Anonymous ID: 35a6e8 Feb. 8, 2021, 2:29 a.m. No.12858598   🗄️.is 🔗kun

Renaissance Hit With $5 Billion in Redemptions Since Dec. 1

 

https://finance.yahoo.com/news/renaissance-hit-5-billion-redemptions-152055646.html

 

Renaissance Technologies, the investing giant that just posted its worst-ever returns across its public funds, has been hit with at least $5 billion in redemptions.

 

Clients pulled a net $1.85 billion across the three hedge funds in December and requested a net $1.9 billion back in January, according to investor letters seen by Bloomberg. Investors are poised to yank another $1.65 billion this month, the letters show.

 

Those figures could be offset if there are any inflows in February or if investors decided to walk back any of their redemption requests.

 

Billionaire Jim Simons’s firm, a quant-investing pioneer, is coming off a rough year. Its three public hedge funds posted double-digit losses in 2020 as their algorithms were thrown out of whack by market swings the computers had never seen before. At the same time, its fund for employees and insiders soared 76% last year, Institutional Investor reported.

 

Renaissance’s Institutional Equities fund, the biggest of the external vehicles, lost 19% in 2020, the letters show. That fund got the biggest chunk of the redemptions. The Institutional Diversified Alpha fund dropped 32% and the Institutional Diversified Global Equities fund fell 31%.

 

A spokesman for the East Setauket, New York-based firm declined to comment.

 

Renaissance told clients in a September letter that its losses were due to being under-hedged during March’s collapse and then over-hedged in the rebound from April through June. That happened because its trading models “overcompensated” for the original trouble.

 

Renaissance again addressed its dismal numbers in a December letter.

 

“Although recent performance has been terrible and worse than prior performance would have suggested was likely for 2020,” the firm said, its model “anticipates that in track records as long as ours, some risk-return ratios every bit as bad as the ones we are now seeing are not shocking.” The broader lesson is that “one should expect even good investments to perform horribly from time to time.”Renaissance is the world’s largest quantitative hedge fund firm. It was founded in 1982 by Simons, a former codebreaker for the National Security Agency. Last month, he announced that he’s stepping down as chairman of the firm, which managed about $60 billion at the time. He will remain a board member.

Anonymous ID: 35a6e8 Feb. 8, 2021, 2:30 a.m. No.12858602   🗄️.is 🔗kun   >>8618 >>8620 >>8741 >>8840 >>8972 >>9029 >>9151

Taiwan Penalizes Deutsche Bank, 3 Others for Currency Trades

 

https://finance.yahoo.com/news/taiwan-penalizes-deutsche-bank-three-063955666.html

 

Taiwan penalized Deutsche Bank AG and three other foreign lenders after a probe into speculation on the surging local currency last year involving grain companies.

 

Deutsche Bank’s trading approvals for Taiwan dollar deliverable forwards and non-deliverable forwards will be revoked, and it will be banned from engaging in transactions of foreign exchange derivatives for two years, the island’s central bank said in a statement Sunday.

 

ING Groep NV and Australia & New Zealand Banking Group Ltd. won’t be allowed to engage in Taiwan dollar deliverable forwards and non-deliverable forwards trading for nine months, while Citigroup Inc. is banned from Taiwan dollar deliverable forwards trading for two months, the central bank said. The penalties imposed on the local units will take effect on Monday.

 

The banks were notified of the punishments on Friday. Trades made before the notice won’t be affected, the central bank said.

 

Deutsche Bank said in an emailed statement that it is “working closely with the CBC and our clients to ensure that FX transactions involving the Taiwan Dollar have a genuine underlying need.” Citigroup declined to comment, while ING and ANZ didn’t immediately respond to calls seeking comment.

 

Eight of Asia’s leading food traders, with the help of six overseas banks, built a combined $11 billion in their Taiwan dollar deliverable forwards positions as of the end of July, the central bank said last month. The positions were based on overseas physical grain trades deliberately transacted via their Taiwan units to speculate on the local currency, affecting market stability, it said.

 

Cargill Inc. and Louis Dreyfus Co. were involved, along with Deutsche Bank, Citigroup, JPMorgan Chase & Co. and Standard Chartered Plc among others, Bloomberg News reported in January, citing people with knowledge of the matter. At least some of the trades were specifically designed to profit from the rising Taiwan dollar, the people familiar said.

 

The island’s dollar has strengthened almost 7% against the U.S. dollar over the past 12 months, among the region’s top performers, according to Bloomberg data.

 

The central bank settled with two lenders in November, it said Sunday, without identifying them. The six banks violated rules because the forwards trades had to be made based on their actual needs, the central bank added.

 

Deutsche Bank can reapply for the revoked trading approvals in the future depending on improvements, according to Eugene Tsai, the central bank’s director general of the Department of Foreign Exchange.

 

Taiwan’s central bank tightly regulates how much of its dollars foreign companies can accrue to avoid speculation on the currency. It had said the huge positions the commodity companies built up in deliverable forwards went beyond their actual business needs.