BOSTON (Reuters) – Multi-strategy hedge funds – those that bet on a broad array of markets using teams of traders, leverage and centralized risk management – have flourished as stocks ended their worst three months since the 2008 financial crisis.
FILE PHOTO: Richard Schimel speaks during the Milken Institute Global Conference in Beverly Hills, California, U.S., May 3, 2017. REUTERS/Lucy Nicholson/File Photo
Balyasny Asset Management, which invests $6 billion, ended the quarter with a 4.8% gain in its main fund after returning 3.7% in March, an investor said. Verition Fund Management’s Verition Multi-Strategy Fund returned 4.5% for the year to date after a 3.75% gain in March, according to preliminary figures from an investor. And Cinctive Capital Management is up 3.25% in 2020 after a roughly 1.5% gain in March, an investor said.
Spokesmen for the funds declined to comment.
Multi-strategy funds are designed to take less market exposure, with long and short positions often sized…