Meet the Aussie money manager who made millions as markets crashed
“I’m generally quite conservative,” Bryon said, who manages around $33 million. He favours firms with solid fundamentals that have restructured their costs and recapitalised through stock issues or loans.
Bryon said he watches 24/7 for any signs the virus may shut down economies that have just started to reopen, like China.
That attentiveness allowed him to quickly tip in and out of stocks such as gaming giant Aristocrat Leisure, whose shares plunged 36 per cent in March only to bounce 20 per cent in April.
AVM Global Opportunity Fund Chief Investment Officer Ashvin Murthy has delivered annualised returns of 9.9 per cent since the fund’s inception in 2016, below the outsized gains of some peers. But he sees no shame in being boring and produced a 3.02 per cent increase in March and another 3.14 per cent in April.
For Singapore-based Murthy, who manages around $US50 million ($76 million) for clients including family offices in Europe and Asia, making smaller than his usual bets in the right direction has resulted in larger payouts thanks to market volatility. He currently owns a lot of government bonds, and cash.
I’m OK with being boring, I probably sleep better at night.
Hedge fund investment chief Ashvin Murthy
In late February, he made money by shorting equities [betting against stocks] and going long on the US dollar [tipping on a rise in the US dollar]. By late March, when the Federal Reserve had started pushing through measures to add liquidity, he snapped up gold and investment-grade bonds.
“Most hedge funds that get the spotlight are the ones that are super levered so in a bull market, they all look sexy,” Murthy said, adding that he doesn’t invest more than he’s willing to lose − a risk-averse strategy quite different from the high-volatility trades Asia often sees. “I’m OK with being boring, I probably sleep better at night.”
Other funds that did well in both March and April had China to thank. Pinpoint Asset Management’s nearly $US1.1 billion Pinpoint Multi-Strategy Master Fund increased 0.3 per cent in March and almost 1 per cent in April by holding onto its investments in some of China’s leading companies.
“COVID-19 has negatively affected many industries,” Pinpoint’s Hong Kong-based investor relations manager Jennifer Wong said. “It’s our belief that industry leaders, who have better access to resources, finances and human capital, will continue to gain market share at the expense of weaker peers.” She declined to disclose specific names.
Bullish on China
Pinpoint is bullish on stocks linked to China’s 5G telecommunications network roll-out as well as online and offline education firms, including those that provide extra-curricular tutoring.
Panview Capital’s Asia hedge fund also excelled in part owing to China, rising less than 1 per cent in March and about 4.5 per cent in April. The Hong Kong-based firm, which began trading with external capital in January, cut India investments and shifted some of its portfolio to China instead, a person familiar with the matter said, but declining to be identified because the details are private.
Here are a few others that made money in both March and April.
- Ocean Arete, a Hong Kong-based manager that oversees $US1 billion. It returned 2.1 per cent in March and 3.4 per cent in April. Its macro hedge fund started in March owning risky assets, including global stock indexes, but cut those positions as equity markets began to plunge. As government stimulus measures kicked in towards the end of March, it rebuilt bullish positions in US and Chinese stocks to ride the April rebound wave.
- CloudAlpha Capital Management’s hedge fund advanced 1.9 per cent in March and 4.2 per cent in April, taking this year’s gain to almost 49 per cent, according to a client newsletter. That was thanks to a bullish position in Tesla and some well-timed shorting of Luckin Coffee.
- Infini Capital Management’s multistrategy hedge fund surged 33 per cent in March and rose another 25 per cent in April.