The long and the short of it

Lee Robinson, hedge fund veteran and founder of Altana Wealth, is preparing to launch a new strategy which focuses on the fast-growing SPACs sector. In this week’s feature interview, the event driven specialist discusses the assortment of investment ideas arising from the rapid evolution in SPACs, and considers how hedge funds can continue to capitalise on the current boom.

New data published by Hedge Fund Research this week reveals that the number of new hedge fund launches last year has hit a three-year high. The research, which also shows the number of fund liquidations trending downwards over the past 12 months, points to a global manager community galvanised by the nascent economic recovery and shifting macro environment, and underlines its ability to not only withstand periodic bouts of volatility, but to thrive in changeable market conditions.

One such manager is Drury Capital, the long-running US trend-following hedge fund firm led by former grain trader Bernard Drury. The firm has turned in sterling double-digit performances over the past year across both its established flagship fund and recently-launched multi-strategy futures strategy, making gains across rising commodities and equities markets.

Elsewhere, Aberdeen Standard Investments laid out its bullish perspective on event driven merger arbitrage strategies as deal volumes continue to rebound. The allocator is also keen on equity long/short and activist managers, which are tipped to generate profits from the continued fallout from the coronavirus pandemic.

On the short side, meanwhile, renowned bear Russell Clark outlined his negative stance on gold, urging caution on what he considers as the precious metal’s "expensive" level. In a market commentary this week, Clark explored the long-term value of the precious metal, and its relationship with the price of food, contending that despite a generally inflationary view, the traditional safe-haven asset has disappointed this year.



Hugh Leask
Editor, Hedgeweek
 

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