Hindsight Capital’s 2020 Was Great. Wasn’t Yours? (Bloomberg)
As the miserable year of 2020 has almost reached its end, it is time to return to the offices of Hindsight Capital LLC. For those unfamiliar with the work of this great, albeit imaginary, hedge fund – which I visit every year at about this time – Hindsight Capital invests with the benefit of a style guaranteed to beat all others year after year: hindsight. All of its trades are placed at the beginning of the year, in full knowledge of what will happen.
Anthony Scaramucci’s Skybridge Capital Pumped About $182M in Bitcoin (Coin Speaker)
For asset managers including Skybridge Capital, an entry into the world of Bitcoin and cryptocurrencies will serve as a wake-up call for existing clients to have a positive disposition towards BTC as well as the new cryptos that will be supported. In the wake of the institutional embrace of Bitcoin (BTC) and digital assets, Anthony Scaramucci’s Investment Management Company Skybridge Capital has reportedly invested as much as $182 million in the first-ever cryptocurrency. According to a CoinDesk report, Skybridge Capital has filed an application to the Securities and Exchange Commission (SEC) for a hedge fund dubbed the Skybridge Bitcoin Fund LP which is set to launch in January 2021.
Human-Run Hedge Funds Trounce Quant Behemoths in Covid Year (Live Mint)
Overall, human-run funds put up some their best numbers in a decade in 2020, with several boldfaced names, including Tiger, Coatue and D1, posting returns in excess of 35%. Turns out, the hedge fund industry’s swashbucklers haven’t been made obsolete by the machines just yet.After years of being outgunned and outclassed by computer-driven quantitative strategies, human stock-pickers climbed back on top in 2020, helped by aggressive bets in technology and the flood of central bank money that buoyed markets. The dizzying gyrations of the pandemic-stricken year humbled even the most sophisticated of quants — notably behemoths Renaissance Technologies and Two Sigma — whose trading models were thrown off by swings their computers had never seen before.
Hedge Fund Founder Ray Dalio Said Son’s Death Triggered Enormous ‘Pain and Reflection’ (Hartford Courant)
Ray Dalio, a philanthropist and founder of Bridgewater Associates, the Westport hedge fund that’s the world’s largest, said Wednesday he was unprepared for the death of his 42-year-old son, Devon, in a Dec. 17 car crash. In a posting, “My Journey and Reflections Following My Son’s Passing” on the career website LinkedIn, Dalio said the loss “triggered an enormous amount of pain and reflection.”
Taking a Passive Approach to the Hedge-Fund Universe (Pensions&Investments)
Investing in hedge funds can be a daunting prospect, even for experienced institutional investors. We can attribute this to the breadth and complexity of the asset class, combined with the need for highly accurate market timing. At the same time, however, the potential for diversification benefits and returns make hedge funds very appealing. Are there any means by which non-specialist investors can access them as part of a diversified portfolio? The answer is yes, but to understand and compare the different options, we must first examine the difficulties in more detail.