Hedge fund giants post gains in April despite volatility
17/05/2024 15:28
By Nell Mackenzie and Summer Zhen
LONDON/HONG KONG, May 17 (Reuters) - Large global hedge
funds extended their strong first quarter performance into
April, despite it being a turbulent month for stock markets
worldwide as they grapple with shifting monetary policy
expectations.
Ken Griffin's Citadel saw its Wellington Fund rise 2% in
April, bringing its returns this year to 7.8%. Its other
strategies, including a global equities strategy, also posted
gains for April and the first four months, a source familiar
with the matter said.
Rival Izzy Englander's Millennium Management was up 1.1% in
April and 4.8% so far this year, according to a note from HSBC
Alternative Investment Group. Another multi-strategy hedge fund
giant Schonfeld Strategic Advisors's flagship fund ended April
with gains of 0.5%, being up 6.8% year-to-date.
These funds did better than average. The HFRI Fund Weighted
Composite Index, which tracks a range of hedge fund strategies
globally, posted a 0.6% decline in April.
Equity hedge funds tracked by the data provider HFR fell
1.6% on average last month, indicating these big hedge fund
players were better able to navigate the market downturn.
The S&P 500 .SPX was at the fore of a retreat in global
equities in April, dropping 4%, as investors unwound crowded
positions in large stocks and reduced risk-taking on concerns
interest rates will stay high for longer and Middle East
tensions will escalate.
Still, market volatility, such as the frequent disconnects
between Wall Street's performance and central banks' policy
signals, created opportunities for hedge funds that take both
bullish and bearish positions.
"Managers in both credit and equities continue to benefit
from increased dispersion as both inflation and rate
expectations remain challenged," Swiss private bank UBP said in
a note.
Global distressed and discount bond trading fund Shiprock
Capital Management returned 4.7% in April, taking returns so far
this year to 18%.
Some investors capitalised on the rebound in the biggest U.S.
stocks such as Nvidia NVDA.O and Amazon AMZN.O after a
selloff.
New York-based multi-manager platform Cinctive was up about
2% in April and about 9% year-to-date, its performance driven
mostly by stocks, including technology and financials, according
to a source familiar with the matter.
In addition, a rally in commodities ranging from gold and
oil to copper also boosted hedge fund performance, market
participants said.
However, not all hedge funds had a good month. New
York-based Exodus Point and London-based Marshall Wace's
flagship funds dropped 0.2% and 0.5% respectively in April but
were up 1.9% and 7.4% respectively for the year so far, as per
an investor letter and a source.
Hedge
Funds Performance - April Performance - YTD
Citadel Wellington 2% 7.8%
Schonfeld Strategic 0.5% 6.8%
Partners
Millennium 1.1% 4.8%
International
Winton 1.2% 10.3%
Multi-strategy fund
Cinctive 2% 9%
Exodus Point -0.2% 1.9%
Citadel Tactical 3.3% 11.2%
Trading
Citadel Global 3.3% 9.9%
Equities
Citadel Global Fixed flat 2%
Income
Schonfeld 0.2% 6.2%
Fundamental Equity
Marshal Wace Eureka -0.5% 7.4%
Marshall Wace Market 1% 8.8%
Neutral Tops
Marshall Wace Global -0.4% 5.5%
Opportunities
Winton Diversified 1.7% 12.1%
Macro
AQR Apex Strategy 2.4% 13.5%
AQR Helix Strategy 2.4% 11.1%
AQR Managed Futures 3% 21.1%
Full Volatility
Aspect Diversified 1.7% 21.8%
Shiprock Capital 4.7% 18%
Mulvaney Capital 10.1% 134.6%
Management
(Reporting by Summer Zhen and Nell Mackenzie; additional
reporting by Carolina Mandl
Writing by Summer Zhen: Editing by Vidya Ranganathan and Peter
Graff)
((summer.zhen@thomsonreuters.com; 852-3462-7739;))