Michael Hintze closes CQS Diversified Fund, which deploys various internal strategies following sizable losses.
The first half of 2022 has been particularly challenging for investors as central banks aggressively tighten in a slowing economy and the lingering effects of the pandemic continue.
So the S&P 500 had its worse half in 50 years since 1970, losing almost 21% in the first half of 2022.
Approximately twelve trillion dollars of wealth has been wiped off portfolios since 2022.
“Michael Hintze closes CQS Diversified Fund, which deploys various internal strategies following sizable losses”
WEALTH TRAINING COMPANY
Cryptocurrencies’ market capitalization has shed 2 trillion US dollars, and more than 7 trillion US dollars has been slashed from the value of US blue-chip S&P 500.
Even the bond market shed 2.6 trillion US dollars, which is rare for both stocks and bonds to shed wealth. So not even the 60-40 stock-bond portfolios have escaped central banks’ tighter liquidity conditions.
Perhaps the second half of 2022 has been the worst and least reported crash going beyond the scope and memory of money managers today.
Michael Hintze closes CQS Diversified Fund in what has been the toughest half-century comes as no surprise
The London-based firm, which runs $20bn in assets under management and suffered sizable losses during the early stages of the coronavirus pandemic.
A raft of high-profile equity hedge funds have suffered significant losses as the prospect of rising interest rates has prompted a rout in high-growth technology stocks, although computer-driven funds betting on market trends have prospered. Michael Hintze’s CQS Diversified fund has shrunk to $388mn, roughly half of which was managed on behalf of CQS staff.
“The London-based firm, which runs $20bn in assets under management and suffered sizable losses during the early stages of the coronavirus pandemic”
RAY DALIO
Michael Hintze closes CQS Diversified Fund amidix massive losses and drawdowns.
In the market turmoil of March and April 2020, the Directional Opportunities fund lost 47 percent, or about $1.4bn, and eventually finished the year down about 35 percent. In a letter to investors towards the end of the year. “It was extremely upsetting at having to come to clients with the losses,” said Michael Hintze.
Ironically, as Michael Hintze closes CQS Diversified Fund, it subsequently rebounded, gaining 21.5 percent last year and 7 percent this year, helped recently by bets on stocks and credit hedges, although investors are still sitting on losses compared with the start of 2020.
“Cathie Wood’s flagship ETF is down over 50%” – Wealth Training Company
Michael Hintze closes CQS Diversified Fund due to steep losses, but Hintze’s losses are not isolated. Tiger Global fund is down 50% this year. Dan Loeb’s $7.1bn Third Point Offshore funds have lost around 14 percent.
Cathie Wood’s flagship ETF is down over 50%.
These are the classic signs of a peak liquidity tightening, peak hawkishness, huge losses, hedge fund closures, and bank failures. In other words, the beginning of a new liquidity cycle, the transition from hawkishness to dovishness, liquidity increases, which support higher-risk assets. The rotation from cash to beaten-up risk assets could be in play.
