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NEWSLETTER | 13 Nov 2020

Stock markets soared this week after US drug manufacturer Pfizer and Germany’s BioNTech revealed a breakthrough in their large-scale Covid-19 vaccine trials, with tests suggesting their jointly-developed treatment is some 90 per cent effective in preventing coronavirus.

Combined with Joe Biden’s delayed-but-ultimately-decisive victory over Donald Trump in the hotly-contested US presidential election, the announcement could dramatically recalibrate the investment landscape for all asset classes with just over six weeks left of the year.

Of course, December can often be a month underpinned by uncertainty, with investors opting to take risk off the table in the run-up to the holidays before rejoining the fray in the new year. The final outcome of the Brexit negotiations remains unclear, and may yet possibly drive further market volatility between now and the end of the year.

For their part, though, hedge funds have largely weathered the recent October turbulence and renewed lockdowns, and remain in positive territory for the year. Equity-focused strategies were powered by gains from healthcare and technology, while event driven managers rose on the back of growing expectations of more M&A activity heading into 2021.

Managers of all strategies will be keeping a close eye on how the broader news cycle drives sentiment between now and the end of 2020.

Already, Pershing Square chief Bill Ackman – the high-profile activist manager who scored a stellar USD2.6 billion gain during March’s market rupture – is building another sizeable bet based around corporate defaults stemming from the coronavirus.

The deadly pandemic has upended all corners of the economy and society, with the hedge fund industry no different.

But as speakers at this week’s HedgeweekLIVE Europe summit observed, the industry has demonstrated its ability to quickly react and adapt its business structures and operational models in the face of such an unprecedented shock.

Meanwhile, on the client-facing side, two new surveys underline once again this sector’s capacity to withstand economic turbulence and market volatility through active management – a quality which has not gone unnoticed by investors.

hugh leask signature.jpg

Hugh Leask
Editor, Hedgeweek

Fri | 13 Nov 2020, 12:18

Robust, diversified teams that build trust with investors and differentiate themselves from competitors are vital for building long-term success in the hedge fund industry, says Anne-Sophie d’Andlau, co-founder, partner and deputy CEO at Paris- and London-based activist manager CIAM.

Fri | 13 Nov 2020, 12:18

The gross return of the SS&C GlobeOp Hedge Fund Performance Index for October 2020 measured -0.11 per cent.

Fri | 13 Nov 2020, 12:18

The hedge fund industry posted a second consecutive monthly loss in October, down 0.11 per cent for the month, according to the Barclay Hedge Fund Index.

Fri | 13 Nov 2020, 12:18

The European Energy Exchange (EEX) has recorded its highest trading volume to date in Japanese Power Futures. Throughout the month of October, EEX achieved a total traded volume of 111 GWh, thereby setting a new monthly record.

Pershing Square Capital Management selects Northern Trust for multi-jurisdictional fund administration services

Fri | 13 Nov 2020, 12:18

Northern Trust has been appointed to provide fund administration services for Pershing Square Capital Management (Pershing Square). Under the mandate, Northern Trust will support Pershing Square’s Guernsey, Cayman and Delaware domiciled funds.

Fri | 13 Nov 2020, 12:18

The Wilshire Liquid Alternative Index, which provides a representative baseline for how the broad liquid alternative investment category performs, returned -0.51 p[er cent in October, underperforming the -0.22 per cent monthly return of the HFRX Global Hedge Fund Index.