Interesting piece in today’s The Telegraph on how several London hedge funds have had a great start to 2012:
Michael Hintze of CQS Management and Paul Ruddock of Lansdowne Partners have seen investor returns surge, according to the latest figures from HSBC. CQS generated almost 14pc returns on his $1.4bn (£877m) hedge fund in the first eight weeks of the year. Lansdowne Partners made 9.6pc returns on its $6.6bn UK equity fund. Both financiers were this week named on David Cameron’s list of private dining companions. Another star performer, Crispin Odey, the founder of Odey Asset Management, generated 21pc returns on his $1.3bn European equity fund in the year to March 14, the figures show.
After 2011 proved to be one of the toughest years on record, London’s hedge funds have emerged as among the key – albeit unintended – beneficiaries of Europe’s efforts to stem the debt crisis. The European Central Bank’s (ECB) radical move to offer hundreds of billions of euros of cheap loans has boosted financial stocks and hedge funds’ returns.
One hedge fund manager told The Telegraph: “The ECB has removed the risk from the banks: last year, the banks were ‘un-investable’ because people thought they would go bust. The LTRO [the ECB’s long-term refinancing operation] has proved that the banks may have problems but there are not going bust.