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Stock & Currency Markets Boost European Hedge Funds in Nov

2024-12-04

London's financial scene witnessed a significant shift in November as global stock and currency markets played a crucial role. The U.S. election win for Donald Trump and the Republicans led to surges in markets, influencing the performance of European hedge funds. Reuters' performance numbers revealed interesting trends. Some hedge funds capitalized on what are termed "Trump trades," which had an impact on tariff-sensitive assets and investment flows. For instance, the $700 million Paris-based Metori Capital Management saw its Metori Epsilon Diversified fund achieve an estimated month-end performance of 4.6% in November, with a 2024 return up to 13.4%. A source familiar with the fund's performance provided these details.In another case, British hedge fund Marshall Wace posted a 2.8% return in its Eureka fund and was up almost 14.5% on the year. The $69 billion hedge fund's Market Neutral Tops fund returned 1.75% in November, contributing to a 21.49% year return, as per a separate source with knowledge of its performance.The $13 billion Winton Capital also showed positive results, with its multi-strategy fund returning 0.3% and adding to an 8.8% performance for 2024. In its Diversified Macro fund, November's return was 0.2%, adding to a 2.9% performance for the year, as stated by a third source.Returns for Capital Fund Management's funds varied. The CFM Stratus Fund had just over 8% return, while the $15.5 billion hedge funds' IS Trends fund achieved 18.88%.JPMorgan's prime brokerage note on Tuesday, seen by Reuters on Wednesday, indicated that global hedge fund performance for November was 1.4% after two months of flat returns. Stock trading hedge funds globally posted around a 2% return, driven by investments in North American stocks.These figures and trends highlight the dynamic nature of the hedge fund industry and its response to major events like the U.S. election.

Unraveling the Impact of U.S. Election on European Hedge Funds

Metori Capital Management's November Performance

The $700 million Paris-based Metori Capital Management's Metori Epsilon Diversified fund saw remarkable growth in November. With an estimated month-end performance of 4.6% and a 2024 return reaching 13.4%, it demonstrated the potential of certain hedge fund strategies during this period. This success was likely influenced by the broader market trends and the "Trump trades" phenomenon. A source familiar with the fund's operations shed light on how these factors combined to drive the performance.Moreover, the consistency in the fund's performance over the years showcases its ability to navigate different market conditions and generate attractive returns for investors.

Marshall Wace's Hedge Fund Performance

British hedge fund Marshall Wace made its mark with a 2.8% return in its Eureka fund and a nearly 14.5% year-on-year increase. The Market Neutral Tops fund also contributed significantly, returning 1.75% in November and adding to a 21.49% year return. This indicates the fund's diverse portfolio and effective risk management strategies. A separate source with in-depth knowledge of the fund's performance emphasized how these results were achieved through careful market analysis and strategic decision-making.Marshall Wace's performance highlights the importance of adaptability and expertise in the hedge fund space.

Winton Capital's Multi-Strategy Fund

The $13 billion Winton Capital's multi-strategy fund returned 0.3% in November, further enhancing its 8.8% performance for 2024. This showcases the fund's ability to combine different strategies and asset classes to generate consistent returns. The Diversified Macro fund also performed well, with a 0.2% return in November adding to a 2.9% year performance. These figures demonstrate the fund's comprehensive approach and its capacity to weather market fluctuations.Winton Capital's success serves as an example of how a well-structured multi-strategy fund can deliver value to investors over the long term.

Capital Fund Management's Fund Returns

Capital Fund Management's funds exhibited a wide range of returns. The CFM Stratus Fund had a just over 8% return, while the IS Trends fund achieved a remarkable 18.88%. This diversity within the company's portfolio reflects the different investment strategies and risk appetites. Different sources provided insights into how these funds performed and the factors that contributed to their results.It shows the complexity and variety within the hedge fund industry and how individual funds can perform differently based on their investment approaches.

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