News round-up: BNP Paribas launches sustainable fixed income fund; Turbulent times for tech trading; Pangea Fund Management secures $85m for crypto HF

News round-up: BNP Paribas launches sustainable fixed income fund; Turbulent times for tech trading; Pangea Fund Management secures $85m for crypto HF

BNP Paribas launches first sustainable thematic fixed income fund

BNP Paribas Asset Management (BNPP AM) has launched a BNP Paribas Sustainable Asian Cities Bond fund.

The Luxembourg-domiciled sustainable thematic fixed income fund will offer investors exposure to a differentiated strategy that is both regional and thematic.

This is the first Asia-focused fixed income strategy in the market classified as SFDR Article 9.

The fund will focus on Asia ex-Japan bonds, to capitalise on a geographic region that is undergoing healthy growth in the issuance of sustainable-labelled bonds.

The fund will contribute to the promotion of sustainable Asian cities to meet the need of increased urbanisation, impacts of physical climate change and inclusive growth.

Turbulent times for tech trading

Hedge funds trading technology companies endured a bumpy start to 2022.

The year started with bets on a slew of blue-chip stocks souring as investors took flight amid fears of rising inflation and interest rates coupled with concerns over US economic growth.

Technology-focused equity hedge funds finished 2021 up around 5%.

This 5% lagged the broader hedge fund industry, which averaged an annual double-digit return of more than 10% in 2021.

Tech stocks had soared during in the initial stages of the Covid-19 pandemic, helping push tech-focused hedge funds to bumper gains of almost %in 2020.

But as the likes of Microsoft, Peloton, Meta and Zoom –all of which thrived as a result of lockdowns and home-working – continue to trend downwards, technology hedge funds have started 2022 in negative territory.

Hedge fund managers continue to keep close tabs on the alpha-generating potential of the rapidly expanding world of cryptocurrencies, blockchains, and other assorted digital assets.

Quantology Capital Management, which runs a systematic long/short market neutral equity strategy trading tech-heavy Nasdaq and NYSE-listed stocks, was among the positive movers earlier this year.

“At Quantology Capital, we do think that the best answer is to think out of the box, and to explore new topics, new themes and new techniques; focusing not on the market itself, but on the market practitioners,” said Julien Messias, Quantology’s co-founder and head of R&D, of the evolving tech investment landscape.

“Our aim is not to build new tools to better understand the markets, but to build new tools that will enable us to better understand what the other practitioners think they think about the markets.” He added.

Pangea Fund Management secures $85m for new crypto hedge fund

Pangea Fund Management, a new company formed by Ryan Watkins and Daniel Cheung, has secured $85 million to start a new crypto hedge fund, according to a report by Bloomberg.

The fund will focus on investments in already successful tokens – a strategy going against the typical digital assets trend which has seen many managers back early-stage projects

Investors including Bain Capital and ParaFi are backing Watkins - a 25-year-old former analyst at Messari Inc, and Cheung, formally of Jennison Associates LLC,

Brad Burnham, co-founder of Union Square Ventures, Apollo Global Management co-founder Josh Harris, have also participated in the funding round.