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Proxy advisory firm Glass Lewis has thrown its support behind all three director nominees proposed by activist hedge fund Barington Capital in its campaign to shake up the board at Matthews International’s board, according to a report by Reuters.

Glass Lewis cited the need for “positive changes” at the coffin and memorial products company, which has faced extended periods of underperformance.

The reports cites Glass Lewis as saying in a report released Sunday and seen by Reuters, that Matthews’s 11-member board requires fresh perspectives to address its “protracted underperformance.” The company’s stock has declined 24% over the past five years, closing at $26.55 on Friday.

Barington Capital, which owns nearly 2% of Matthews’s shares, has nominated three candidates, including its founder James Mitarotonda, to the board. Glass Lewis praised the proposed nominees, describing them as “a reasonable, credible, and incremental slate of candidates” who could offer a more effective roadmap than the current board.

The activist hedge fund has called for a new strategy to improve Matthews’ financial performance, including a search for a replacement for longtime CEO Joseph Bartolacci and potential divestments of underperforming assets.

Glass Lewis’s endorsement follows similar recommendations from two other proxy advisory firms, which guide institutional investors on voting decisions in corporate elections.

Matthews, though, has found some support among shareholders, with GAMCO Asset Management, which owns 4.39% of the company, announcing last month that it would back the company’s nominees for now, while also warning it might propose governance changes next year if progress isn’t made.

Commodities expert Luke Sadrian has parted company with Rokos Capital Management after a serving as a Partner and Investment Officer for two years and four months at Chris Rokos’s London-headquartered hedge fund firm, according to a report by Financial News London.

Sadrian, who joined Rokos in November 2022 from discretionary commodities manager Commodities world Capital (CWC) where he held the position of Chief Investment Officer since 2016, traded metals during his time at the hedge fund.

Prior to CWC, Sadrian served as CIO and Managing Partner at Sadrian Bowman Capital, and as a Portfolio Manager at
Moore Capital Management, according to antis LinkedIn profile having also worked at Brevan Howard in London as a Commodities Portfolio Manager.

Activist hedge fund Saba Capital Management, led by Boaz Weinstein, has escalated its campaign targeting underperforming UK investment trusts, signalling a broader push to reform the sector, according to a report by Reuters.

The report cites Weinstein as revealing plans to call general meetings for four trusts to propose transitioning them from closed-ended structures to open-ended ones.

Speaking at a London School of Economics conference on Monday, Weinstein criticised the performance of seven UK investment trusts, describing their results as ranging from “underwhelming” to “disastrous.” He now aims to overhaul four of these trusts — CQS Natural Resources Growth & Income PLC, European Smaller Companies Trust PLC, Middlefield Canadian Income, and Schroder UK Mid Cap Fund — by advocating for an open-ended structure.

“If investors want to stay in the investment trust, good for them, but investors should have the option,” Weinstein said, emphasising the need for greater flexibility in how shares are issued and redeemed.

Weinstein’s campaign has faced resistance from both shareholders and trust managers. Six of the seven targeted trusts have already voted against Saba’s initial proposals, which ranged from investor buyouts to board overhauls. The final trust, Edinburgh Worldwide, is set to vote on Friday.

The Trusts have pushed back against Saba’s actions, calling the campaign opportunistic and not in the best interests of broader shareholders. Richard Stone, Chief Executive of the Association of Investment Companies (AIC), on Monday highlighted Saba’s shift in strategy but called for more specifics on how the proposed structural changes would benefit investors.

The foreign exchange (FX) market, long overshadowed by equities and bonds, is witnessing a resurgence in trading activity as heightened volatility stemming from a second Donald Trump presidency boosts potential profits, according to a report by Bloomberg.

For hedge funds, which once largely sidelined forex trading, the $7.5tn-a-day market is becoming a lucrative arena again. Activity has surged across major and emerging market currencies, particularly in Asia, with trading volumes in some regions reaching record highs since the 2024 US election, according to Citigroup.

Hedge funds are increasingly turning to currency trading to capitalise on sudden price swings. While many forex-focused funds disappeared during the era of ultralow interest rates and synchronised monetary policy, those that survived are now attracting fresh capital, according to data from BarclayHedge.

“The market has shifted, and hedge funds are moving back into FX,” says Kevin Rodgers, former head of Deutsche Bank’s global currency desk. “It’s reminiscent of the financial crisis when currency trading was at its peak.”

For hedge funds, the return of volatility presents an opportunity to profit from short-term bets on exchange rates. This trend has prompted banks and trading firms to rebuild their FX capabilities. Citigroup, for instance, has expanded its currency derivatives teams in London and Singapore, while Wells Fargo recently hired a veteran from Deutsche Bank to lead its currency options team.

The surge in hedge fund involvement is also reviving hiring in the FX market. Recruitment firms report increased demand for traders with experience navigating volatile markets, particularly those who worked during the 2008 financial crisis.

“Many desks had been downsized or replaced by algorithms in recent years,” says Adam Gazzoli, co-founder of London-based recruitment firm Adamis Principle. “But the renewed appetite for FX trading is driving banks to seek experienced talent who can bring a human element to the trade.”

Beyond hedge funds, asset managers are also increasingly incorporating FX strategies into portfolios, with Fredrik Repton of Neuberger Berman noting that: “FX has been a sleeping giant, but we’re emphasising it because of its ability to add value during volatility.”

January marked the busiest month for currency options trading since February 2020, with daily volumes surging 75% compared to the previous year, according to CME Group. Coalition Greenwich forecasts two years of revenue growth for forex trading in developed markets, even as other asset classes, such as sovereign bonds and commodities, face declines.

Optiver Holding BV, a top trading firm in London, reflects the broader enthusiasm. The firm has seen its average daily forex volumes double since 2024 and has switched to 24-hour operations to meet rising demand. “FX was often the quietest corner of the trading floor,” says Tim Brooks, who oversees Optiver’s forex options desk. “Now there’s more price movement and a lot more interest coming in.”

Hedge funds began 2025 on a positive note, recording gains in a volatile January shaped by political transitions and turmoil in the technology sector. The HFRI Fund Weighted Composite Index climbed 1.4%, while the HFRI Equity Hedge Index led the charge at 2.1%.

Additionally, the HFR Cryptocurrency Index added 0.36%, buoyed by optimism surrounding cryptocurrency under the new administration.

The inauguration of Donald Trump as US President brought sweeping policy changes, with executive orders impacting areas such as immigration, trade, energy, and federal spending. Meanwhile, intense competition in the artificial intelligence sector, spurred by Chinese startup Deepseek, drove fluctuations in technology markets.

The month’s political landscape and economic policies created a challenging yet opportunistic environment for hedge fund managers. Directional Equity Hedge strategies were the standout performers, benefitting from market swings tied to both policy and technology developments. Sub-strategy highlights included a 3.6% gain for the HFRI Equity Hedge: Multi-Strategy Index and a 2.8% increase for the HFRI Equity Hedge: Fundamental Value Index.

The broader hedge fund space also saw significant gains from Macro and Event-Driven strategies. The HFRI Macro (Total) Index rose 1.0%, while the HFRI Event-Driven Index advanced 0.9%, reflecting increased expectations for mergers and acquisitions under the new administration.

Fixed income strategies, including interest rate-sensitive plays, extended their strong performance streak. The HFRI Relative Value (Total) Index posted its 15th consecutive monthly gain, advancing 0.8%, led by the HFRI Relative Value: FI-Convertible Arbitrage Index’s 1.3% rise.

Performance dispersion among hedge funds tightened in January, with the top decile of HFRI constituents gaining an average of 7.9%, while the bottom decile declined by 4.1%. This marks a contraction from December’s 13.2% top-to-bottom spread. Over the trailing 12 months, the top decile gained an impressive 41.4%, while the bottom decile fell 9.9%.

Notably, nearly 80% of hedge funds reported positive performance in January, underscoring the sector’s resilience amid market turbulence.

Hedge Fund Research (HFR) expanded its index offerings in January, introducing liquidity-specific indices across its HFRI, HFRI 500, and HFRI 400 families. These indices are aimed at providing investors with benchmarks that better reflect liquidity characteristics, separating funds offering monthly or more frequent liquidity from those with less frequent redemption options.

“Despite the volatility, hedge funds delivered broad-based gains, led by Equity Hedge strategies capitalising on both Fundamental and Quantitative opportunities,” said HFR President Kenneth J Heinz. “Shifting geopolitical risks, inflation concerns, and competition in AI-driven technology continue to create a dynamic environment. Managers have been preparing for these shifts since the US election and are well-positioned to capitalise on accelerating policy changes in the months ahead.”

Hedge funds and other market participants could consider relocating US Treasury trading offshore or utilising alternative strategies to avoid compliance with the upcoming US Treasury clearing mandate, according to a report by Risk.net citing a new academic paper by Yesha Yadav and Joshua Younger.

The mandate, set to take effect at the end of the year for cash Treasury trades and six months later for repo transactions, will require in-scope entities to clear these trades through the Fixed Income Clearing Corporation (FICC). However, the paper highlights concerns over potential evasion tactics, particularly by hedge funds domiciled in jurisdictions like the Cayman Islands.

The paper points out that more than half of hedge funds reporting to the US Securities and Exchange Commission (SEC) are based offshore, particularly in the Cayman Islands. These offshore entities could theoretically execute repo trades with non-US entities that are not FICC members, avoiding the mandate’s requirements.

“Regulators face the risk that frequent participants in the Treasury market decide to move their activities to foreign shores and into non-US entities precisely to have the option to avoid the effect of the mandate,” Yadav and Younger wrote.

Despite this, such trades could still fall within the scope of the mandate if offshore entities engage with counterparties tied to FICC members. The SEC is expected to provide further clarification on the mandate’s scope and potential exemptions later this month.

Yadav, a professor at Vanderbilt Law School, highlights the grey area in US securities law surrounding the mandate. Historically, US law has limited the SEC’s jurisdiction over bond trades between non-US entities, even when trading US instruments, as established by the 2010 Supreme Court ruling in Morrison v National Australia Bank.

“There is a question first and foremost about the reach of this mandate to counterparties abroad,” Yadav explained.

The US does have broad extraterritorial jurisdiction in criminal matters, such as cases involving money laundering or market manipulation. However, such authority requires allegations of criminal conduct.

The paper explores other potential workarounds for market participants seeking to bypass the clearing mandate, including that trades could be restructured as “economically similar” securities lending transactions rather than Treasury repo deals, potentially avoiding clearing requirements.

In addition, repo agreements without fixed maturity dates may fall outside the scope of the mandate, while bilateral repos between two non-dealer counterparties are exempt from the SEC rule, even if a bank guarantees the trade’s settlement.

Despite the theoretical avenues for avoidance, the paper suggests the economic benefits of evading the mandate may not justify the effort. Hedge funds often rely on FICC clearing members for repo transactions, and dealers typically prefer to clear repos due to the capital and risk-weighted asset benefits of sponsored cleared repo transactions.

Elliott Management, the activist hedge fund known for its aggressive investment strategies, has taken a stake in BP, signalling potential pressure on the UK oil giant to reevaluate its strategy amid ongoing financial performance struggles, according to a report by Bloomberg.

The report cites unnamed sources as confirming the stake without disclosing its exact size.

Shares in BP jumped to the top of the FTSE 100 on Monday morning, putting on 7% in early deals as the markets digested news of Elliot’s position in the business.

Elliott, which manages $70bn in assets, has recently shifted its focus toward making larger bets on fewer companies, amplifying its influence in situations such as BP, where shares have underperformed. Over the past year, BP’s stock has fallen nearly 9%, compared to a 6.5% rise for rival Shell, with the company coming under fire for its high debt levels, lack of strategic clarity, and underwhelming financial performance.

Elliott’s involvement raises speculation about potential shifts in BP’s direction. The hedge fund could push for BP to refocus on its core oil and gas business, moving away from its extensive green energy initiatives. Some investors have even suggested that Elliott might advocate for a breakup of the company or a retrenchment from weaker segments of its business.

Elliott’s move comes amid broader dissatisfaction among investors, with some describing BP’s board as having a “muddled strategy” and being “asleep at the wheel.”

BP, led by CEO Murray Auchincloss, has been navigating significant headwinds. The company downgraded its fourth-quarter profit guidance due to weak refining margins, with analysts slashing consensus earnings estimates by 35%. BP also recently announced plans to reduce its 90,000-strong workforce by 5% and cut contractor numbers by 3,000 as part of a $2bn cost-cutting initiative.

In addition, BP has paused or stopped 30 projects since June, streamlined its business operations, and put its German refinery and petrochemical complex in Gelsenkirchen up for sale. The company spun off its offshore wind assets into a joint venture with Japan’s Jera last year to ease its debt burden.

Despite these efforts, investor confidence remains low. Analysts have warned that BP is likely to reduce its planned $1.75bn share buyback program, further dampening market sentiment.

Elliott, led in Europe by Gordon Singer, has a history of pushing for strategic overhauls and boardroom changes at major companies. Recent successes include backing a plan to streamline UK-listed conglomerate Smiths Group and forcing a split of US industrial giant Honeywell just three months into its activist campaign.

Activist hedge fund firm Pershing Square has acquired a $2.3bn stake in Uber with founder Bill Ackman calling the ride-hailing firm “one of the best-managed and highest-quality businesses in the world,” according to a report by the Financial Times.

The announcement comes as Uber pivots toward new opportunities in autonomous vehicles and seeks to build on its recent streak of profitability.

Ackman revealed the investment after Uber reported weaker-than-expected fourth-quarter earnings, emphasising the company’s potential for long-term growth, particularly in the emerging autonomous vehicle sector, which he described as a “$1tn-plus opportunity.”

Uber’s shares rose 6.6% on Friday following Ackman’s disclosure, pushing the company’s market capitalisation to nearly $160bn, with Ackman expressinf confidence in that valuation, stating that its stock remains undervalued.

“We believe Uber is still trading at a massive discount to its intrinsic value,” Ackman wrote on X (formerly Twitter). “This combination of exceptional management, high quality, and undervaluation is extremely rare, especially for a large-cap company.”

While both Uber and Pershing Square declined to comment further, Ackman credited CEO Dara Khosrowshahi with steering the company toward profitability after years of turbulence under co-founder Travis Kalanick.

Uber reported its first-ever annual operating profit in February 2023, marking a pivotal moment for the company, which had faced challenges since its public debut in 2019. The IPO failed to meet lofty expectations of a $120bn valuation and became infamous for the largest first-day dollar loss for a US company.

Since taking the reins in 2017, Khosrowshahi has focused on tightening operations and streamlining the business, a shift that Ackman lauded in his announcement.

The report cites Ackman as also revealing that Pershing Square began acquiring Uber stock in January and now holds more than 30 million shares, although his relationship with the company dates back to its founding in 2009, when he made an initial investment through a venture capital fund.

President Donald Trump has revived calls to eliminate the carried interest tax deduction, a longstanding benefit cherished by hedge fund managers and private equity executives, according to a report by Bloomberg.

The report cites White House press secretary Karoline Leavitt as confirming on Thursday that the president is making the repeal of this tax break a priority in his broader tax reform agenda.

Speaking after a meeting with Republican lawmakers, Leavitt stated: “The president is committed to working with Congress to close the carried interest tax deduction loophole.” This measure, if implemented, would target the ability hedge fund managers and private equity fund managers to pay lower capital gains tax rates on their earnings, potentially reshaping the landscape of investment management taxation.

The carried interest loophole allows investment managers to classify their earnings as capital gains rather than regular income. This means they pay a 23.8% tax rate instead of higher rates that can reach nearly 40% for ordinary wages. The provision has been a flashpoint for critics who argue it unfairly benefits wealthy asset managers, including hedge funds and private equity firms.

Financial markets reacted swiftly to the news, with shares of private equity giants such as Apollo, KKR, and Blackstone falling on the announcement. These firms, along with the hedge fund industry, are expected to ramp up lobbying efforts to protect the tax break, which they argue supports long-term investments.

Drew Maloney, President of the American Investment Council, defended the status quo, stating that the current tax framework “struck the right balance” during the 2017 Tax Cuts and Jobs Act, which made only minor adjustments to carried interest rules. Maloney urged lawmakers to “keep this sound tax policy in place and unleash more long-term investment.”

However, the push to eliminate carried interest has garnered bipartisan support in the past, and Trump’s renewed focus on the issue could draw backing from Democrats. A new bill targeting carried interest was introduced on Thursday by Democratic Senator Tammy Baldwin and Representatives Marie Gluesenkamp Perez and Don Beyer, potentially building momentum for change.

Trump’s latest stance contrasts with his previous track record. During his 2016 campaign, he pledged to repeal carried interest but later softened his position, leaving the loophole largely intact in the 2017 tax overhaul.

In addition to targeting carried interest, Leavitt revealed that Trump wants to address other tax breaks, including those benefiting sports team owners and adjustments to the state and local tax (SALT) deduction.

Saba Capital has suffered another setback in its campaign to remove the boards of seven investment trusts with shareholders of Janus Henderson’s European Smaller Companies Trust (ESCT) decisively voting to back the existing board, according to a report by Daily Business.

The vote, which marks Saba’s sixth defeat in its ongoing battle for change at seven UK investment trusts, saw Saba’s proposals gain just an additional 0.5% of votes cast. Overall, 62.1% of those voting rejected Saba’s resolutions, with turnout once again robust at 76.86%.

James Williams, chair of Janus Henderson’s European Smaller Companies Trust, welcomed the result, describing it as a “clear and complete rejection of Saba’s proposals.”

He added, “Today’s vote is a resounding endorsement of ESCT’s proven investment strategy, the quality of its independent board, and the manager’s ability to deliver outperformance.”

Saba’s campaign is set to conclude with a final general meeting on 14 February, when shareholders of the Baillie Gifford-managed Edinburgh Worldwide trust will cast their votes.

This latest loss follows a series of setbacks for Saba. Over the past week, the hedge fund failed to secure shareholder support to oust the boards of CQS Natural Resources Growth & Income, Henderson Opportunities, Baillie Gifford US Growth, and Keystone Positive Change trusts. The campaign began with an initial defeat at Herald Investment Trust.

Rostro Group, a diversified fintech and financial services company serving hedge funds, broker-dealers, and other commercial institutions, has appointed Saul Knapp to the newly created post of Managing Director, Futures and Options.

Based in London, Knapp will also continue in his role as Rostro’s Chief Risk Officer.

Rostro’s new Futures and Options division has been established as the company continues to expand its product offering and reflects the growing demand for new asset classes. Direct Market Access will be provided through partnerships with the well renowned order management system providers TT and CQG, enabling clients to access thousands of new contracts from exchange operators including The CME Group, ICE, and Eurex.

Knapp began his financial career working on the LIFFE floor as an independent derivatives trader in the 1990s, before taking up a series of risk and trading roles for London-based brokerages and trading houses.

Said Haidar’s macro trading hedge fund, Haidar Jupiter, delivered a 15.8% gain in January, marking its best performance since June 2023 and offering investors a moment of relief following an extended period of steep losses, according to a report by Bloomberg.

The fund’s recent surge follows a brutal two-year stretch during which it plummeted by 62%, its worst-ever run since launching more than two decades ago. Despite the January rally, the fund would need to generate an additional 126% in returns to recover those losses.

A spokesperson for Haidar Capital Management declined to comment on the fund’s recent performance.

Haidar Jupiter is known for its aggressive, highly leveraged bets that can lead to dramatic double-digit gains — or equally sharp losses. This high-risk, high-reward approach sets it apart in an industry increasingly focused on steady, lower-risk returns for institutional investors such as pension funds.

“This fund is not for the faint-hearted,” remarked one client following the January results, acknowledging the stress of receiving monthly updates over the past two years.
The hedge fund has seen wild swings in performance since 2020, with two years of record gains followed by two years of devastating losses. Its assets under management dropped to under $750m by the end of 2024, down from almost $5bn at its peak two years earlier.

While the specific drivers of the fund’s January gains remain unclear, investor letters revealed that equities, fixed income, and commodities were its largest allocations during the month — the same asset classes that accounted for most of its losses in 2024.

Fir Tree Partners, a New York-based activist hedge fund firm with an almost 30-year track record of campaigns targeting distressed companies, is returning external capital to investors, according to a report by Bloomberg.

The report cites a letter sent to investors as confirming that Fir Tree, which was founded in 1994 by Jeffrey Tannenbaum, plans to return approximately 95% of the capital within its Credit Opportunity Fund by early March, with the remaining funds to be returned following a final audit. The firm’s PAMLI Global Credit Convexity business, however, will be handed over to a new investment manager and will continue its operations.

A representative for Fir Tree declined to comment on the matter.

Fir Tree’s flagship credit fund posted a net gain of around 17% last year, up from 13% in 2023, as outlined in the letter. Over its 30-year history, the hedge fund has achieved several key milestones, including challenging banks over mortgage underwriting practices following the 2008 financial crisis and founding sPower, which later became the largest private solar utility in the US.

More recently, Fir Tree has been involved in several high-profile investments. In 2022, the fund made a short bet against the crypto stablecoin tether and has been actively involved in the fortunes of two struggling Swedish companies, Samhallsbyggnadsbolaget i Norden AB (SBB) and Intrum AB.

Citadel has provided an unusual look into the performance of its largest multi-strategy funds, revealing an impressive $57bn in gains during a period of significant profitability for the firm, the most lucrative hedge fund business in history, according to a report by the Business Times.

As part of its $1bn bond offering this week, Ken Griffin’s firm was required to produce a prospectus for potential investors, and while it does not provide a comprehensive overview of Citadel, the document does offer financial results for its three largest funds, covering nearly four years from the start of 2021 through September 2024.

These three funds — Wellington, Kensington, and Kensington II — began 2021 with $23.6bn in assets. Over the period, they generated $56.8bn in gains, with investors netting $30bn after management and performance fees of $7.5bn and pass-through expenses of $17bn, the majority of which was allocated to employee compensation.

Together, the three funds made up approximately 80% of the $65bn Citadel managed at the start of 2025. The Wellington fund, which dates back to 1990, returned 19.5% from its inception through December. Since 2018, Citadel has paid out $18bn in voluntary distributions to its investors.

Citadel declined to comment on the details of the prospectus.

As of the start of this year, around 61% of the assets in Citadel’s multi-strategy funds were sourced from institutional investors, including sovereign wealth funds, pensions, and endowments. Citadel principals and employees, who are subject to the same fees and expenses as other investors, made up 18%. Family offices and funds of funds, meanwhile, represented 12% and 9%, respectively.

Despite a slight decline in net income for the nine months ending 30 September compared to the previous year, Citadel reported that all of its strategies delivered positive net trading revenues, driven by strong performances in equities, natural gas, power in commodities, and fundamental credit and convertibles.

Alp Ercil, a prominent figure in Asia’s distressed asset investment space, is closing his $3bn flagship hedge fund and converting his firm, Asia Research & Capital Management (ARCM), into a family office, according to a report by Bloomberg.

The decision marks the end of a 14-year success story, as Ercil prioritises personal reasons for the transition, according to unnamed sources familiar with the matter.

Ercil has been notifying investors and employees in recent days, preparing for an orderly wind-down of ARCM’s distressed asset fund, which has been a standout in Asia’s hedge fund landscape. Yusuf Haque, ARCM’s chief operating officer, declined to comment on the developments.

Since its inception in 2011, ARCM has achieved exceptional performance with just one annual loss — 1% — in its history. The firm’s flagship distressed asset fund, the fourth in its series, delivered an impressive annualised return of 19.5% over the past five years, including a 10.5% gain in 2024.

The fund thrived without exposure to the technology sector, which has driven recent market rallies. Instead, ARCM focused on undervalued opportunities during the pandemic, purchasing developed-market investment-grade credit with long durations, including debt from US energy firms such as Apache Corp, Energy Transfer LP, and MPLX LP.

In recent years, the firm pivoted to commodities and traditional industries benefiting from the transition to cleaner energy. It avoided speculative bets on electric vehicles and solar power, instead profiting from demand for materials like lithium, copper, and steel driven by industrial upgrades and energy-efficiency initiatives. Additionally, ARCM bet on Japanese bank stocks, anticipating the Bank of Japan’s shift away from ultra-easy monetary policy.

ARCM’s closure is part of a broader trend in Asia’s hedge fund industry, where several prominent firms launched during the pre- and post-2008 boom have since shut down. Firms like Segantii Capital Management and BFAM Partners have faced challenges ranging from regulatory scrutiny to market shocks.

ARCM plans to return $3bn to investors as it liquidates its remaining assets, following the return of $1bn from Fund IV last year. The firm will retain a smaller team to manage partner capital in its new role as a family office.

Ercil founded ARCM after a successful career at Perry Capital, where he specialised in global investments in energy and cyclical industries. Initially staffed with Perry Capital alumni, the firm expanded to Dubai during the pandemic, cementing its reputation as one of Asia’s largest distressed asset investors.

Third Point, the investment manager of Third Point Investors Limited (TPIL), has published its Q4 2024 investor letter, highlighting robust returns across its strategies, including a 9.1% gain for its flagship Offshore Fund, and key portfolio updates.

The Offshore Fund’s Q4 gain brings its full-year 2024 gain to 24.2%, with the firm’s wider performance being driven by positive results across equities, corporate and structured credit, and private investments.

The top five positive contributors for the quarter were Siemens Energy, Amazon.com, Tesla, LPL Financial Holdings, and Apollo Global Management.

The top five negative contributors for the quarter meanwhile, were Danaher, Glencore, Ferguson Enterprises, Intercontinental Exchange, and an undisclosed short position.

In the letter, Third Point notes its successful rotation into consumer discretionary, financials, and industrials, which helped capture upside during the post-US election rally.

Looking ahead, Third Point expects a favourable environment for equity investments but cautions that periodic market dislocations may arise due to unpredictable policy decisions. The firm also anticipates increased M&A activity and opportunities in event-driven strategies.

Swiss private banking giant Lombard Odier has closed its underweight position in hedge funds as part of its updated strategic asset allocations, citing the need for greater diversification and improved risk management in volatile markets, according to a report by CityWire.

Global Chief Investment Officer Michael Strobaek highlighted the move in the bank’s latest outlook, explaining that sharp price movements necessitate disciplined portfolio diversification.

“We have increased the weight of hedge funds in our strategic asset allocations because they offer diversification benefits and the ability to capitalise on market swings,” Strobaek said.

Lombard Odier sees current market conditions as favourable for non-directional hedge fund strategies, which exploit asset volatility without depending on broader market trends.

“The outlook for such strategies in the coming years is better than their performance over much of the past decade,” the bank stated.

Additionally, the bank noted that hopes for reduced corporate regulation following the recent US election could boost merger activity, creating opportunities for merger arbitrage managers.

Lombard Odier’s decision aligns with broader trends in private banking, with HSBC Global Private Banking highlighting hedge funds as a key area of focus in its February outlook, favouring discretionary macro, systematic equity market neutral, Asian equity long/short, multi-strategy, and multi-PM managers.

Meanwhile, a Q4 2024 survey by Citywire’s Super Allocators revealed mixed sentiments toward hedge funds. Among private banking groups, 19% remained underweight, 14% were overweight, and 67% maintained neutral positions.

Julius Baer, a prominent underweight player, suggested in its January outlook that multi-strategy hedge funds could thrive in periods of heightened volatility, reflecting a cautious shift in sentiment.

Lombard Odier continues to hold an overweight position in equities, particularly favouring US and Japanese stocks, while maintaining an underweight position in EMU stocks.

The bank also remains bullish on gold, with a 12-month price target of $2,900 (CHF2,615) per ounce, reflecting its defensive positioning amid uncertain market conditions.

Borderless, a Web3 technology-focused private investment management firm, has bolstered it institutional-grade investment capabilities with the appointment of Ryan Silva as Partner and Head of Trading for the firm’s Multi-Strategy Fund.

Ryan Silva who brings extensive experience in trading and portfolio management across both traditional finance (TradFi) and digital assets, having previously served as Head of Trading at BlockTower Capital, and also held roles at KLS Diversified, a multi-billion-dollar global macro and fixed income hedge fund, RBS Greenwich Capital and Merrill Lynch.

A CFA Charterholder, Silva earned a BS in Business Administration from Northeastern University. A frequent industry speaker, he recently joined The Tie’s The Bridge Conference in NYC, discussing the Effect of the Election on Macro and Digital Asset Markets alongside experts from Grayscale, VanEck, and FalconX.

Since 2018, Borderless has invested in over 250 Web3 projects, with a focus on DePIN, cross-chain interoperability, and ecosystems growth.

London-based hedge fund Taula Capital Management has recruited Alfredo Saitta, a former Portfolio Manager at Brevan Howard Asset Management, as it continues to expand its trading team, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing that Saitta, who previously managed a hedge fund bearing his own name at Brevan Howard, will join Taula as a Portfolio Manager starting 1 August.

Taula, led by Diego Megia, has been aggressively growing its investment team following one of the largest hedge fund launches in recent years. Megia, a former Senior Money Manager at Millennium Management, initially raised $5bn in capital, including contributions from Millennium. He later reopened the fund to add another $1bn, Bloomberg News reported in June.

Since its launch on 1 June, 2024, Taula has returned 7.5%, significantly outperforming the 3.8% average gain posted by hedge funds tracked by Bloomberg over the same period.

Saitta was previously one of Brevan Howard’s key traders, running an eponymous hedge fund as part of the firm’s strategy to retain top talent by allowing star managers to oversee their own investment pools. His fund controlled $1.8bn, with major allocations from Brevan Howard’s Master and Alpha Strategies funds.

However, his fund was shuttered in 2024 as part of Brevan Howard’s firm-wide restructuring, following a 4.9% loss in Q1 2024. Despite this, Saitta had delivered an annualised return of 5.2% since the fund’s inception in 2017.

Preqin’s All Hedge Fund Index rose 2.4% in Q4 2024, taking annual gains to 12.6% annual, and outpacing both public equities and bonds, with the MSCI World Index declining 0.1% and the Bloomberg Global Aggregate Bond Index down 5.1% for the quarter.

The Hedge Funds Q4 2024: Preqin Quarterly Update shows that hedge funds saw mixed returns throughout the quarter, with November seeing the strongest gains at 3.7%, fuelled by a positive market response to the US election results.

October was flat at -0.1%.

December posted a 1.2% decline, as concerns over higher US inflation and strong employment data led to fears of delayed Federal Reserve interest rate cuts.

Multi-strategy and relative value were the best-performing strategies in Q4, returning 3.26% and 1.80%, respectively.

Equity hedge funds meanwhile, saw only a 0.09% gain for the quarter.

Cryptocurrency-focused hedge funds soared, with a 38.3% gain in Q4, including a 45% surge in November, largely driven by bitcoin’s price increase.

According to the report, hedge fund investors are adjusting their strategies for 2025, prioritising risk mitigation, with global macro funds seeing an increase in investor interest, rising to 46% in Q4, up from 36% in Q3.

Relative value strategies also gained traction, growing from 28% to 40%.