lending, hedge funds, REITs, Repo, Securities Lending, topstory