Hedgeweek Features

Hedge fund Point72 has hired Kendall Jager, a former Millennium data scientist and one of Forbes’ “30 Under 30” alumni, as Head of AI for Investment Services, according to a report by eFinancial Careers citing a social media post by Jager.

Jager, 29, joins Point72 in New York, where she is expected to focus on AI-driven automation within the firm’s investment services division, which includes areas such as risk management, compliance, and operations.

Jager, who holds a bachelor’s degree in applied mathematics and economics from Brown University, joined Millennium in 2017, and most recently served as a senior data scientist, playing a key role in developing machine learning and data science capabilities for the firm’s compliance department.

In 2022, Forbes recognised Jager as a “critical member” of the team behind Millennium’s in-house AI and data science platform for compliance.

Point72, led by Steve Cohen, has been expanding its quantitative and AI-driven capabilities, mirroring a broader industry trend

Hedge fund deleveraging accelerated late last week, impacting European stock markets and European hedge fund managers’ returns, with the impact likely to continue this week, according to a report by Reuters, citing a client note from JPMorgan.

The sell-off intensified as European equities declined further on Tuesday, following Monday’s sharp losses tied to US growth concerns and uncertainty over Germany’s fiscal reforms.

JPMorgan noted that multi-strategy hedge funds and stock pickers were forced to liquidate positions, further pressuring the market. Hedge funds shorting European companies also suffered losses as larger funds bought back short positions, driving unexpected stock price gains.
The risk of overcrowding in certain trades remains elevated, the note warned.

Stock-picking hedge funds tracked by JPMorgan finished February down 2.5% and are 1.6% down for 2025 so far. Multi-strategy funds were down 1.7% for February and 1.6% year-to-date.

Activist hedge fund Anson Funds has taken a 9% stake in multi-residential REIT InterRent and is advocating for the company to implement operational and strategic changes, according to a report by Bloomberg citing sources familiar with the matter.

Anson, now the largest shareholder of Ottawa-based InterRent, holds a position valued at approximately CAD130m ($90.2m). Under Canadian regulations, activist investors must disclose holdings above a 10% threshold.

The investment was led by Michael Missaghie, head of Anson’s real estate strategy, and Sagar Gupta, who oversees the firm’s activist initiatives. Anson has reportedly held multiple discussions with InterRent’s management and board regarding potential changes.

InterRent, which manages over 13,000 suites across 126 communities in Ontario, Quebec, and British Columbia, has been evaluating asset sales. CEO Brad Cutsey announced in February plans to divest CAD200m to CAD250m in non-core assets, potentially generating gains of up to CAD140m. The proceeds are earmarked for debt reduction and share buybacks.

RBC analysts, led by Jimmy Shan, recently noted that InterRent trades at a 30% discount to its net asset value (NAV). They view the REIT’s approach of leveraging public-private market arbitrage as a sound strategy. InterRent’s stock has declined 42% from its December 2021 peak and remains largely flat this year after a 29% drop over the past 12 months.

Publicly traded REITs tend to be more liquid and sensitive to short-term market movements, whereas private REITs are valued based on long-term fundamentals, leading to more stable pricing. This market dynamic has contributed to InterRent’s current trading discount relative to its underlying asset value.

Toronto-based Anson Funds manages $1.9bn in assets. In addition to its stake in InterRent, the hedge fund has taken a position in Lionsgate Studios and has engaged with the company on potential value-enhancing strategies.

Hedge funds posted mixed performance in February as financial market volatility surged due to new trade and tariff policies, with equity market declines led by steep drops in the growth and technology sectors, according to HFR.

The HFRI Fund Weighted Composite Index® (FWC) declined by -0.47% for the month, as gains in Relative Value Arbitrage and Event-Driven strategies were offset by declines in Macro and Equity Hedge strategies.

The HFR Cryptocurrency Index posted a sharp decline of -16.8% in February, as managers navigated a surge in volatility and steep declines across bitcoin and other cryptocurrencies.

The HFRI Multi-Manager/Pod Shop Index gained +0.92% for the month as managers also navigated the policy and technology volatility.

Hedge fund performance dispersion expanded in February, as the top decile of the HFRI FWC constituents advanced by an average of +6.5%, while the bottom decile fell by an average of -8.3%, representing a top/bottom dispersion of 14.8 % for the month. By comparison, the top/bottom performance dispersion in January was 12.1%.

In the trailing 12 months ending February 2025, the top decile of FWC constituents gained +31.2%, while the bottom decile declined -15.7%, representing a top/bottom dispersion of 46.9%. Approximately half of hedge funds produced positive performance in February.

Fixed income-based, interest rate-sensitive strategies produced another gain as a cycle of risk-off sentiment drove a sharp decline in interest rates, with the HFRI Relative Value (Total) Index advancing an estimated +0.8% for the month, marking the 16th consecutive monthly gain and the 29th gain in the last 32 months. RVA strategy performance was led by the HFRI RV: FI-Convertible Arbitrage Index, which surged +3.4% for the month, followed by the HFRI RV: Volatility Index, which added +1.1%.

Event-Driven (ED) strategies, which often focus on out-of-favour, deep value equity exposures and speculation on M&A situations, also gained in February, effectively navigating the trade/tariff volatility, with the HFRI Event-Driven (Total) Index advancing +0.3% for the month. ED sub-strategy performance was led by the HFRI ED: Multi-Strategy Index, which jumped +1.4%, and the HFRI ED: Credit Arbitrage Index, which added +1.0% for the month.

Equity Hedge (EH) funds, which invest long and short across specialised sub-strategies, posted a decline for the month as Technology equities suffered steep declines on the trade/tariff volatility, with the HFRI Equity Hedge (Total) Index falling -0.66%. EH sub-strategy gains were led by the HFRI EH: Multi-Strategy Index, which surged +3.1% for the month, and the HFRI EH: Equity Market Neutral Index, which gained +0.3%. These were offset by large declines in Technology-focused hedge funds, with the HFRI EH: Technology Index falling -3.9% in February.

Uncorrelated Macro strategies also declined in February as interest rates and commodities fell, with the HFRI Macro (Total) Index falling -1.5% in February. Macro sub-strategy losses were led by the HFRI Macro: Systematic Diversified Index, which fell -2.8%, while the HFRI Macro: Commodity Index also fell -2.4%; partially offsetting these, the HFRI Macro: Active Trading Index gained +2.0% for the month.

Liquid Alternative UCITS strategies advanced in February, with the HFRX Equal Weighted Index gaining +0.36%, while the HFRX Global Hedge Fund Index added +0.28%. Strategy performance was led by the HFRX Relative Value Arbitrage Index, which gained +0.75%.

“With expectations for a continued rapid pace of policy transitions in the coming months, institutions and investors looking for both opportunistic exposure to these trends, combined with valuable defensive capital preservation, are likely to allocate to funds which have successfully executed their strategies through recent heightened volatility,” stated Kenneth J Heinz, President of HFR.

Activist hedge fund Elliott Management has disclosed a €670m short position in TotalEnergies, representing 0.52% of the French energy major’s stock, according to a report by the Financial Times citing regulatory filings.

The position was taken on Thursday and made public by the French markets regulator on Friday.

The move follows Elliott’s February acquisition of nearly 5% of BP, worth approximately £3.8bn, where the activist fund is pressing for asset divestments and a sharper focus on oil and gas.

TotalEnergies has outperformed its European peers in recent years, maintaining a measured approach to the energy transition under CEO Patrick Pouyanné. The company continues to invest in oil and gas production, with a particular focus on liquefied natural gas as a transitional energy source.

With a market capitalisation of approximately €129bn, TotalEnergies recently reported annual earnings that exceeded market expectations, despite a 21% decline in net income due to weaker commodity and refining markets.

The company is also exploring a dual listing in New York and Paris to attract a US investor base less sensitive to ESG concerns than European counterparts. Additionally, its Integrated Power division continues expanding in renewables, combining gas-fired electricity plants with wind, solar, and battery storage projects.

TotalEnergies remains committed to increasing electricity production from 41 terawatt hours in 2024 to over 100TWh by 2030, despite challenges such as delays to a US offshore wind farm project.

Macro hedge funds are increasingly turning to currency option trades that exclude the US dollar, as they navigate market volatility prompted by concerns over the US economy, according to a report by Bloomberg citing data from the Depositary Trust Clearing Corp (DTCC).

On Monday, options trades involving the euro and yen dominated DTCC activity, with the two currencies making up more than half of all transactions. This shift came as US tech stocks suffered their steepest decline since 2022.

According to Morgan Stanley strategists, long euro positions have surged to their highest levels since 2020, following a strong euro rally. The currency gained momentum after German Chancellor-in-waiting Friedrich Merz pledged to boost government spending.

The Federal Reserve’s cautious stance on interest rate cuts, as signalled by Chair Jerome Powell, has also bolstered demand for non-dollar currency trades. Additionally, the threat of US tariffs next month has heightened concerns about pressure on various currencies.

Hedge funds have increased their exposure to euro trades against Asian and commodity-linked currencies, including the Australian dollar, Canadian dollar, and offshore yuan, according to Mukund Daga, head of foreign-exchange options for Asia at Barclays.

Interest in euro-sterling and euro-Swiss franc options has also risen, according to Sagar Sambrani, a senior foreign-exchange options trader at Nomura International Plc. Euro-dollar options trading volumes on DTCC meanwhile, were down more than 60% from their peak on 5 March, suggesting a cooling in demand for dollar-based trades.

The euro gained as much as 0.8% versus the dollar on Tuesday, further supported by reports that Germany’s Green Party is close to securing a defence spending deal.

Options trades involving the yen against currencies other than the dollar are also gaining traction, according to Sambrani, despite slowing momentum for a stronger yen.

London-based macro hedge fund firm Rokos Capital Management has delivered a 0.57% return so far in 2025, despite a 0.29% decline in February, according to a report by Reuters citing an unnamed source familiar with the matter.

The London-based macro hedge fund, founded by Chris Rokos, has apparently navigated volatile market conditions, which have broadly supported macro-focused strategies.

While global hedge funds posted an average return of 11% in 2024, performance has been more subdued in 2025. As of the end of February, hedge funds have generated 1.3% year-to-date returns, according to hedge fund research firm PivotalPath.

Macro-focused hedge funds, which trade based on economic and geopolitical developments, have performed slightly better than the broader industry, returning 1.6% on average in 2025, per PivotalPath data.

A representative for Rokos Capital Management declined to comment on the fund’s performance.

A quarter of institutional investors are considering switching hedge funds, citing concerns over risk management, underperformance, and fund size, according to a report by Reuters citing the findings of new survey by prime brokerage IG Prime.

Despite strong overall hedge fund performance in 2024 — with global funds delivering an average return of 11%, per data from PivotalPath — some investors remain dissatisfied. So far in 2025, hedge fund returns have reached 1.3% year-to-date as of the end of February, the research firm reported.

IG Prime’s ‘State of the Hedge Fund Industry’ report, based on a survey of 51 institutional clients, found that while 76% of investors plan to stick with their current hedge funds, 24% are preparing to reallocate capital.

The key drivers for switching include: concerns over risk management practices; underwhelming performance; and hedge fund size considerations.

Investor sentiment on fund size though was split. While 40% of those looking to reallocate said they would opt for smaller hedge funds, 25% preferred larger firms with greater resources and capabilities.

Strategy preference also played a major role with stock-trading hedge funds remaining the most popular among investors. Over one-third meanwhile, favoured multi-strategy hedge funds, which diversify across different trading approaches, while only 8% expressed interest in commodity-focused or volatility-based funds.

The US Securities and Exchange Commission (SEC) has filed to dismiss its lawsuit against Silver Point Capital, which accused the hedge fund of failing to prevent a consultant from sharing confidential information with its trading arm, according to a report by Bloomberg.

The move, disclosed in a Thursday filing in federal court in Connecticut, is still subject to final approval by the SEC’s commissioners.

Silver Point, a credit-focused hedge fund, welcomed the resolution, saying in a statement that: “There was absolutely no basis in the evidence or the law for the claims asserted by the SEC, and the SEC should never have filed this action in December 2024”.

The SEC’s lawsuit alleged that Silver Point had inadequate policies to prevent a consultant — an attorney who was a member of a creditors’ committee tied to Puerto Rico’s municipal bond restructuring — from sharing non-public information that could have benefited the fund’s trading arm.

Silver Point, however, denied any wrongdoing, stating that a four-year investigation and the review of 350,000 documents found no evidence that insider information was shared or that the firm engaged in improper trading.

The SEC declined to comment on the case.

EDL Capital, the macro hedge fund led by Edouard de Langlade, has posted a 17% return so far in 2025, significantly outperforming broader hedge fund benchmarks, according to a report by Reuters citing an unnamed source familiar with the matter.

The London-based fund, which deploys macroeconomic strategies across currencies, bonds, and equities, finished February up 5.9%, bringing its year-to-date gains to 6.7% at that point. However, March’s heightened market volatility has propelled the fund even higher, with an additional 10% return recorded so far this month.

The strong performance coincided with major macroeconomic shifts, including: a sharp sell-off in German 10-year bonds, marking their largest weekly yield surge since 1990; the euro’s strongest rally since March 2009 as currency markets reacted to shifting interest rate expectations; and the S&P 500’s biggest weekly decline in six months, as investors recalibrated risk exposures.

EDL’s 17% gain year-to-date stands in stark contrast to the 1.3% average return across the hedge fund industry to the end of February, as reported by hedge fund research firm PivotalPath.

Citadel Securities, Ken Griffin’s market-making sister firm to multi-strategy hedge fund major Citadel has achieved its largest-ever trading revenue, surpassing some of Europe’s biggest banks including Barclays, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing that firm’s full-year trading revenue surged 55% in 2024 to $9.7bn, up from $7.5bn in 2022, using Citadel Securities ahead of major lenders including Deutsche Bank and Barclays, though it still trails US giants such as Goldman Sachs and Bank of America.

The Miami-based firm also more than doubled its net income to $4.2bn, showcasing its continued expansion under CEO Peng Zhao. Zhao had hinted at the firm’s momentum nearly a year ago, citing strong growth from its expansion into new products and global markets.

Citadel Securities operates as a market maker across multiple asset classes, including equities, options, corporate bonds, Treasuries, and ETFs, catering to asset managers, banks, hedge funds, and government agencies.

The firm posted record EBITDA of $5.2bn in 2024, an 87% increase from the previous year. Its net trading capital also jumped to $16bn by the end of 2024, up from $13.5bn a year earlier, driven largely by retained earnings.

In October, Citadel Securities tapped the debt markets to refinance a $4bn term loan and reduce borrowing costs, further strengthening its financial position. By the end of 2024, the firm’s balance sheet totalled $80.4bn in assets, spanning cash, US government securities, equities, and corporate debt.

Hedge fund Millennium Management posted a 1.3% loss in February, marking its worst monthly performance in over six years, with the rare setback being driven by around $900m in losses across two investment teams, according to a report by the Wall Street Journal.

The report cites unnamed sources familiar with the matter as revealing the uncharacteristic loss at the firm, which is known for its disciplined risk management.

Millennium, which manages $75bn across more than 340 semi-autonomous investment teams, has a long history of delivering steady, non-correlated returns, and has experienced only one down year since its founding by Israel “Izzy” Englander in 1989, Millennium hadn’t posted a monthly decline of more than 1% since late 2018.

The February drawdown comes amid choppy market conditions, with volatility fuelled by concerns over slowing economic growth and uncertainty surrounding President Trump’s tariff policies. The broader hedge fund industry struggled as well, with HFR’s composite index down 0.47% for the month, and only half of tracked hedge funds posting gains — a sharp decline from nearly 80% in January.

The bulk of Millennium’s February losses stemmed from index-rebalancing trades, a strategy that has historically delivered billions in gains for the firm. Portfolio managers Glen Scheinberg and Pratik Madhvani, two of Millennium’s top-performing traders, each saw hundreds of millions in losses as bets on which stocks would be added to and removed from market indexes went awry.

Despite its scale, Millennium is known for stringent risk controls. According to previous reports, teams can have their buying power cut in half if losses hit 5%, while a 7.5% drawdown can result in portfolio managers being dismissed, though exceptions can be made.

Hedge funds suffered a significant setback last week, with stock pickers and multi-strategy funds surrendering nearly half of their 2025 gains in a sharp, tech-driven equity selloff, according to a note from Goldman Sachs.

The market turbulence was fuelled by a weakening US economic outlook and uncertainty over former President Donald Trump’s tariff policies, triggering a sharp decline in Wall Street equities. The Nasdaq Composite Index confirmed a correction from its December peak, with technology, media, and telecommunications stocks — where hedge funds had highly concentrated long positions — bearing the brunt of the decline.

A separate JPMorgan note confirmed that global hedge funds entered the week heavily long on tech and growth stocks, exacerbating the selloff’s impact. The S&P 500’s technology sector has now posted an 8% year-to-date loss, making it the second-worst performer after consumer discretionary stocks, which are down over 9%.

According to Goldman Sachs, hedge funds focused on stock-picking strategies have struggled to stay afloat in 2025. By the end of Thursday’s selloff, US stock-picking hedge funds were down 1.4% on the day, bringing their year-to-date performance to negative 0.5%.

Funds employing multi-strategy approaches, typically designed to mitigate losses across different investment styles, also encountered challenges. Goldman Sachs noted that multi-strategy hedge funds have lost money in 18 out of 29 trading days since 27 January, marking one of the worst streaks on record for this segment.

For International Women’s Day this year, Hedgeweek spoke to Kelly Young, Chief Executive Officer at Acadian Asset Management, about her journey from investment banking to leading a quantitative asset management firm, the progress of gender diversity in finance, and strategies for advancing women’s leadership. Her insights reflect both personal experience navigating a traditionally male-dominated industry and strategic approaches to building inclusive cultures within financial institutions.

At 22, you realised investment banking wasn’t for you and made the shift to asset management. Tell us a bit about your background and what led to that decision? 

I often highlight the two ‘big pivots’ that defined my early career, and in turn, the trajectory I’ve taken over the last 25 years. The first was indeed the shift out of investment banking and into asset management, where I took a position in the portfolio management division. I wanted the exposure to more team-based work and the potential to work on client-facing projects. The second of these pivots was the move from portfolio management into the client side, where I really found my niche, being able to leverage my interpersonal and advisory skills and apply them to strategic relationships and to building and deepening those connections.

The fund management industry has historically been male-dominated. What progress toward gender diversity have you observed across the sector during your career, and where do the challenges remain?

As we know, the pace of progress has been slow. But one of the biggest shifts we’ve seen is the willingness and ability to look more objectively at where we are with gender parity. You can’t manage what you can’t measure, as the saying goes, and being able to zoom out and see the data patterns around these disparities is critical to defining what “progress” looks like.

Across the industry, there have been some materially positive developments, to be sure. Anecdotally at least, we are seeing greater representation of females at the top levels of leadership, which is very encouraging. I can point to several of our peers who have seen women step into executive and C-level roles in just the past few years.

Acadian has grown substantially under your leadership. What do you believe has driven that growth, and how do you maintain a balance between scaling the firm and staying true to its values?

To me, the answer is relatively straightforward. People are our greatest asset, and this ethos anchors everything that we do – from our focus on our clients to our goal of retaining, nurturing, and rewarding the best talent in the industry.

When we ensure that our commitment to our clients, our people, and our talent is at the fore, we make better decisions around the strategic and technological initiatives that will help us scale our growth.

Beyond hiring initiatives, what structural or cultural changes have you seen successful hedge funds implement that genuinely advance women’s leadership? 

Recruiting and hiring  is an important piece to be sure, but for us, it really ‘starts at home’ with a focus on the workforce we have. By that I mean ensuring that we have the right culture in place and that we continually prioritise employee experience, from inclusion and belonging to professional growth and development.

We have an active Women’s Forum at Acadian – a group that provides networking, professional development, and practical support opportunities to our employees. I serve as the executive sponsor which means I’m visible, I’m active, I meet regularly with the forum chairs to offer strategic guidance, and I’m a champion for the work that they do. A key aspect of our Women’s Forum programming is providing platforms for our senior female leaders to share insights on their careers and roles in an open and honest environment – this spurs visibility, role modeling, examples of success, opportunities to build relationships, and candid conversation about the challenges we’re facing.

As big believers in the apprenticeship model, we also rolled out a formal mentoring programme a couple years ago. Our model intentionally pairs senior leaders with more junior colleagues, usually cross-functionally, with the goals of building an authentic connection, sharing industry and business knowledge, and offering career support well beyond the duration of the program. Programme applicants need to be serious about the commitment and clear about their goals. I recently served as a mentor for a couple members of my team that came from diverse backgrounds. I was so impressed by their talents, drive, and openness to gaining new insights that it came very naturally to advocate for these individuals as they continue in their careers, beyond the scope of the program itself.

How can gender diversity improve further? What steps can firms take and what initiatives do you see as important? 

To improve representation, we need to ensure that women have role models in the industry and that we continue to identify and address potential challenges that women face in their careers. There’s no one answer as no journey is the same, but supportive programming (mentoring, coaching, sponsorship, access to senior leadership) can meet individuals where they are.

It also helps to build the talent pipeline and to that end, Acadian has a robust and mature internship program which seeks to cast a wide net in terms of potential candidates and giving high-achieving people access to the industry. We also support and sponsor ongoing professional development and continuing education – qualifications like CFA, the pursuit of advanced degrees in related fields, and broader leadership and skills development such as executive coaching.

Another critical piece is partnering with and supporting organisations that promote and engage women across our industry. This is especially important for women who work on teams with limited gender diversity: they can meet and engage with women outside of their own organisations and use their collective wisdom to advance the industry, one team and one firm at a time.

Quantitative investment strategies have gained significant traction in the hedge fund world. Has the evolution of quant approaches changed the talent landscape, and, if so, how has this technological shift created new opportunities for diverse candidates?

Certainly, the evolution of the industry has opened up a wide range of roles that didn’t exist when I was starting out (digital marketing, data science, client personalisation, marketing analytics, and of course the scads of roles stemming from the AI/data explosion on the investment and research side).

No matter the role, ultimately of course, it comes down to needing to get the best, most qualified candidate in the seat and we won’t compromise on that. But we shouldn’t have to – especially as we consider all facets of diversity in our team. For me this work can and should extend beyond gender and racial diversity and include lesser-discussed areas such as educational and socioeconomic background as well. As the first person in my family to go to college, I appreciate more than most the second-guessing, insecurity, and challenges that can come with trying to clear an invisible hurdle around what the ‘optimal’ candidate should be on paper.

I want to level the playing field because I believe that talent comes from many different areas and disciplines. Casting a much wider net in talent acquisition is going to help us build a team with more cognitive diversity and that leads to healthy debate, a stronger business, and better outcomes for our clients.

For women interested in building a hedge fund career, particularly in quantitative investment, what skills and experiences would you recommend they prioritise? How can they position themselves for success in this evolving landscape?

I’d encourage women interested in the field to think holistically about what they can offer a prospective employer. Of course, an advanced STEM degree is a wonderful asset that will serve anyone looking at quant investing quite well. But remember that it takes a large team, comprised of complementary skillsets, to build a successful investment firm – from client service and sales to ops, corporate, and the list goes on. There are many different pathways for women with diverse skillsets to thrive in this space. I always say that at its core, this is a people business where women are often uniquely suited to excel.

Another point I’d make is that in an environment where flexible working is now regarded as the norm, women shouldn’t discount the value of in-person interaction. Junior and mid-level employees are particularly well positioned to take advantage of opportunities for hands-on learning, networking events, and face time with senior stakeholders. Most of us would agree that a flexible work arrangement can be beneficial on many levels (and can, in fact, open up more pathways for attracting a diverse range of talent), but I’d advise utilising office days to maximise opportunities to develop relationships through both formal and informal settings.

The road to success at a firm, such as Acadian’s, is paved not only with high performance, key accomplishments, and mastery of skills. It can often also entail the hard work of culture-carrying, committee service, and relationship-building (such as mentoring, sponsorship, and advocacy). I’d encourage women at any point in their career to think beyond the contributions that are directly tied to job description and consider how you might contribute in other, more qualitative ways. This can boost your skill set, ensure a broader impact, and set you apart as a true asset to your organisation.

Kelly Young, Chief Executive Officer, Acadian Asset Management – Kelly joined Acadian in 2009 and was appointed CEO in 2023. Kelly had most recently served as Executive Vice President and Chief Marketing Officer, responsible for all aspects of the firm’s client service, business development, and product strategy efforts globally. She previously held the role of Managing Director of Acadian Asset Management (UK) Limited and served for a number of years as a senior relationship manager for European clients. Kelly is a member of Acadian’s Board of Managers, Executive Management Team, and Executive Committee. Earlier in her career, Kelly was the European head of the index fund management business for SGAM Alternative Investments and worked for Northern Trust Global Investments and Barclays Global Investors in senior portfolio management positions. 

Hedge fund Triata Capital posted an impressive 39% gain in February, fuelled by bullish bets on AI software and data centre stocks as advancements at DeepSeek and Unitree Robotics helped drive a broader rally in Chinese equities, according to a report by Bloomberg.

The MSCI China Index jumped nearly 12% last month, extending its gains into March as investors re-evaluated China’s technology sector potential.

Triata, which manages over $1bn in assets, capitalised on the AI rally by taking early positions in GDS Holdings, a data centre operator, when its American depositary receipts (ADRs) were trading at $5 to $6 in early 2024. By February, GDS stock had surged above $40, significantly boosting fund performance, according to an unnamed source familiar with the matter.

Triata’s Chief Investment Officer Sean Ho, a former Susquehanna International Group trader and Tybourne Capital Management executive, has leveraged alternative data — including company hiring trends — to guide investment decisions. The fund continues to hold positions in AI software firms involved in cloud computing and AI-generated video content, which are expected to benefit from China’s expanding AI ecosystem.

Viridian Asset Management also capitalised on the recent surge, posting its best month since inception in August 2024 with a 6% gain. CIO Pascal Guttieres attributed the returns to strategic investments in follow-on share offerings by Chinese tech firms raising capital for expansion.

Event-driven multi-strategy investment firm Taconic Capital is actively raising capital for its latest opportunistic fund, the European Credit Dislocation Fund IV (ECDF IV), according to a report by Institutional Investor, citing sources familiar with the matter.

The new fund will target illiquid, off-the-run credit opportunities across Europe, focusing on smaller, bespoke deals where competition is limited and Taconic’s sourcing expertise provides a strategic edge.

Taconic is particularly eyeing underdeveloped and inefficient markets in Spain and Italy, while also seeing potential opportunities in Germany, the UK, and the Nordic region. The firm believes that economic headwinds and higher interest rates in Europe will create attractive distressed debt and opportunistic lending scenarios.

ECDF IV is expected to invest in deals ranging from $10m to $50m, with a target gross internal rate of return in the mid- to high teens, according to investors.

Taconic has a track record in this space, having previously closed ECDF III in March 2021 with $828m in commitments, capitalising on pandemic-induced credit dislocations. Across all ECDF funds, 89% of invested capital has been deployed in proprietary or low-competition deals, with Taconic maintaining an active leadership role in 95% of its investments.

This marks Taconic’s first new fund launch since April 2024, when it introduced the Taconic Merger Arbitrage Fund. The ECDF platform is led by portfolio managers Keith Magliana and Jaime Lamo de Espinosa, who have overseen all iterations of the fund series.

Founded in 1999 by Goldman Sachs alumni Frank Brosens and Kenneth Brody, Taconic currently manages approximately $7bn, with core strategies spanning opportunistic credit, merger arbitrage, and catalyst-driven equities. The firm is best known for its Taconic Opportunity Offshore Fund, which posted an 8% return in 2024.

The South African hedge fund industry has marked a banner year in 2024, with assets under management (AUM) growing by 34%, reaching ZAR185.1bn as of December 2024 – a significant leap from ZARR138bn seen at the end of 2023, according to a report by CityWire.

This growth comes alongside a record-breaking milestone: the industry saw net inflows surpassing ZAR10bn for the first time, totalling ZAR13.3bn in 2024, more than double the ZARR6.2bn seen in 2023. Retail investors were the driving force behind these robust inflows, underscoring growing confidence in hedge funds as an essential part of investment portfolios.

Speaking at a recent presentation, Hayden Reinders, convenor of the Asisa Hedge Fund Standing Committee, described 2024 as a “phenomenal” year for asset growth, noting that it was the best year recorded in terms of both inflows and performance.

“The retail hedge funds and platforms have seen significant investment by the stakeholders, especially hedge fund managers,” said Reinders. “The industry’s efforts to align hedge funds with daily investment models and platforms have been fruitful.”

South Africa became the world’s first country to implement comprehensive hedge fund regulations in 2015, offering two distinct categories: retail hedge funds and qualified investor hedge funds. Retail hedge funds are subject to stringent regulations regarding investment risks and are open to all investors with a minimum lump sum of ZAR50,000. On the other hand, qualified investor hedge funds require a minimum investment of ZAR1m, targeting investors with a strong understanding of hedge fund strategies and risks.

In 2024, South African retail hedge funds saw a surge in interest, with net inflows of ZAR11.8bn, while qualified investor hedge funds experienced net outflows of ZAR70m.

The most popular hedge fund strategy among both retail and qualified investors was long-short equity, attracting ZAR6.16bn in net inflows from retail investors, with qualified investors contributing ZAR479m.

Multi-strategy funds ranked second, attracting ZAR4bn in net retail inflows and ZAR7.2m from qualified investors.

Hedge funds, including Marshall Wace, Man Group GLG, and AQR Capital, are ramping up short positions against Sainsbury’s as concerns mount over declining sales at Argos, its non-food retail arm, according to a report by the Telegraph.

Short interest in Britain’s second-largest supermarket has surged to 6% of its outstanding shares, the highest level since August 2021 and double the level at the start of January.

Marshall Wace, co-founded by Sir Paul Marshall, is among the hedge funds increasing short bets, according to regulatory filings. US-based AQR Capital, led by billionaire Cliff Asness, and Man Group have also positioned against the retailer.

Sainsbury’s shares have already declined more than 9% in 2024 and are down nearly 20% since September, reflecting investor pessimism.

Analysts point to weak consumer sentiment as a key driver of hedge funds’ negative outlook.

Argos, which sells items such as electronics, toys, and furniture, has been particularly vulnerable as consumers cut back on non-essential purchases, with sales at Argos declining 1.4% in the three months to 4 January, in contrast to a 4.1% rise in Sainsbury’s grocery business. The company attributed the weakness to a soft toy market and subdued demand for furniture and electronics.

Hedge funds shorting Sainsbury’s are also betting against Kingfisher, the owner of B&Q and Screwfix, which is similarly exposed to discretionary spending downturns. Short interest in Kingfisher now stands at 6.3%, making it one of the most shorted stocks on the London Stock Exchange.

Jain Global, the hedge fund founded by ex-Credit Suisse trader Bobby Jain, has added Anthony Davis, a former Citadel Portfolio Manager specialising in convertible bond trading, to its team, according to a report by eFinancial Careers.

Davis, who previously held roles at JPMorgan and Deutsche Bank, was initially expected to launch his own fund after departing Citadel last summer, with reports suggesting he was in the early stages of setting up his own firm. However, instead of going independent, Davis has now opted to join Jain Global, which has been expanding since its launch in July 2023.

Jain Global initially hired aggressively, building out a team of 50 portfolio managers, up from 42 last year. However, recent hiring has slowed, with Davis being one of the few notable additions in 2025, alongside Nicholas Massaro from BlueCrest.

Jain Global posted a 1% return in January.

Market volatility in February dealt a blow to several major hedge funds, including Millennium Management, Citadel, and Jain Global, as crowded trades and unexpected macro shifts disrupted key strategies, according to a report by Bloomberg.

Multi-strategy hedge funds with an equity market-neutral bias suffered some of the biggest setbacks, particularly those overweight in technology and healthcare stocks, its Jain Global down 1%, Millennium Management losing 1.3%, and
Citadel dropping 1.7%.

A key factor in February’s turbulence was index rebalancing strategies, where traders bet on quarterly or semi-annual changes to stock indices. The strategy turned money-losing in February amid shifting investor sentiment.

The downturn also impacted major macro hedge funds. Haidar Jupiter Fund slumped 6.3%, though it remains up 8.6% year-to-date, while Brevan Howard’s BH Master Fund lost 1.6% in February and is down 4.5% for 2025.

Brevan Howard Alpha Strategies, however, gained 0.7%, bringing its year-to-date return to 2.3%.

The backdrop of rising inflation and geopolitical uncertainty, including tariff threats from former President Donald Trump, further exacerbated market volatility.

The so-called Magnificent Seven tech stocks — long a favourite of hedge funds — lost steam in February, as concerns mounted over valuation and AI-driven spending. Meanwhile, European and Asian markets outperformed US equities, with hedge funds focused on Asia gaining 1.9% on average, according to a Goldman Sachs note.