Caxton and Kirkoswald hedge funds are earning lower rates

Mr Law’s London, located in Caxton, one of the oldest and well-known funds, has grown more than 3% in its Global Fund since it started last week, with a return of 7% this year.

Mr Coffey gained 5.2% last month in New York-based Kirkoswald Capital Partners, a hedge fund that started in 2018 after retiring.

Like most macro traders – fund managers who bet on bonds, currencies and equities – both Mr Low and Mr Coffey are betting on bond prices. Such assets were withdrawn in anticipation of further easing of monetary policy by central banks to combat the economic damage caused by the coronavirus and as investors sought refuge from the stock route last week.

Revenues at the biennium fell from 1.35% last week to 0.83% as of Monday and fell briefly below 0.75% after Tuesday’s surprising fall in U.S. Federal Reserve interest rates by 0.5 percentage points . Yields fall as prices rise. Revenues from the 10-year US Treasury note, meanwhile, fell from 1.47 percent last week to a low of 1.02 percent on Tuesday.

The profits are paid back to Mr. Coffey, who manages nearly $ 2 billion in assets, up from over 6 percent this year. Last year, it reported gains of 28 percent.

Funds are also accumulated that rely on instability. The Vix index – known as the stock market’s “calibration of fear” – jumped from 17.1 percentage points last week to nearly 50 at one stage last week. The S&P 500 dropped 11.5% this week, although it has recovered about 2% so far.

One River Asset Management, which is based in Greenwich, Connecticut, reported a 17.2% gain in its long-term volatility fund last week, with gains of about 14.5% this year. Dynamic Convexity’s computer-managed fund reached 7.8% last week, with gains of 8.2% this year.

The profits come at a time of testing hedge funds, many of which have made bets to raise share prices. Equity hedge funds dropped an average of 3.8% in February, according to HFR.

The $ 4.1 billion Man Group AHL Evolution fund, which relies on niche market trends such as emerging market interest rates and German power, fell 3.8% last month, down 3%. , 9 percent this year. The $ 6.3 billion fund, which uses machine learning and other techniques for trading volatility, stocks and other assets, lost 3.7% last month and dropped 3.4% this year.

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