News round-up: Planned redemptions hit lowest September rates on record, says SS&C; Brevan Howard makes cash injection in AI-focused credit business; Cambrian unveils dual digital trust launch

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Planned redemptions hit lowest September rates on record, says SS&C

Hedge fund redemption notices are down year-on-year, to a ‘very favourable’ 2.45%, according to an indicator from SS&C Technologies.

September’s SS&C GlobeOp Forward Redemption Indicator showed a slight uptick from the previous month, which in August sat at 2.24%, but a decrease on September 2020, which showed planned redemptions at 3.43%.

Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies, said: "This improvement marked the fifteenth consecutive month of year-over-year reduction in monthly redemption notices. Moreover, the 2.45% level of redemptions is the lowest reading for any month of September since the inception of the Forward Redemption Indicator in 2008."

The all-time high for redemptions was 19.27% in November 2008, while the lowest result recorded was in January this year, when just 1.78% of cash was planned to be withdrawn from hedge funds.

SS&C’s indicator represents the sum of forward redemption notices received from investors in hedge funds administered by SS&C GlobeOp on the SS&C GlobeOp platform, divided by the AuA at the beginning of the month for SS&C GlobeOp fund administration clients on the SS&C GlobeOp platform.

Brevan Howard makes cash injection in AI-focused credit business

Brevan Howard have invested in consumer credit technology company, Edge Focus.

The hedge fund giant has invested an undisclosed amount alongside global quantitative trading firm DRW.

Edge Focus said the deal would allow it to further develop its technology, expand the team, and grow its footprint within different fintech asset classes including real estate, autos, and point of sale. The firm focuses on applying machine learning and artificial intelligence strategies to analyse credit.

“We are delighted to partner with Edge Focus, whom we view as an exciting and innovative manager in the field of consumer credit,” said Aron Landy, CEO of Brevan Howard.

“At DRW, we have witnessed first-hand the power of sophisticated technology to disrupt the status quo and drive rapid innovation,” said Adam Garner, DRW Partner. “Edge Focus has a compelling vision for using cutting-edge machine learning techniques to radically change the consumer lending landscape.”

Edge Focus said it would also launch two new institutional investment strategies as part of the deal, enabling the team to form new partnerships with fintech platforms and loan originators.

Cambrian unveils dual digital trust launch

San Francisco-based quant fund Cambrian Asset Management has launched two actively managed systematic Bitcoin and Etherium trusts.

The fund manager said the Cambrian Bitcoin Systematic Trust and the Cambrian Ethereum Systematic Trust were the first of their kind and designed for institutional and accredited individual investors with existing or seeking exposure to Bitcoin or Ethereum.

ThetTrusts feature an actively managed systematic strategy that looks to manage downside risks and maintain substantial upside potential while seeking to defer taxable events for their investors, said Cambrian.

"Demand for digital assets only continues to increase, especially among sophisticated institutional investors and family offices, who, because of the volatility of digital assets, are increasingly looking for a strong track record of active management," said Tony Fenner-Leitao, President of Cambrian.

The trusts will use JP Morgan Chase Bank, N.A. as an initial fund administrator for preparation of NAV on a monthly basis and the preparation of the trusts' annual financial statements. Sudrania Fund Services Corporation will serve as an initial fund administrator for the trust's investor subscription processes, shareholder statement preparation, and calculation of daily NAV.

Stephanie Taylor

Head of Event Content, HFM

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