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Multi-Manager Hedge Funds Among Top Winners of COVID-19

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Multi-manager hedge funds are among the top performers in the past two years amid the COVID-19 pandemic, WSJ reported.

Multi-manager funds such as Millennium Management and Citadel have been among the top gainers in the past two years, driving a surge in compensation for top traders as firms seek to boost their workforce outside New York.

The sector’s performance continues to benefit from investors valuing returns coming from specific bets over those that come from tracking an overall index. Millennium has gained 25.6% in the past year, while Citadel grew 19.5% in the first ten months of the year.

Assets in the sector have surged by over $100 billion to $620 billion amid the pandemic, according to data from eVestment. This includes firms such as ExodusPoint, Balyasny, and Pint72.

The sector’s attractiveness is also driven by the consistent returns over long periods, with firms reporting better performances than macro funds such as Rokos Capital and Alphadyne.

Some firms in the sector had recorded initial losses as markets plunged in March 2020 amid the COVID-19 pandemic, ahead of the recovery in riskier assets when the Federal Reserve intervened.

 

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