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☆ Why Goldman Sachs alumni are being hoovered up by elite hedge funds like Citadel and Millennium
▼ + stars: | 2023-03-21 | by ( Alex Morrell | ) www.businessinsider.com time to read: +14 min

In November, one of the world's most consequential hedge funds announced a shake-up at the top of its power structure. In an internal memo, the founder of Millennium Management, Izzy Englander, said that Bobby Jain would be vacating the co-CIO role. "You can't readily find that managerial experience at other hedge funds and Goldman is a perfect place to look for those people." 8 former Goldman Sachs leaders are now Millennium execsEnglander isn't alone — firms rarely are in the copycat world of multistrats. In a statement to Insider, Abbey Collins, a spokesperson for Goldman Sachs, said, "Goldman Sachs has always been and remains a talent magnet.

☆ Performance for top hedge funds including Citadel, Millennium, Point72 just dropped. An unlikely winner is at the top of the pile.
▼ + stars: | 2023-03-03 | by ( Alex Morrell | ) www.businessinsider.com time to read: +2 min

February performance figures show a mixed-bag at the top multi-strategy hedge funds. Citadel, continuing its winning streak, is up 2.8% so far, while Millennium is up just 0.5%. Some of the largest multi-strategy hedge funds had killer years in 2022 while much of the industry struggled. An unlikely winner is off to a torrid start after a challenging year in 2022: ExodusPoint is up 2.9% through February on the back of a 2% gain during the short month, according to people familiar with the matter. Citadel has continued its winning streak after record-breaking performance in 2022, up 2.8% this year, sources told Insider.

☆ How big hedge funds would trade sticky inflation
▼ + stars: | 2023-02-16 | by ( Nell Mackenzie | ) www.reuters.com time to read: +5 min

LONDON, Feb 16 (Reuters) - Hedge funds, pinning little hope on central banks' attempts to cool inflation, are spotting ways to profit from climbing interest rates. Five prominent hedge funds shared five ideas using five different asset classes to profit from inflation so pugnacious it might force the Federal Reserve to keep interest rates higher for longer. Lancaster favours a trade selling long-term borrowing costs against shorter-term ones, on the view that the spread between them will decline. "Concern now for markets is that reacceleration of the economy will lead to higher terminal rates," said Lancaster. Buying U.S. long-dated natural gas futures for these reasons and also, he added, "in an inflationary cost/wage environment looks compelling."

Spreads indicate the premium investors demand to hold corporate bonds rather than safer government debt. However, some investors expect credit spreads may widen again to reflect a recession potentially ahead. Hedge funds and some asset managers short credit, meaning they are betting on a fall in a bond's price, by buying products like credit default swaps (CDS), which rise in value if the risk of a credit default event increases. Primary markets indicate there is no lack of demand for corporate bonds. They expect credit spreads to widen in the first half of this year.

☆ Hedge fund returns are rolling in. Here's how industry powerhouses like Citadel, Millennium, and Point72 performed in 2022.
▼ + stars: | 2023-01-06 | by ( Alex Morrell | ) www.businessinsider.com time to read: +2 min

Hedge funds had a dismal year in 2022, but some firms still produced exceptional returns. Ken Griffin's Citadel had record revenues of $28 billion, as well as a 38.1% return from its main fund. Cliff Asness' AQR had a 43.5% return in its oldest fund and record results in 12 other funds, too. 2022 was a dismal year for the hedge fund industry. A few industry stalwarts — AQR, Citadel, and Rokos Capital— had record years.

A majority of the 10 global asset and hedge fund managers surveyed by Reuters said commodities are undervalued and should thrive as global inflation stays elevated in 2023. Preqin said just 915 hedge funds were launched in 2022, the lowest in 10 years. "It's the perfect environment for macro hedge funds: central bank policy divergence, interest rate differentials, geopolitical tension, bottlenecks and each country on its own. Macro hedge funds led the industry performance through November, according to financial data firm HFR, up roughly 8%. Lyons is keen to allot more to macro hedge funds and also thinks there are good opportunities in corporate credit.

☆ Behind a Wall Street headhunter's rapid ascent lie accusations of harassment and abuse
▼ + stars: | 2022-12-21 | by ( Alex Morrell | ) www.businessinsider.com time to read: +38 min

"It was a complete whirlwind, and it felt too good to be true," Morrison told Insider. "Everyone is given a calendar reminder of when they have to submit a review," one former employee told Insider. Durlston told Insider she wasn't a credible source given the acrimonious nature of her departure from Durlston. "Everyone gets pretty loose at these events," a former employee told Insider, noting the availability of alcohol throughout the day. Bahram told Insider this was not a prohibition but merely a suggestion that it would not be an appropriate arrangement.

☆ Schonfeld is rolling out a team focused on credit in another sign of Wall Street's rising interest in debt investing
▼ + stars: | 2022-10-31 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Everybody wants to be a lender these daysStop me if you've heard this before, but a Wall Street firm wants to invest in debt. Schonfeld Strategic Advisors, the $14 billion family-office-turned-hedge fund is building out a new group focused on credit within its macro trading business, Insider reports. A general rule on Wall Street is that firms like to build businesses around complex things. A simple process means it is easily repeatable by someone else, which means more competition, which means smaller margins, which means less profit. The SEC issued $2.2 billion in fines on public companies, including 13 fines larger than $100 million, during its 2022 fiscal year, The Wall Street Journal reports.

☆ $14 billion Schonfeld is launching a new credit unit as the hedge fund continues its growth tear
▼ + stars: | 2022-10-28 | by ( Alyson Velati | ) www.businessinsider.com time to read: +3 min

$14 billion Schonfeld Strategic Advisors has rolled out a credit unit within its new macro trading business that launched earlier this year. Silverman and Aubrey joined in July and August, respectively, following Anchorage shutting its $7.4 billion hedge fund last December. The expanding credit business is part of Schonfeld's recent growth tear. In January, the firm is rolling out long/short credit strategies across the credit quality spectrum in the US and plans to add APAC and EMEA strategies over time. The HFRI Asset Weighted Index gained 1.1% for September, increasing the year-to-date return to 3.8%, according to Hedge Fund Research data.

☆ That nondescript building on the side of the highway is the newest gold mine Wall Street is trying to tap
▼ + stars: | 2022-10-20 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

But first, inside the latest Wall Street investment trend that's offering double-digit returns. Meet Wall Street's newest gold mine. So why should you care about Wall Street's sudden interest in warehouses? To read more about Wall Street's appetite for warehouses, check out the full story here. PE firms have started buying up stakes in law firms.

☆ A $14 billion NYC-based hedge fund is trying a different approach to getting people into the office— opening a suburban hub where its traders and managers live
▼ + stars: | 2022-10-19 | by ( Alyson Velati | ) www.businessinsider.com time to read: +4 min

Hedge fund Schonfeld has opened an office in Summit, New Jersey after surveying staff. $14 billion Schonfeld Strategic Advisors is taking a different route from other Wall Street firms to get their employees into the office and to attract talent in the long run. The family-office-turned-hedge fund has been on a growth tear since Ryan Tolkin took over as chief executive at the beginning of 2021. Schonfeld employees are typically in the office three days a week but this can vary across teams. "By accessing a broader talent pool, we will naturally continue to grow in each of these offices," Tolkin, who is also the firm's chief investment officer, told Insider.

☆ $14 billion hedge fund Schonfeld is focused on hiring as underperforming shops face a shakeout
▼ + stars: | 2022-09-19 | by ( Alyson Velati | ) www.businessinsider.com time to read: +4 min

The hedge fund industry in the early days of a consolidation wave, according to headhunter Ilana Weinstein. The writing is on the wall for hedge funds whose performance have taken massive hits over the last few months. The S&P 500 and the average hedge fund, according to Hedge Fund Research, dropped 18% and 4% year to date, respectively. To stay competitive amid consolidation in the hedge fund industry, Tolkin said $14.1 billion Schonfeld Strategic Advisors is looking to attract talent from different backgrounds and that can provide different ideas. This will help the firm become one of the "winners" amid the industry consolidation, Tolkin said.

☆ Fear and loathing on Wall Street: Inside the paranoid, hyper-competitive onslaught to prevent quant traders from defecting to rivals
▼ + stars: | 2022-07-31 | by ( Alex Morrell | ) www.businessinsider.com time to read: +23 min

Current and former employees at prominent quant trading operations spoke to Insider anonymously for this story, citing fear of legal reprisals. "At the NSA, the penalty for leaking is twenty-five years in prison," Simons liked to tell employees, according to Gregory Zuckerman's book "The Man Who Solved the Market." In the early 2000s, quant noncompetes were narrower and shorter — six to nine months was industry standard, quant recruiters who had to navigate these obstacles told Insider. But it has aggressively pursued employees it believes have crossed the firm, according to court filings and media reports. Absent such changes, quant noncompetes will likely continue to proliferate with little resistance from employees.

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☆ How a former Goldman Sachs whiz kid living in Puerto Rico exploited a generational shift in investing to become one of Millennium's most profitable traders
▼ + stars: | 2022-01-24 | by ( Alex Morrell | Bradley Saacks | ) www.businessinsider.com time to read: +11 min

Millennium has dominated the index-rebalance trade thanks to Glen Scheinberg, 35, and his SRBL team. One of the hottest trading strategies in recent years has required an intense fixation on some of Wall Street's supposedly dullest financial products: index funds and exchange-traded funds. The SRBL team was born from a Goldman Sachs trading deskIn 2014, Millennium poached 27-year-old Scheinberg from Goldman Sachs' program-trading desk — the team at Wall Street banks that trades baskets of stocks using algorithms. For Scheinberg's team, 2020 wasn't a one-off. Millennium's prodigy decamps to paradise for tax savings and bird-watchingDespite its success, much about the SRBL team remains shrouded in mystery.

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