News round-up: Global Hedge fund net inflows top $23bn; Chorus Capital Launches fifth fund; Citadel alum’s Kodai expands team with new head of quant research

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Global Hedge fund net inflows top $23bn in first three quarters of 2021

Amid increasing volatility, the global hedge fund industry saw positive net inflows of $6 billion in Q3. This means combined total net inflows of $23.7 billion in the first nine months of 2021, according to data from the Citco group of companies (Citco).

Citco’s Q3 2021 Hedge Fund Report found that all hedge fund strategies and most AuA categories on the Citco platform achieved positive returns in Q3.

While the quarter showed relatively good hedge fund performance there was a decline from Q1 and Q2. Funds on the platform delivered a 1.15 per cent overall weighted average return in Q3, versus 8.25 per cent and 6 per cent in Q1 and Q2 respectively.

Declan Quilligan, Head of Hedge Fund Services, Citco Fund Services (Ireland) Ltd, commented: “Despite significant volatility in September, global hedge funds have demonstrated their resilience to achieve positive returns across asset classes, fund strategies and geographies. Net positive inflows to Citco funds and heightened trade volumes have increased the need for Citco’s streamlined, digitised and transparent treasury and accounts payable workflows, which are more important than ever to provide asset managers with the tools they need to grow.”

Larger funds with more than $3 billion of assets under management saw the highest returns, averaging 1.57 per cent in Q3.

The best performing strategy, which delivered a weighted average return of 6.46 per cent, was an event driven strategy. Multi-strategy came in as the lowest performing achieving only a 0.39 per cent return.

For the second quarter in a row, Citco observed a strong correlation between volatility and trading volumes. Q3 volumes were the second highest on record after Q1 2021 resulting from a sharp spike in volatility in September.

Equity and Equity Swaps continued to be the most traded asset classes in Q3. However, in September, the market saw a 36 per cent increase in Fixed Income products, Credit Default Swaps and Interest Rate Swaps.

Chorus Capital Launches fifth fund

The credit risk sharing platform Chorus Capital has launched its fifth fund and is currently raising commitments. This launch follows the firms previous fund raising $1.4bn 9 months ago.

Following the fourth vehicle close, chief executive Gilles Marchesin had said that the fund had proved particularly attractive to pension fund managers who had committed to over 77% of the total funds raised. The fund also had great interest from insurance companies, family offices and endowments.

Publicly available documents reveal that Chorus Capital Fund V has attracted investment from P&V Assurances and EE Pension Scheme.

Citadel alum’s Kodai expands team with new head of quant research

Neville Shah has hired his first head of quantitative research to his 1.5bn Millennium backed start-up based in Chicago.

Ernesto Guridi has most recently worked at Citadel between 2016-2020. He was a quantitative researcher within Citadels global equities division.

Before joining Citadel Guridi spent 6 years at MSCI where in later years he lead a team of consultants focused on portfolio analytics for hedge funds, asset managers and broker dealers.

Guridi spent the previous 6 years as an academic at Mexican University, Tecnologico de Monterrey.

Guridi joins Shah who recently hired Mark Wienkes and Jeff Yamin both of which worked at Citadel for many years.

Carmen Bamford

Head of Event Content, HFM

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