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Jefferies Strategic Investments and Leucadia Asset Management Holdings have won a major legal victory against George Weiss, after a federal judge ruled that the hedge fund founder is personally liable for millions in unpaid debts tied to the collapse of Weiss Multi-Strategy Advisers, according to a report by Investment News.

Founded in 1978, Weiss Multi-Strategy Advisers was once one of the industry’s most respected firms, managing over $2bn in assets. However, a combination of lavish executive spending, declining performance, and mounting debts led to its dramatic shutdown in early 2024.

On 29 February, 2024, Weiss shocked his team in a Zoom call, instructing portfolio managers to liquidate all positions. Despite declining assets, executives allegedly continued flying on private jets and distributing six-figure bonuses, while Chief Investment Officer Jordi Visser faced criticism for focusing on his personal brand instead of stabilising operations.

The final blow came when Leucadia, a strategic partner of Jefferies, demanded repayment on outstanding loans. With no funds to meet its obligations, Weiss Multi-Strategy Advisers filed for Chapter 11 bankruptcy in April 2024, leaving creditors and employees – some owed millions in deferred compensation – scrambling.

Before the bankruptcy, Weiss signed a Forbearance Agreement in February 2024 with Jefferies and Leucadia, seeking to delay payments on $53m in debts tied to a 2018 Strategic Relationship Agreement (SRA) and two Note Purchase Agreements (NPAs).

Crucially, Weiss signed the agreement both personally and on behalf of the firm, with provisions explicitly binding him. Judge Alvin K Hellerstein of the US District Court for the Southern District of New York ruled firmly in favour of Jefferies and Leucadia, granting summary judgment against Weiss.

Weiss attempted several legal defences, arguing duress, lack of consideration, and lack of mutual assent, all of which were rejected. His claims that he signed the agreement under coercion, citing threats of lawsuits and reputational damage, were dismissed as insufficient to establish economic duress, especially given his status as a seasoned financial professional with legal representation.

The ruling strengthens Jefferies and Leucadia’s position in ongoing bankruptcy litigation, where Leucadia has accused Weiss of treating the hedge fund as a “personal piggy bank”, citing $28m in executive bonuses paid while the firm was insolvent.

Jefferies Strategic Investments and Leucadia Asset Management Holdings have won a major legal victory against George Weiss, after a federal judge ruled that the hedge fund founder is personally liable for millions in unpaid debts tied to the collapse of Weiss Multi-Strategy Advisers, according to a report by Investment News.

Founded in 1978, Weiss Multi-Strategy Advisers was once one of the industry’s most respected firms, managing over $2bn in assets. However, a combination of lavish executive spending, declining performance, and mounting debts led to its dramatic shutdown in early 2024.

On 29 February, 2024, Weiss shocked his team in a Zoom call, instructing portfolio managers to liquidate all positions. Despite declining assets, executives allegedly continued flying on private jets and distributing six-figure bonuses, while Chief Investment Officer Jordi Visser faced criticism for focusing on his personal brand instead of stabilising operations.

The final blow came when Leucadia, a strategic partner of Jefferies, demanded repayment on outstanding loans. With no funds to meet its obligations, Weiss Multi-Strategy Advisers filed for Chapter 11 bankruptcy in April 2024, leaving creditors and employees – some owed millions in deferred compensation – scrambling.

Before the bankruptcy, Weiss signed a Forbearance Agreement in February 2024 with Jefferies and Leucadia, seeking to delay payments on $53m in debts tied to a 2018 Strategic Relationship Agreement (SRA) and two Note Purchase Agreements (NPAs).

Crucially, Weiss signed the agreement both personally and on behalf of the firm, with provisions explicitly binding him. Judge Alvin K Hellerstein of the US District Court for the Southern District of New York ruled firmly in favour of Jefferies and Leucadia, granting summary judgment against Weiss.

Weiss attempted several legal defences, arguing duress, lack of consideration, and lack of mutual assent, all of which were rejected. His claims that he signed the agreement under coercion, citing threats of lawsuits and reputational damage, were dismissed as insufficient to establish economic duress, especially given his status as a seasoned financial professional with legal representation.

The ruling strengthens Jefferies and Leucadia’s position in ongoing bankruptcy litigation, where Leucadia has accused Weiss of treating the hedge fund as a “personal piggy bank”, citing $28m in executive bonuses paid while the firm was insolvent.

STP Investment Services (STP), a global provider of technology-enabled investment operations, has launched STP LaunchAdvisor, a bundled fund administration and compliance solution tailored to the needs of emerging managers.

The new solution is designed to deliver comprehensive fund administration, investor services, regulatory filings, and core policies designed for exempt reporting advisers and private fund managers.

According to a press statement, the offering “integrates fund administration and compliance into a single, cost-effective solution, eliminating the need for multiple service providers and providing the infrastructure and regulatory support emerging managers need to establish and scale their funds efficiently”.

As part of this offering, STP provides hands-on consultation to guide new managers through the complexities of launching a fund, and also connects emerging managers with a network of preferred providers, including audit, tax, prime brokerage, and legal firms, who offer competitive, cost-effective pricing on both essential and value-added services.

STP Investment Services (STP), a global provider of technology-enabled investment operations, has launched STP LaunchAdvisor, a bundled fund administration and compliance solution tailored to the needs of emerging managers.

The new solution is designed to deliver comprehensive fund administration, investor services, regulatory filings, and core policies designed for exempt reporting advisers and private fund managers.

According to a press statement, the offering “integrates fund administration and compliance into a single, cost-effective solution, eliminating the need for multiple service providers and providing the infrastructure and regulatory support emerging managers need to establish and scale their funds efficiently”.

As part of this offering, STP provides hands-on consultation to guide new managers through the complexities of launching a fund, and also connects emerging managers with a network of preferred providers, including audit, tax, prime brokerage, and legal firms, who offer competitive, cost-effective pricing on both essential and value-added services.

The technology sector has maintained its position as the most shorted sector for the third consecutive month, with Apple, IBM, Super Micro, SoFi Technologies, and Texas Instruments leading the pack, according to data from Hazeltree.

The company’s February 2025 Shortside Crowdedness Report, which tracks short selling activity across large-, mid-, and small-cap stocks, also identified Kering SA and H&M in the EMEA region, along with Disco Corporation in APAC, as some of the most shorted large-cap stocks.

Hazeltree, a specialist in active treasury and intelligent operations technology for the alternative asset industry, aggregates data from its proprietary securities finance platform, which monitors approximately 15,000 global equities. The data, compiled from a network of around 700 asset manager funds, is anonymised and provides insight into the most heavily shorted securities worldwide. Hazeltree then assigns a Crowdedness Score to each security, ranging from 1 to 99, where 99 represents the highest concentration of shorting activity.

Tim Smith, Managing Director of Data Insights at Hazeltree, noted that while the US tech sector continues to experience layoffs, the pace has slowed compared to last year. Additionally, job postings remain high, and the IT job market continues to contract.

“These trends suggest a market in transition rather than collapse, with tech companies adjusting talent strategies to align with shifting economic priorities,” Smith explained.

In the Americas, Chevron Corporation held steady as the most crowded large cap security for the second month in a row, scoring a perfect 99, while Super Micro Computer followed closely with a score of 91 and maintained the highest institutional supply utilisation at 53.27% for the third straight month.

Dayforce topped the mid-cap category with a Crowdedness Score of 99, while Shift4Payments, Inc had the highest institutional supply utilisation at 35.88%.

In terms of small-cap stocks, Wolfspeed continued its dominance as the most crowded security for the seventh consecutive month, scoring 99, while Enovix Corporation held the highest institutional supply utilisation at 85.91%.

In EMEA, Kering SA and H&M were the top contenders in the large-cap category, each scoring 99. Kering returned to the top for the second consecutive month, while H&M maintained the highest institutional supply utilisation at 76.34% for the eighth month in a row.

Kingfisher plc, BE Semiconductor Industries NV, and Delivery Hero SE were all at the top in terns of mid-cap stocks with perfect scores of 99. Carl Zeiss Meditec AG had the highest institutional supply utilisation at 51.20%.

Alphawave IP Group, meanwhile, remained the most crowded small-cap security for the third month in a row with a score of 99, while Oxford Nanopore Technologies led in institutional supply utilisation at 74.11%.

In APCA, Disco Corporation maintained its position as one of the most crowded large-cap securities with a score of 99 for the second consecutive month, while MTR Corp had the highest institutional supply utilisation at 21.07%.

Mid-ca Kokusai Electric Corporation also secured a perfect score of 99 for the second month in a row and had the highest institutional supply utilisation at 51.66%, while Tokai Carbon Co reemerged as the most crowded small-cap security, with a score of 99 for the second consecutive month. KeePer Technical Laboratory held the highest institutional supply utilisation at 74.51%.

The technology sector has maintained its position as the most shorted sector for the third consecutive month, with Apple, IBM, Super Micro, SoFi Technologies, and Texas Instruments leading the pack, according to data from Hazeltree.

The company’s February 2025 Shortside Crowdedness Report, which tracks short selling activity across large-, mid-, and small-cap stocks, also identified Kering SA and H&M in the EMEA region, along with Disco Corporation in APAC, as some of the most shorted large-cap stocks.

Hazeltree, a specialist in active treasury and intelligent operations technology for the alternative asset industry, aggregates data from its proprietary securities finance platform, which monitors approximately 15,000 global equities. The data, compiled from a network of around 700 asset manager funds, is anonymised and provides insight into the most heavily shorted securities worldwide. Hazeltree then assigns a Crowdedness Score to each security, ranging from 1 to 99, where 99 represents the highest concentration of shorting activity.

Tim Smith, Managing Director of Data Insights at Hazeltree, noted that while the US tech sector continues to experience layoffs, the pace has slowed compared to last year. Additionally, job postings remain high, and the IT job market continues to contract.

“These trends suggest a market in transition rather than collapse, with tech companies adjusting talent strategies to align with shifting economic priorities,” Smith explained.

In the Americas, Chevron Corporation held steady as the most crowded large cap security for the second month in a row, scoring a perfect 99, while Super Micro Computer followed closely with a score of 91 and maintained the highest institutional supply utilisation at 53.27% for the third straight month.

Dayforce topped the mid-cap category with a Crowdedness Score of 99, while Shift4Payments, Inc had the highest institutional supply utilisation at 35.88%.

In terms of small-cap stocks, Wolfspeed continued its dominance as the most crowded security for the seventh consecutive month, scoring 99, while Enovix Corporation held the highest institutional supply utilisation at 85.91%.

In EMEA, Kering SA and H&M were the top contenders in the large-cap category, each scoring 99. Kering returned to the top for the second consecutive month, while H&M maintained the highest institutional supply utilisation at 76.34% for the eighth month in a row.

Kingfisher plc, BE Semiconductor Industries NV, and Delivery Hero SE were all at the top in terns of mid-cap stocks with perfect scores of 99. Carl Zeiss Meditec AG had the highest institutional supply utilisation at 51.20%.

Alphawave IP Group, meanwhile, remained the most crowded small-cap security for the third month in a row with a score of 99, while Oxford Nanopore Technologies led in institutional supply utilisation at 74.11%.

In APCA, Disco Corporation maintained its position as one of the most crowded large-cap securities with a score of 99 for the second consecutive month, while MTR Corp had the highest institutional supply utilisation at 21.07%.

Mid-ca Kokusai Electric Corporation also secured a perfect score of 99 for the second month in a row and had the highest institutional supply utilisation at 51.66%, while Tokai Carbon Co reemerged as the most crowded small-cap security, with a score of 99 for the second consecutive month. KeePer Technical Laboratory held the highest institutional supply utilisation at 74.51%.

Hedge funds, including Brevan Howard, Capula and Millennium, have upped their leveraged bets on UK government bonds, amplifying concerns over potential instability in the gilts market, a key benchmark for UK borrowing costs, according to a report by Reuters.

The report cites unnamed market sources as highlighting that hedge funds now account for 60% of UK bond trading volumes, up from 53% at the end of 2023 – a trend that has drawn scrutiny from the Bank of England (BoE) and regulators.

BoE Governor Andrew Bailey recently cautioned that hedge fund activity could “propagate liquidity stress” in UK markets, particularly due to their heavy usage of short-term lending in repo markets. Repos (repurchase agreements), a key funding mechanism, have become crucial for hedge funds deploying a range of high-leverage bond trades.

Market sources indicate hedge funds are among the most active players in gilt repo financing, and are currently deploying three main strategies in UK gilts: basis trade arbitrage, whereby speculators buy futures contracts on 10-year gilts while shorting the cash bond, exploiting a pricing discrepancy; inflation trades, whereby funds are shorting 10-year gilts while buying two-year bonds, betting on persistent UK inflation; and momentum-based shorting, which has seen trend-following hedge funds short 10-year gilts for seven of the past nine weeks, according to JPMorgan data.

While these positions represent only a portion of each fund’s portfolio, their combined scale is stretching repo market capacity – raising concerns over liquidity during times of market stress.

The increasing concentration of hedge fund borrowing in UK repo markets has broader systemic implications. The BoE has warned that other financial institutions, including pension funds and insurers, could be squeezed out of repo borrowing – potentially triggering forced asset sales if liquidity dries up.

In January, a gilt market selloff forced UK pension funds to post £3bn ($3.9bn) in additional collateral, exacerbating concerns about repo market fragility. To mitigate this risk, the BoE has introduced a new liquidity facility for gilt holders, though eligibility requirements limit access to institutions holding at least £2bn in UK bonds.

Hedge funds, including Brevan Howard, Capula and Millennium, have upped their leveraged bets on UK government bonds, amplifying concerns over potential instability in the gilts market, a key benchmark for UK borrowing costs, according to a report by Reuters.

The report cites unnamed market sources as highlighting that hedge funds now account for 60% of UK bond trading volumes, up from 53% at the end of 2023 – a trend that has drawn scrutiny from the Bank of England (BoE) and regulators.

BoE Governor Andrew Bailey recently cautioned that hedge fund activity could “propagate liquidity stress” in UK markets, particularly due to their heavy usage of short-term lending in repo markets. Repos (repurchase agreements), a key funding mechanism, have become crucial for hedge funds deploying a range of high-leverage bond trades.

Market sources indicate hedge funds are among the most active players in gilt repo financing, and are currently deploying three main strategies in UK gilts: basis trade arbitrage, whereby speculators buy futures contracts on 10-year gilts while shorting the cash bond, exploiting a pricing discrepancy; inflation trades, whereby funds are shorting 10-year gilts while buying two-year bonds, betting on persistent UK inflation; and momentum-based shorting, which has seen trend-following hedge funds short 10-year gilts for seven of the past nine weeks, according to JPMorgan data.

While these positions represent only a portion of each fund’s portfolio, their combined scale is stretching repo market capacity – raising concerns over liquidity during times of market stress.

The increasing concentration of hedge fund borrowing in UK repo markets has broader systemic implications. The BoE has warned that other financial institutions, including pension funds and insurers, could be squeezed out of repo borrowing – potentially triggering forced asset sales if liquidity dries up.

In January, a gilt market selloff forced UK pension funds to post £3bn ($3.9bn) in additional collateral, exacerbating concerns about repo market fragility. To mitigate this risk, the BoE has introduced a new liquidity facility for gilt holders, though eligibility requirements limit access to institutions holding at least £2bn in UK bonds.

Mining giant Rio Tinto has reaffirmed its commitment to a dual-listed structure and urged shareholders to reject a proposal by activist hedge fund Palliser Capital to review its listings in London and Sydney, according to a report by Reuters.

The hedge fund, alongside more than 100 shareholders, is pushing for a shift to a single Australian listing, arguing that such a move would enhance Rio’s share price and unlock shareholder value. The campaign mirrors past activist efforts, including BHP’s unification in 2022, which followed similar investor demands.

Rio Tinto though has dismissed Palliser’s claims, stating that it has already conducted a comprehensive review of the structure and engaged with key stakeholders, including Palliser. The company maintains that a unification would be value-destructive and unnecessary for strategic flexibility.

“A dual-listed companies (DLC) structure unification is not required to provide the group with strategic flexibility,” Rio Tinto said in a statement on Wednesday.

With annual shareholder meetings scheduled for 3 April in London and 1 May in Perth, the hedge fund’s push sets the stage for a potential showdown. However, resistance from Australian shareholders, who argue that consolidation would erode value, could pose a challenge to Palliser’s ambitions.

Mining giant Rio Tinto has reaffirmed its commitment to a dual-listed structure and urged shareholders to reject a proposal by activist hedge fund Palliser Capital to review its listings in London and Sydney, according to a report by Reuters.

The hedge fund, alongside more than 100 shareholders, is pushing for a shift to a single Australian listing, arguing that such a move would enhance Rio’s share price and unlock shareholder value. The campaign mirrors past activist efforts, including BHP’s unification in 2022, which followed similar investor demands.

Rio Tinto though has dismissed Palliser’s claims, stating that it has already conducted a comprehensive review of the structure and engaged with key stakeholders, including Palliser. The company maintains that a unification would be value-destructive and unnecessary for strategic flexibility.

“A dual-listed companies (DLC) structure unification is not required to provide the group with strategic flexibility,” Rio Tinto said in a statement on Wednesday.

With annual shareholder meetings scheduled for 3 April in London and 1 May in Perth, the hedge fund’s push sets the stage for a potential showdown. However, resistance from Australian shareholders, who argue that consolidation would erode value, could pose a challenge to Palliser’s ambitions.

Some strategies aren’t new, but what gives them an edge is how they are applied. Such is the case with Regents Gate Capital, co-founded by Joshua White, Yi-Sung Y, and Dane Vrabac. By integrating artificial intelligence into a traditional market-neutral approach, they’ve created a unique investment proposition in an already crowded hedge fund landscape.

It’s been just over a year since Regents Gate launched, employing a fundamental equity market-neutral strategy that exemplifies the edge fund approach.

The investment methodology involves taking long and short positions in stocks based on fundamental analysis, with the goal of remaining neutral to overall market movements. White explains that the strategy prioritises stock-specific risks over broader market factors, creating a differentiated offering particularly attractive to pension funds seeking uncorrelated returns.

This playbook, pioneered by hedge fund major Citadel, is one White knows well, having spent 15 years as a Portfolio Manager there and at Balyasny Asset Management. However, what sets Regents Gate apart is its integration of custom-built artificial intelligence, which the firm claims enables predictions with 70–80% accuracy.

“We’ve taken a proven strategy and evolved it by incorporating more data, making us more informed, more predictive, and more accurate,” says White.

The AI models assess stocks by analysing over 1.5 million data features, including business trends, using an average of 100 data points per stock to forecast performance – establishing a technological edge in a strategy typically dominated by traditional fundamental analysis.

But, whilst AI plays a central role in the investment process, human oversight is present at every step, curating data features and setting key performance indicators (KPIs). The final decision always rests with the team.

“We review trades daily to ensure the most up-to-date fundamentals are reflected in our portfolio, all whilst maintaining tight risk controls,” says White.

The depth of AI-driven analysis aligns well with Regent Gate’s portfolio, which is 90% composed of industrial companies – a sector defined by its numerous moving parts – with consumer and technology firms making up the remaining 10%.

“These are big, complex companies,” says White. “They have numerous product lines across multiple geographies, and their performance is impacted by many external factors.”

Traditional approaches often struggle to predict outcomes for such companies since no single product line dictates success, he explains – highlighting precisely the type of inefficiency that edge funds aim to exploit.

Currently, Regents Gate focuses on developed markets – specifically Europe, the US, and Japan – as these regions are liquid and well understood by the firm and its strategy.

“We don’t cherry-pick, but we focus on where we do a good job and we’ve done a very good job historically,” says White.

For now, Regents Gate has not publicly disclosed its returns.

While mega-funds continue to dominate hedge fund flows and startup numbers decline, a quiet revolution is taking place in the industry’s margins. Investors are increasingly hunting specialised managers who can fill precise portfolio gaps – from employee wellness to sustainable living. 

These emerging niche strategies aren’t just surviving in the shadow of multi-strategy giants; they’re thriving by targeting unexploited market inefficiencies and emerging secular trends. The series would explore how these specialised funds are carving out their space in an industry typically associated with scale, examining their unique value propositions, challenges, and the investors backing their vision.

Some strategies aren’t new, but what gives them an edge is how they are applied. Such is the case with Regents Gate Capital, co-founded by Joshua White, Yi-Sung Y, and Dane Vrabac. By integrating artificial intelligence into a traditional market-neutral approach, they’ve created a unique investment proposition in an already crowded hedge fund landscape.

It’s been just over a year since Regents Gate launched, employing a fundamental equity market-neutral strategy that exemplifies the edge fund approach.

The investment methodology involves taking long and short positions in stocks based on fundamental analysis, with the goal of remaining neutral to overall market movements. White explains that the strategy prioritises stock-specific risks over broader market factors, creating a differentiated offering particularly attractive to pension funds seeking uncorrelated returns.

This playbook, pioneered by hedge fund major Citadel, is one White knows well, having spent 15 years as a Portfolio Manager there and at Balyasny Asset Management. However, what sets Regents Gate apart is its integration of custom-built artificial intelligence, which the firm claims enables predictions with 70–80% accuracy.

“We’ve taken a proven strategy and evolved it by incorporating more data, making us more informed, more predictive, and more accurate,” says White.

The AI models assess stocks by analysing over 1.5 million data features, including business trends, using an average of 100 data points per stock to forecast performance – establishing a technological edge in a strategy typically dominated by traditional fundamental analysis.

But, whilst AI plays a central role in the investment process, human oversight is present at every step, curating data features and setting key performance indicators (KPIs). The final decision always rests with the team.

“We review trades daily to ensure the most up-to-date fundamentals are reflected in our portfolio, all whilst maintaining tight risk controls,” says White.

The depth of AI-driven analysis aligns well with Regent Gate’s portfolio, which is 90% composed of industrial companies – a sector defined by its numerous moving parts – with consumer and technology firms making up the remaining 10%.

“These are big, complex companies,” says White. “They have numerous product lines across multiple geographies, and their performance is impacted by many external factors.”

Traditional approaches often struggle to predict outcomes for such companies since no single product line dictates success, he explains – highlighting precisely the type of inefficiency that edge funds aim to exploit.

Currently, Regents Gate focuses on developed markets – specifically Europe, the US, and Japan – as these regions are liquid and well understood by the firm and its strategy.

“We don’t cherry-pick, but we focus on where we do a good job and we’ve done a very good job historically,” says White.

For now, Regents Gate has not publicly disclosed its returns.

While mega-funds continue to dominate hedge fund flows and startup numbers decline, a quiet revolution is taking place in the industry’s margins. Investors are increasingly hunting specialised managers who can fill precise portfolio gaps – from employee wellness to sustainable living. 

These emerging niche strategies aren’t just surviving in the shadow of multi-strategy giants; they’re thriving by targeting unexploited market inefficiencies and emerging secular trends. The series would explore how these specialised funds are carving out their space in an industry typically associated with scale, examining their unique value propositions, challenges, and the investors backing their vision.

Veteran hedge fund manager Richard Perry is making a return to the industry, nearly a decade after closing Perry Capital in 2016, with the 70-year-old joining distressed credit specialist Olympus Peak Management as a partner, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing the return of the former Goldman Sachs merger arbitrage specialist, who founded Perry Capital in 1988 and built it into a $15bn fund at its peak. After three consecutive years of losses and client outflows, he shut down the firm but expressed hope that his legacy would continue.

Now, Perry is teaming up with Olympus Peak founder Todd Westhus – a former Perry Capital executive – and Matt Englehardt, another long-time colleague, to launch a new distressed credit fund. The trio are raising up to $500m, with plans to co-manage the investment committee.

Westhus, who launched Olympus Peak in 2018, was instrumental in some of Perry Capital’s most successful trades, including: a $2bn profit from shorting subprime mortgages during the 2008 financial crisis; a $600m gain on Argentine bonds; and successful bets on Fannie Mae and Freddie Mac securities in 2010.

At Olympus Peak, Westhus has continued that success, profiting from the bankruptcies of Latam Airlines, crypto exchange FTX, and PG&E. The firm’s trade claims fund, launched in 2021, has generated low double-digit net returns, with a win rate exceeding 90%, sources said.

Veteran hedge fund manager Richard Perry is making a return to the industry, nearly a decade after closing Perry Capital in 2016, with the 70-year-old joining distressed credit specialist Olympus Peak Management as a partner, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing the return of the former Goldman Sachs merger arbitrage specialist, who founded Perry Capital in 1988 and built it into a $15bn fund at its peak. After three consecutive years of losses and client outflows, he shut down the firm but expressed hope that his legacy would continue.

Now, Perry is teaming up with Olympus Peak founder Todd Westhus – a former Perry Capital executive – and Matt Englehardt, another long-time colleague, to launch a new distressed credit fund. The trio are raising up to $500m, with plans to co-manage the investment committee.

Westhus, who launched Olympus Peak in 2018, was instrumental in some of Perry Capital’s most successful trades, including: a $2bn profit from shorting subprime mortgages during the 2008 financial crisis; a $600m gain on Argentine bonds; and successful bets on Fannie Mae and Freddie Mac securities in 2010.

At Olympus Peak, Westhus has continued that success, profiting from the bankruptcies of Latam Airlines, crypto exchange FTX, and PG&E. The firm’s trade claims fund, launched in 2021, has generated low double-digit net returns, with a win rate exceeding 90%, sources said.

Momentum-driven hedge funds are facing a brutal start to 2025 as shifting economic conditions and geopolitical tensions trigger sharp reversals in previously high-flying trades, according to a report by Bloomberg.

The once-reliable strategy of riding market trends – favouring US tech stocks and betting on US economic outperformance – has been upended, leading to widespread losses across systematic and discretionary hedge funds.

The report cites Societe Generale’s CTA Index as showing that trend-following hedge funds, which typically trade futures based on prevailing price movements, are down 4.3% year-to-date, marking their second-worst start to a year since 2014. Equity-focused momentum strategies have suffered even steeper drawdowns, with one gauge falling 21% in just four weeks up to 10 March, one of the most abrupt declines on record.

The turbulence has also hit exchange-traded funds (ETFs) tracking momentum trades, with BlackRock’s $14bn iShares MSCI USA Momentum Factor ETF seeing $800m in outflows, the largest single liquidation in two years, as investor sentiment toward high-priced US equities soured.

“You’ve got de-risking at the same time as fundamental weakening, at the same time as geopolitical uncertainty,” said Adam Singleton, CIO of external alpha at Man Group, the world’s largest listed hedge fund. “When all of that converges, momentum strategies take a hit.”

Momentum strategies, which profit from extended trends in asset prices, have been caught off guard by sudden reversals across a range of asset classes with once-dominant AI and tech names seeing pullbacks as interest rate concerns and trade risks mount.

The White House’s tariff threats against China, Mexico, and Canada have also led to whipsawing in agricultural markets, erasing early-year gains in corn and soybeans and pressuring commodity-focused hedge funds, while short positions in the Japanese yen – a consensus trade – have been squeezed as renewed concerns over the US economy drove a dollar decline.

The pain has been widespread, affecting both time-series momentum (which follows price trends) and cross-sectional momentum (which bets on relative outperformance within asset classes). According to Hedge Fund Research, 50 of 86 fast-money hedge fund indexes posted losses in February.

Even some of the biggest multi-manager hedge funds, which typically seek uncorrelated returns, struggled as crowded trades unwound. Mulvaney Capital Management, a trend-following fund that surged 83% in 2024, lost 13% in February. Meanwhile, Transtrend’s enhanced risk trend strategy dropped 10% amid commodity market volatility.

Momentum-driven hedge funds are facing a brutal start to 2025 as shifting economic conditions and geopolitical tensions trigger sharp reversals in previously high-flying trades, according to a report by Bloomberg.

The once-reliable strategy of riding market trends – favouring US tech stocks and betting on US economic outperformance – has been upended, leading to widespread losses across systematic and discretionary hedge funds.

The report cites Societe Generale’s CTA Index as showing that trend-following hedge funds, which typically trade futures based on prevailing price movements, are down 4.3% year-to-date, marking their second-worst start to a year since 2014. Equity-focused momentum strategies have suffered even steeper drawdowns, with one gauge falling 21% in just four weeks up to 10 March, one of the most abrupt declines on record.

The turbulence has also hit exchange-traded funds (ETFs) tracking momentum trades, with BlackRock’s $14bn iShares MSCI USA Momentum Factor ETF seeing $800m in outflows, the largest single liquidation in two years, as investor sentiment toward high-priced US equities soured.

“You’ve got de-risking at the same time as fundamental weakening, at the same time as geopolitical uncertainty,” said Adam Singleton, CIO of external alpha at Man Group, the world’s largest listed hedge fund. “When all of that converges, momentum strategies take a hit.”

Momentum strategies, which profit from extended trends in asset prices, have been caught off guard by sudden reversals across a range of asset classes with once-dominant AI and tech names seeing pullbacks as interest rate concerns and trade risks mount.

The White House’s tariff threats against China, Mexico, and Canada have also led to whipsawing in agricultural markets, erasing early-year gains in corn and soybeans and pressuring commodity-focused hedge funds, while short positions in the Japanese yen – a consensus trade – have been squeezed as renewed concerns over the US economy drove a dollar decline.

The pain has been widespread, affecting both time-series momentum (which follows price trends) and cross-sectional momentum (which bets on relative outperformance within asset classes). According to Hedge Fund Research, 50 of 86 fast-money hedge fund indexes posted losses in February.

Even some of the biggest multi-manager hedge funds, which typically seek uncorrelated returns, struggled as crowded trades unwound. Mulvaney Capital Management, a trend-following fund that surged 83% in 2024, lost 13% in February. Meanwhile, Transtrend’s enhanced risk trend strategy dropped 10% amid commodity market volatility.

Hedge fund performance dipped last month with a weighted average return of -0.3% after a strong start to the year, with several strategy types – including commodity and equity strategies – experiencing a negative month, according to the latest data from asset servicer Citco.

Nonetheless, YTD the weighted average return for hedge funds still stood at 3.7%, and demand from investors was strong, with inflows climbing month-on-month.

All-in-all, some 55% of hedge funds administered by Citco achieved positive returns in February 2025.

Global macro funds led the way with a weighted average return of 2.2%, followed by event-driven funds at 0.2%. All other funds were negative, with a multi-strategy funds performing worst with a weighted average return of -0.7%.

Asset under administration categories also showed diminished performances across the board, with mid-sized funds performing the best. Those with AUA between $500m and $1bn saw a 0.3%, while funds with $1bn to $3bn in assets were up 0.1%. The largest funds, with over $3bn, performed worst, achieving -0.6% weighted average return.

The rate of return spread rose as the difference between 90th and 10th percentile fund returns fell back to 7.4%, from 8.5% in January.

In terms of net inflows, February was a strong month, reaching $3.1bn overall, as investor demand continued.

Funds in the Americas ($2.7bn) and Europe ($1.5bn) both saw positive net inflows in February; with a net outflow of $1.2bn in Asia.

Treasury payments processed by Citco, meanwhile, came in at over 50,000 once again, maintaining the strong start to the year, with a 14% year-on-year increase from February 2024 to reach 53,765.

Hedge fund performance dipped last month with a weighted average return of -0.3% after a strong start to the year, with several strategy types – including commodity and equity strategies – experiencing a negative month, according to the latest data from asset servicer Citco.

Nonetheless, YTD the weighted average return for hedge funds still stood at 3.7%, and demand from investors was strong, with inflows climbing month-on-month.

All-in-all, some 55% of hedge funds administered by Citco achieved positive returns in February 2025.

Global macro funds led the way with a weighted average return of 2.2%, followed by event-driven funds at 0.2%. All other funds were negative, with a multi-strategy funds performing worst with a weighted average return of -0.7%.

Asset under administration categories also showed diminished performances across the board, with mid-sized funds performing the best. Those with AUA between $500m and $1bn saw a 0.3%, while funds with $1bn to $3bn in assets were up 0.1%. The largest funds, with over $3bn, performed worst, achieving -0.6% weighted average return.

The rate of return spread rose as the difference between 90th and 10th percentile fund returns fell back to 7.4%, from 8.5% in January.

In terms of net inflows, February was a strong month, reaching $3.1bn overall, as investor demand continued.

Funds in the Americas ($2.7bn) and Europe ($1.5bn) both saw positive net inflows in February; with a net outflow of $1.2bn in Asia.

Treasury payments processed by Citco, meanwhile, came in at over 50,000 once again, maintaining the strong start to the year, with a 14% year-on-year increase from February 2024 to reach 53,765.

Digital asset investment products saw a fifth consecutive week of outflows last week, totalling $1.7bn, and bringing the total outflows over this negative run to $6.4bn, according to the latest Digital Assets Fund Flows Weekly report from CoinShares.

Bitcoin saw a further $978m outflows, bringing total outflows over the last five weeks to $5.4bn.

Binance meanwhile, saw almost all its AuM wiped out by a seed investor exit, leaving the firm with just $15m in assets under management.

Digital asset investment products saw a fifth consecutive week of outflows last week, totalling $1.7bn, and bringing the total outflows over this negative run to $6.4bn, according to the latest Digital Assets Fund Flows Weekly report from CoinShares.

Bitcoin saw a further $978m outflows, bringing total outflows over the last five weeks to $5.4bn.

Binance meanwhile, saw almost all its AuM wiped out by a seed investor exit, leaving the firm with just $15m in assets under management.