Hedgeweek Interviews

Hong Kong’s derivatives market is experiencing an unprecedented surge, driven by heightened stock market swings and increased hedge fund activity, according to a report by Reuters citing trading data from the Hong Kong Stock Exchange.

As of March 2025, the number of outstanding futures and options contracts on the exchange reached 22 million, marking a 70% increase from last year’s record levels in just three months.

Analysts attribute the rise in derivatives trading to: a rally in Chinese technology stocks, particularly Tencent (0700.HK), Alibaba (9988.HK), and Xiaomi (1810.HK); and hedge funds using derivatives for risk management, especially in response to geopolitical tensions and tariff uncertainties.

“The surge in single stock options activity has been significant,” said Jason Lui, Head of APAC Equity and Derivatives Strategy at BNP Paribas. Call and put options have become a preferred strategy for leveraged bets while controlling downside risk.

Hong Kong Exchanges and Clearing has expanded its derivatives offerings, launching weekly options on the Hang Seng TECH Index and 10 individual stocks to meet growing investor demand.

Stock market volatility has been fuelled by China’s AI advancements, particularly the emergence of DeepSeek, a low-cost AI reasoning model, as well as President Xi Jinping’s rare meeting with tech leaders, which boosted investor sentiment.

In addition, the Hang Seng Index has risen 17% year-to-date, with Alibaba and Xiaomi surging 50% each.

Despite the rally, tariff threats from U.S. President Donald Trump continue to pose risks.

Ocean Arete, a Hong Kong-based $1 billion macro hedge fund, has increased its China equity exposure while maintaining hedges for potential volatility.

“One of the primary uncertainties we’re navigating is the US-China relationship and broader geopolitical risks,” said Yuexin Zeng, Head of Investor Relations at Ocean Arete. “Volatility will likely remain elevated for longer.”

Aspoon Capital, which reported 14% returns in the first two months of 2025, has been using China tech index put options to hedge against potential tariff shocks.

“The market may be too complacent about tariff risks,” warned Ryan Yin, Chief Investment Officer at Aspoon Capital.

According to Nick Silver, Head of Prime Services for Asia Pacific at BNP Paribas, derivatives trading has seen strong momentum over the past six months, particularly for China-related assets.

“Investors have had to become much more comfortable with trading in volatile markets,” he said. “Using derivatives remains the most efficient way to navigate uncertainty.”

Hedge funds are increasingly betting against major tech stocks, with Nvidia (NVDA), Tesla (TSLA), and Advanced Micro Devices (AMD) emerging as their top short targets, according to a report by Reuters citing a Morgan Stanley note released on Thursday.

The investment bank’s institutional equity division reported that Wednesday marked the third-largest day of single-stock selling by hedge funds this year, with the technology sector leading the sell-off.

According to Morgan Stanley, hedge funds predominantly increased short positions in their portfolios while making only slight reductions to long exposures. This shift highlights growing concerns about the stock market’s outlook, following two consecutive years of 20%-plus gains in the S&P 500. The index is down 2.6% year-to-date, reflecting investor anxiety over US trade policy and broader economic headwinds.

The targeted short positions in Nvidia, Tesla, and AMD suggest that hedge funds see select members of the once high-flying “Magnificent Seven” as overvalued.

Except for Meta Platforms (META), most of the Magnificent Seven stocks have underperformed the S&P 500 in 2024. Tesla has fallen more than 31%, while Nvidia is down over 16%. AMD, though not part of the Magnificent Seven, has declined more than 12% this year.

Despite the bearish sentiment, hedge funds closed out short positions in Apple (AAPL) and Alphabet (GOOGL) on Wednesday, suggesting a selective approach to their short-selling strategies.

Data from analytics firm Ortex shows that short interest in the Magnificent Seven stocks has been increasing, though it remains below early-year levels. On Tuesday, short interest in the group rose by 8% to 1.19%, before slightly retreating the next day.

Tesla has been a major target for short sellers, with short interest climbing close to 3%. The company’s shrinking market share in Europe, as reported by the European Automobile Manufacturers Association (ACEA), has added to bearish pressure. Still, Tesla’s stock gained 3.45% on Tuesday, despite the data.

The Fixed Income Clearing Corporation (FICC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), has launched enhanced US Treasury clearing capabilities, introducing new access models and customer margin segregation.

The move comes as market volumes and participation continue to climb, ahead of the 31 March, 2025, deadline set by the US Securities and Exchange Commission (SEC), which has extended mandatory clearing requirements for US Treasury cash and repo transactions.

FICC’s daily clearing volumes have surged past $9tn, with peaks exceeding $10.4tn in late February. This marks a significant rise from $4.5tn before the SEC proposed expanded clearing rules and $7.2 trillion when the rules were finalised in December 2023.

Buyside participation has also increased dramatically. In February, cleared buyside activity through FICC’s Sponsored Service grew 85% year-over-year, with peak volumes exceeding $2tn at the end of 2024. The service now provides the industry with more than $700bn in daily balance sheet capacity, and total balance sheet savings reached $900 billion by year-end.

HSBC’s London-based head of CEEMEA rates trading, Andrew Dinnis, has resigned and is expected to join an unnamed hedge fund once his notice period ends, marking another senior departure from the bank, according to a report by eFinancial Careers.

Dinnis, who has been with HSBC for 14 years, led trading for Central and Eastern Europe, the Middle East, and Africa (CEEMEA) rates. While HSBC has yet to comment on the move, Dinnis also declined to respond to inquiries.

His exit follows HSBC’s bonus payouts last week and comes amid a broader shift at the bank. While HSBC is shutting down its M&A and equity capital markets businesses in Europe and the US, Dinnis’s departure is unrelated to these closures.

Other key figures have also left HSBC in recent weeks. Nils Hansen, a managing director in the US syndicate team, recently departed, while Mark Epley, chairman of the US financial sponsors group, also announced his exit.

Quincy Data, a global specialists launched new Transatlantic Signal Feeds distributing key CME data in London, Frankfurt, and Mumbai, providing market participants with trading indicators of large trade events for key CME futures instruments with minimal delay.

The Signal Feed latency from CME in Aurora, IL to the Slough-LD4 data centre in the UK is 23.x milliseconds one-way, enabling the fastest possible price discovery.

Quincy Data co-founder Stephane Tyc, said: “Our goal is to provide our subscribers with the fastest possible access to essential market data. Quincy leverages a broad range of advanced wireless technologies to ensure global distribution with the lowest latency.”

Quincy Data offers three categories of market data services:
Snapshot Feeds, which distribute normalised market data across more than twenty points of presence worldwide; Raw Feeds, which are optimised for distribution using high-capacity wireless; and Signal Feeds, which provide the fastest means of price discovery to geographically distant markets.

All Quincy Data services are offered on a level playing field, ensuring equal access to the lowest-latency solutions for all subscribers.

Hedge fund Starboard Value has reignited its proxy battle with Autodesk, nominating three director candidates to the engineering and design software maker’s board, including Chief Executive Officer and Founder Jeff Smith, according to a report by Bloomberg.

The move comes as Starboard continues to push for margin growth and cost-cutting measures at the company.

Starboard’s other nominees are Geoff Ribar, former CFO of Cadence Design Systems, and Christie Simons, a senior partner at Deloitte & Touche.

Starboard, which holds a $500m stake in Autodesk, had previously cut its investment by 44% in Q4 2024, according to regulatory filings. The hedge fund argues that Autodesk overspends compared to its software peers and has underperformed the broader market.

Autodesk, with a $58bn valuation, has seen its shares fall over 7% in 2024—outpacing the S&P 500’s 1.8% decline.

In response to Starboard’s renewed push, Autodesk stated that its strategy is working, citing the addition of two independent directors in December. While the company expressed concerns about Starboard’s nomination process, it said it remains open to interviewing the hedge fund’s candidates.

Starboard’s renewed campaign follows a failed attempt last year to push its own board candidates. After losing a legal battle to reopen director nominations, the hedge fund called for leadership changes and expense reductions.

In December 2024, Autodesk responded by appointing two independent directors: John Cahill, former CEO and chairman of Kraft Foods; and Ram Krishnan, COO of Emerson.

The 13-member board is currently chaired by Stacy Smith, a former Intel executive, who also serves on the boards of Intel and Kioxia.

Two senior G10 FX traders have exited Citigroup, with one – John Nihill, a highly regarded FX trader based in Sydney – rumoured to be joining a hedge fund, as the battle for top trading talent intensifies, according to a report by eFinancial Careers.

Sources indicate that Nihill has decided to move into the hedge fund world after nearly a decade at Citi. He was reportedly one of Citi’s top revenue generators in the APAC region.

In London, Citi has also lost Angus Yard, a VP-level FX trader who had been with the bank since 2018. Yard’s next destination remains unclear. His departure follows that of Giles Page, one of Citi’s longest-serving FX managing directors, who retired last week after announcing his exit late last year.

The exits come amid a surge in hedge fund hiring of top FX talent, with firms aggressively expanding their trading desks to capitalise on volatile currency markets. Bloomberg reported in February that banks like Citi and Wells Fargo had been expanding FX trading teams, yet Citi now finds itself needing to backfill unexpected departures.

Citi’s FX division, led by Flavio Figueiredo since 2023, has faced internal scrutiny, with some traders voicing concerns that sales backgrounds are being favored over trading expertise

US activist hedge fund firm Elliott Investment Management has built an £850m short position against Shell, marking the largest disclosed wager against the FTSE 100 oil giant in nearly a decade, according to a report by The Times.

The report cites regulatory filings with the UK’s Financial Conduct Authority (FCA) as revealing that Elliott’s 0.5% short position in Shell is the biggest since 2016, when hedge fund Davidson Kempner targeted the company.

The move comes as Elliott has amassed a near 5% stake in BP, valued at more than £3.5bn, where it is pressuring the company to cut costs and shift strategy. The hedge fund’s short position in Shell, alongside disclosed shorts in TotalEnergies and Repsol, is believed to be part of a broader hedging strategy to mitigate risks tied to its BP investment.

By shorting other major energy stocks, Elliott is protecting itself against sector-wide declines that could impact its BP position.

Elliott’s short disclosure coincided with Shell CEO Wael Sawan’s unveiling of a new cost-cutting and spending strategy aimed at closing the valuation gap between Shell and its US counterparts, Chevron and ExxonMobil.

At the same time, BP CEO Murray Auchincloss is under growing investor pressure to enhance performance and narrow BP’s valuation discount to its US rivals. Last month, Auchincloss abandoned BP’s previous green energy shift, opting to increase oil and gas production – a shift that came just weeks after Elliott’s stake in BP was disclosed.

Founded by Paul Singer in 1977, Florida-based Elliott Investment Management manages nearly $73bn in assets. Known for taking stakes in underperforming companies and pushing for strategic overhauls, Elliott has a history of leveraging the courts and shareholder activism to drive change.

The firm, which operates a major London office led by Gordon Singer, gained notoriety for its 15-year legal battle with Argentina over a debt default, eventually securing a $2.4bn settlement.

Elliott declined to comment on its position.

Hedge funds are snapping up economically sensitive stocks, betting on a rebound after recent selloffs driven by tariff-related recession fears in the US market, according to a report by Bloomberg citing data from the prime brokerage unit at Goldman Sachs.

Last week, hedge funds aggressively bought shares of banks, energy producers, and other cyclical companies at the fastest pace since December. These sectors had been among the hardest hit, with one key index falling nearly 10% from its recent highs amid President Donald Trump’s shifting tariff policies and concerns over U.S. economic growth.

“This year’s weakness in cyclicals was seen by some as an opportunity to buy the dip and re-enter at a better price,” said Jonathan Caplis, CEO of PivotalPath, who noted that fund managers view US financials and traditional energy stocks as less exposed to tariff risks than other sectors.

Signs of a rebound in cyclical stocks are emerging. The KBW Bank Index posted an eight-session winning streak – its longest since 2016 – before retreating on Wednesday as fresh tariff concerns resurfaced. A Citigroup index tracking cyclical stocks against defensive sectors like utilities and healthcare has also clawed back nearly half its recent losses.

If cyclicals continue to recover, it could indicate that investors see the economic impact of tariffs as less severe than initially feared.

Some investors are watching the relationship between cyclicals and defensive stocks, which traditionally act as safe havens during economic uncertainty. Bank of America strategist Jill Carey Hall noted that last week, the bank’s clients were larger net buyers of cyclicals than defensive stocks, signalling that they aren’t positioning for an imminent recession.

However, not everyone shares this optimism. Some market participants still believe tariffs could trigger a US economic downturn, and that markets have yet to fully price in this risk, despite a 7% drop in the S&P 500 from last month’s record high.

Stuart Kaiser, Citigroup’s head of US equity trading strategy, suggested that part of the rebound in cyclical stocks may be driven by expectations that the Trump administration’s tariff policies will be more targeted and less damaging than initially feared.

Schulte Roth & Zabel (Schulte) and Eisenhandler & Co (Eisenhandler) have formed a strategic partnership to deliver a comprehensive compensation consulting and legal services offering tailored to alternative investment managers.

This first-of-its-kind collaboration integrates Eisenhandler’s market-leading compensation consulting and data insights with Schulte’s legal and tax advisory expertise, providing a seamless approach to structuring compensation plans, partnership agreements, succession planning, and other employment-related matters.

Eisenhandler specialises in total rewards consulting and operates MarketLook, a proprietary compensation data platform that aggregates compensation trends across hedge funds, private equity, credit, and real estate investment managers.

Schulte, a law firm focused on alternative investment managers, offers legal and tax guidance on compensation structures, employment agreements, partnership terms, and regulatory compliance.

By combining their expertise, the firms aim to eliminate inefficiencies in the compensation structuring process, ensuring that data-driven recommendations are implemented with a legally and tax-compliant framework from the outset.

The partnership builds on a 15-year working relationship between Schulte and Shelley Eisenhandler, a veteran compensation consultant who launched Eisenhandler & Co in 2023.

According to a press statement, the partnership “removes friction for alternative investment firms when structuring compensation plans, ensuring legal and tax considerations are incorporated early, rather than requiring later revisions”.

Beyond compensation, the collaboration extends to employment law matters, including restrictive covenants, separation agreements, and DEI compliance.

Pleasant Lake Partners, the hedge fund led by Jonathan Lennon, has secured a capital commitment from Millennium Management, marking a significant expansion of its investment mandate, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing that Millennium has allocated at least $2bn in gross market value – including leverage – through a separately managed account (SMA). Sources indicate the funds will be deployed in a new strategy aimed at incubating investment talent.

Pleasant Lake Partners currently manages over $4bn in assets, excluding Millennium’s commitment. The firm invests across public and private markets, with a focus on consumer, telecommunications, media, and technology sectors.

In addition to hedge fund strategies, Pleasant Lake Partners is launching a private equity initiative designed to support companies seeking partnerships with investment firms that prioritise long-term holding periods.

The hedge fund has made high-profile investments, including a stake in L’Occitane, supporting its buyout by chairman Reinold Geiger last July. That deal was backed by Blackstone’s Tactical Opportunities group and Goldman Sachs Alternatives.

The firm, affiliated with Fund 1 Investments LLC, also holds positions in Tile Shop Holdings Inc, and BJ’s Restaurants Inc, according to securities filings.

Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, has been appointed as an advisor to Indonesia’s newly launched $900bn sovereign wealth fund, Danantara, according to a report by Fortune.

The move is part of a broader effort by Indonesian President Prabowo Subianto to bolster investor confidence as he consolidates the country’s state-owned enterprises under a single investment entity.

Dalio joins a high-profile advisory team that includes renowned economist Jeffrey Sachs and former Thai Prime Minister Thaksin Shinawatra. Their appointments come at a critical time for Indonesia, as global investors raise concerns about governance and political interference in Danantara’s operations.

As the founder of Bridgewater Associates, Dalio brings decades of experience in navigating global macroeconomic trends, particularly in emerging markets. His deep ties to China – where he has invested for over 40 years – underscore his expertise in Asian economies, making him a strategic addition to Danantara’s advisory board.

Dalio’s appointment signals an effort to reassure institutional investors, including hedge funds, that Danantara will adhere to global investment best practices. Since the beginning of the year, Indonesia’s financial markets have struggled amid a major selloff, with stocks hitting four-year lows and the central bank intervening to stabilise the rupiah. Investors have been wary of the sovereign wealth fund’s governance structure, as it reports directly to Prabowo, raising fears of political influence in investment decisions.

Dalio’s insights into Asian capital markets come at a time when investors are pivoting away from Southeast Asia and back into China, where equities have staged a strong rebound. His involvement with Danantara could help counteract this trend by positioning Indonesia as a viable investment destination despite recent market volatility.

With Chinese stocks surging in 2024 following years of economic uncertainty, Indonesia faces an uphill battle to attract capital. Danantara, with an initial $20bn investment budget this year across 15-20 projects, aims to revitalise investor interest in Southeast Asia’s largest economy.

For hedge funds and institutional investors watching Southeast Asia, Dalio’s appointment is a crucial development. His macroeconomic insights and risk management expertise, honed through Bridgewater’s flagship Pure Alpha strategy, could shape how Danantara deploys its vast capital pool.

Equity Data Science (EDS), a provider of investment process management software, has strengthened its advisory team with the addition of seasoned industry professionals Perry Boyle, Jay Chandler, Phil Vilhauer, and Vikas Kalra.

The four bring expertise in hedge fund management, investment banking, risk management, and fintech innovation, and all have extensive backgrounds in global finance and technology.

Boyle, CEO of MITS Capital, a defense tech investment bank in Ukraine, previously held leadership roles at Salomon Brothers, Alex. Brown & Sons, and Point72 Asset Management, and was a founding partner of Thomas Weisel Partners.

Chandler, former Senior Managing Director and Head of Equity Syndicate at Evercore, played a key role in building the firm’s equity underwriting business, and also held leadership positions at Merrill Lynch and Bank of America Merrill Lynch, including Head of Global Equity Syndicate.

Vilhauer, former Deputy Head of Global Equities at Citadel and Managing Director and Head of Global Trading at Point72, has deep expertise in global trading, portfolio management, and investment analytics.

Kalra, founder of Reliable Revenue Partners, a fintech and data advisory firm, previously led risk and portfolio analytics teams at MSCI and held senior roles at Cross River, Alkymi, and FXCM.

In a press statement, Greg McCall, Co-Founder and President of EDS, said: “We’re thrilled to welcome Perry, Jay, Phil, and Vikas to our advisory team. Their extensive industry experience will be invaluable as we continue to enhance our platform and drive better investment outcomes for our clients.”

Since its inception in 2012, EDS has supported institutional investors ranging from start-ups to large asset managers and hedge funds. The firm recently launched Nexus, a next-generation risk and portfolio management solution designed to streamline workflows and provide deeper insights for investment teams.

Lazard and Arini Capital Management, the $7.9bn credit-focused hedge fund founded by ex-Credit Suisse star trader Hamza Lemssougue have entered into a strategic partnership to expand direct lending solutions across the EMEA region.

Through the agreement, Arini will gain access to Lazard’s corporate and sponsor advisory network, while Lazard’s clients will be introduced to Arini’s private credit strategies – potentially opening new capital solutions for mid-market borrowers.

The deal marks a notable step for hedge funds deepening their involvement in private credit. Arini’s Europe-focused direct lending fund, set to launch with backing from British Columbia Investment Management Corporation (BCI) and other institutional investors, aims to capitalise on financing gaps in the middle market.

“Arini has deep roots across European and global credit markets where we have been seeing significant convergence between public and private credit,” said Lemssougue in a press statement. “We are excited to partner with Lazard’s sector, country, and product bankers across Europe to provide access to financing opportunities, with the goal of generating strong risk-adjusted returns for our investors.”

Lazard’s move to bolster its private credit capabilities aligns with a broader trend of hedge funds stepping into areas traditionally dominated by banks. The agreement will allow Lazard to enhance its capital solutions offering while providing Arini with a steady pipeline of direct lending opportunities sourced through Lazard’s advisory network.

The deal comes as private credit continues to attract significant institutional capital. The EMEA mid-market lending space is viewed as particularly ripe for expansion, with hedge funds and alternative credit managers stepping in to fill gaps left by traditional lenders amid tighter banking regulations.

“Positioning Arini’s credit investment capabilities alongside Lazard’s origination creates a highly differentiated and scalable approach to pursue European direct lending opportunities, particularly in the core middle market,” said Daniel Garant, EVP & Global Head of Public Markets at BCI.

Under the agreement, Lazard will retain its independence in providing financing advice to clients, while Arini will maintain full autonomy over its investment decisions. The collaboration is expected to provide institutional investors with access to an alternative private credit strategy at a time when the sector is experiencing heightened demand.

An unexpected rise in the cost of equity financing is pressuring some hedge funds and asset managers, while presenting a lucrative opportunity for cash-rich investors, according to a report by Bloomberg.

The financing spreads on S&P 500 Index futures – embedded costs that allow investors to gain stock exposure without purchasing shares outright – have surged in recent months. After hitting record highs late last year, these costs remain above historical norms, even as markets have experienced recent turbulence.

Hedge funds often rely on futures to maintain market exposure while preserving capital. Instead of buying stocks outright, they use leverage, paying a financing spread on top of a risk-free interest rate. As more firms have piled into these trades, competition has driven up spreads, increasing financing costs for money managers.

“The dislocation is very large compared to the spread’s historical range, and the S&P 500 is one of the most canonical, most liquid markets in the world,” said Ashwin Thapar, head of multi-asset class investing at DE Shaw Investment Management.

Despite the S&P 500’s recent correction, which typically alleviates funding pressure, spreads have remained elevated. According to JPMorgan, the three-month implied financing spread on S&P 500 futures has fallen from December’s peak of 1.8% to about 0.6%, yet this remains in the top quintile of the past five years. Long-term financing costs remain stubbornly high.

For institutional investors with available capital, such as pension funds and sovereign wealth funds, these elevated financing spreads offer attractive returns. Firms like Janus Henderson are capitalising on this by engaging in cash-and-carry arbitrage – buying S&P 500 stocks while selling futures contracts against them.

“The pickup of equity financing spreads makes this trade extremely attractive right now,” said Natasha Sibley, a manager on Janus Henderson’s multi-strategy team.

Other hedge funds, lacking the same balance sheet capacity, are turning to alternative plays like trading calendar spreads – betting on changes in financing costs over different maturities. Demand has surged for CME’s Adjusted Interest Rate (AIR) Total Return Futures, with open interest in the product exceeding $255 billion this year.

The persistence of high financing costs suggests a structural shift in equity markets. Regulatory constraints on bank balance sheets limit their ability to provide financing, creating a supply-demand mismatch. As a result, hedge funds must navigate an environment where leverage is more expensive, while large institutional investors stand to benefit.

However, some market participants believe this trend may be temporary. Pete Hecht, head of the North America portfolio solutions group at AQR Capital Management, noted that surging demand for S&P 500 products last year fuelled higher financing costs. With stock market exuberance cooling in 2024, spreads could normalise over time.

While many major hedge funds have struggled in March’s turbulent markets, Chris Rokos’ macro hedge fund has bucked the trend, gaining 3.4% up top the end of last week, according to a report by Business Insider, citing an unnamed source familiar with the firm’s performance.

The $20bn fund is also in positive territory for the year, though exact year-to-date returns remain unclear.

Rokos Capital Management, known for its high-conviction, directional macro trades, has a history of delivering strong returns in volatile environments. The firm made nearly $1bn in a single day following Donald Trump’s 2016 election victory and delivered an impressive 31% return in 2023.

March has proven challenging for many hedge funds, as volatility surged to its highest levels this year due to shifting global trade policies and macroeconomic uncertainty. Brevan Howard, a leading macro player and Rokos’ former firm, suffered losses in its Master Fund earlier in the month, bringing its year-to-date drawdown to over 5%, according to Bloomberg reports.

Beyond macro strategies, multi-strategy powerhouses including Citadel, Millennium, Point72, Balyasny, and Schonfeld also faced setbacks in early March, though industry sources indicate some recovery in recent weeks.

Hedge funds with significant exposure to US Treasury (UST) trades are seeking an exemption from the US Securities and Exchange Commission (SEC) that would enable them to clear repo trades through their own affiliated clearing entities, according to a report by Rick.net.

The move comes as firms prepare for the SEC’s upcoming Treasuries clearing mandate, which is expected to reshape the landscape of UST trading.

The proposed exemption would allow hedge funds to execute trades through one entity and subsequently transfer them internally to another entity for central counterparty (CCP) clearing. This inter-affiliate exemption could help alleviate concerns over limited clearing capacity and provide funds with greater flexibility in meeting the new regulatory requirements.

The SEC’s Treasuries clearing mandate is aimed at bringing increased transparency and risk management to the UST market, but industry participants have raised concerns about the potential strain on existing clearing infrastructure. By leveraging their own clearing entities, hedge funds aim to mitigate operational bottlenecks while maintaining compliance with the new regulatory framework.

Hedge funds and money managers sharply reduced their bullish positions on natural gas last week, marking the steepest decline in a year, as unseasonably warm forecasts threaten to erode demand for the heating fuel, according top a report by Bloomberg.

The report cites data from the Commodity Futures Trading Commission (CFTC) as showing that long-only positions across seven natural gas contracts fell by 65,372 contracts to 626,232 in the week ending 18 March. This reduction pushed net-long positions to their lowest level in over a month, reflecting a bearish shift in market sentiment.

The move comes on the heels of a rise in short positions last week, coinciding with the start of the so-called “shoulder season” – a period between peak winter and summer demand when natural gas consumption typically declines.

Further weighing on sentiment, updated weather forecasts on Friday indicated warmer-than-normal temperatures across much of the US through the end of March, particularly from the Midwest to the East Coast, according to commercial forecaster Maxar Technologies Inc.

Balyasny Asset Management has recruited Johnny Kang, a former Managing Director at Citadel, as a portfolio manager in its Greenwich, Connecticut office, marking another high-profile talent move between the two multi-strategy hedge funds, according top a report by eFinancial Careers.

Kang, who previously served as head of research for Citadel’s convertible arbitrage team, spent four years at the firm’s New York office. Before that, he was a Managing Director in systematic fixed income at BlackRock and spent over seven years as a portfolio manager at AQR Capital Management before taking a break to pursue a PhD at Harvard.

Following Kang’s departure, Citadel reallocated his responsibilities internally and will not seek a direct replacement.

Hedge funds are ramping up their bearish bets on European stocks, with a particular focus on financials, materials, energy, and industrial companies, according to a report by Bloomberg citing data from the prime brokerage unit at Goldman Sachs.

The bankreported that hedge funds were net sellers of European equities for the second consecutive week ending 21 March, extending a broader trend that has seen more short positions than long ones in four of the past five weeks.

The selling pressure has been concentrated in individual stocks rather than broader indices, with hedge funds taking aim at companies in Germany, Italy, the Netherlands, Denmark, and the UK. Among the most heavily shorted sectors were building and construction materials, along with financials – areas that have been particularly vulnerable to macroeconomic headwinds.

In February, asset manager Schroders and home improvement retailer Kingfisher ranked among the most crowded European short positions, according to data from Hazeltree, which tracks hedge fund holdings across 700 asset management firms. Regulatory filings show that hedge funds have since increased their bets against these companies.

Several prominent hedge funds have disclosed new or expanded short positions in March. AKO Capital, Man Group, Kintbury Capital, and Marshall Wace have all placed short bets against Kingfisher, while Kintbury Capital has also opened a short position in Schroders.

Meanwhile, energy services firm Petrofac has emerged as the UK-listed company with the highest proportion of its outstanding shares held in short positions, according to the UK Financial Conduct Authority (FCA). Investment firms Helikon Investments and TFG Asset Management currently hold sizable bets against the company.

Kingfisher, Petrofac, and Schroders all reportedly declined to comment on the short positions, while representatives for Man Group and Marshall Wace also declined to provide statements. AKO Capital, Helikon Investments, TFG Asset Management, and Kintbury Capital did not immediately respond to Bloomberg’s requests for comment.