31/03/20

HEDGE FUNDS: AllianzGI closes two hedge funds after unprecedented selloff.

As published on citywireselector.com, Monday 30 March, 2020.

Allianz Global Investors has closed two of its private hedge funds from the structured alpha range.

This involved the liquidation of the Structured Alpha 1000 and Structured Alpha 1000 Plus funds, with the remainder of the 27-strong range unaffected by the change.

‘The recent market selloff has been particularly testing to navigate: an incredibly choppy, abrupt, multiday event, the likes of which there is no precedent,’ the asset manager said in a statement.

The spokesperson of the firm also highlighted that despite being a net buyer of long puts, the nature of the move had a particularly large impact on the positions held by the two highest target alpha private strategies. 

‘The portfolios were restructured and de-risked significantly during the course of this turmoil, but not without sustaining significant realised losses,’ the firm said.

Following this the decision was made to liquidate the two strategies and an associated offshore feeder.