Hedge funds Brevan Howard, Man Group's AHL and Winton.
From Hedge fund stars profit in global debt crisis
Excerpts:
Brevan Howard's $25 billion Master fund gained 2.2 percent in July, taking year-to-date gains to 4.7 percent, having taken bets on and off the table this year and opted for short-term positions.
"We've been tactically trading all year rather than taking advantage of any big themes," said one source close to the company.
Man Group's flagship $23.9 billion AHL fund, a computer-driven fund that follows market trends, jumped 5.2 percent between July 4 and August 1, helped by long positions in fixed income, silver and gold, and short positions on the U.S. dollar.
And Winton Capital, one of Europe's biggest hedge fund managers with $22.4 billion in assets, saw its flagship fund gain 4.6 percent.
CQS's Credit Long-Short fund rose an estimated 1.64 percent in July, taking year-to-date gains to 4.71 percent, helped by a net short position and bets that sectors such as cyclicals, telecoms and utilities would be hurt by austerity measures taken by indebted governments.
But What Is a Long-Short fund?
Hedge fund managers generate returns via double alpha strategy by identifying overvalued investments as short selling candidates and buying undervalued investments. He has to effectively manage two different portfolios. A long-short hedge fund manager does not manage his portfolio relative to a benchmark, but rather in absolute terms.
A net short position (the value of the shorts would exceed the value of the longs) means that portfolio returns are negatively correlated with overall market returns. Hedge funds will typically have net short positions in bear markets for that sector.
From Hedge fund stars profit in global debt crisis
Excerpts:
Brevan Howard's $25 billion Master fund gained 2.2 percent in July, taking year-to-date gains to 4.7 percent, having taken bets on and off the table this year and opted for short-term positions.
"We've been tactically trading all year rather than taking advantage of any big themes," said one source close to the company.
Man Group's flagship $23.9 billion AHL fund, a computer-driven fund that follows market trends, jumped 5.2 percent between July 4 and August 1, helped by long positions in fixed income, silver and gold, and short positions on the U.S. dollar.
And Winton Capital, one of Europe's biggest hedge fund managers with $22.4 billion in assets, saw its flagship fund gain 4.6 percent.
CQS's Credit Long-Short fund rose an estimated 1.64 percent in July, taking year-to-date gains to 4.71 percent, helped by a net short position and bets that sectors such as cyclicals, telecoms and utilities would be hurt by austerity measures taken by indebted governments.
But What Is a Long-Short fund?
Hedge fund managers generate returns via double alpha strategy by identifying overvalued investments as short selling candidates and buying undervalued investments. He has to effectively manage two different portfolios. A long-short hedge fund manager does not manage his portfolio relative to a benchmark, but rather in absolute terms.
A net short position (the value of the shorts would exceed the value of the longs) means that portfolio returns are negatively correlated with overall market returns. Hedge funds will typically have net short positions in bear markets for that sector.
