(Bloomberg) --
Some hedge funds have been winning big this month amid the worst market sell-off since 1987.
Convex Asia Fund, which is focused on volatility trading, surged an estimated 19% through March 13 while CQS Asian Macro Fund rose 6.9% during the same period, according to investor updates sent by the firms. One River Asset Management's Discretionary Long Volatility Fund has soared 74% this year, according to an emailed update Thursday. One River has more than $800 million in assets under management.
Funds that profit from bigger market swings and some others that trade around broad trends in stocks, bonds, currencies and commodities are thriving as the spread of Covid-19 and an oil price shock send spasms through markets. The S&P 500 recorded a move of at least 4% for the eighth straight session on Wednesday, a feat not seen since the Great Depression.
For Convex, led by Singapore-based David Dredge, most of the gains came last week, when the S&P 500 moved more than 7% on three days.
Dredge used to trade for Fortress Investment Group and Artradis Fund Management Pte, the Singapore-based hedge-fund firm that made $2.5 billion for investors from volatility trading between 2007 and 2008.
In an interview with Bloomberg News late last month, Geoff Barker, of CQS Asian Macro Fund, warned against buying the dip in global equities. He predicted a slower U-shaped recovery from the virus, adding the fund was moving to selling the rally in stocks.
Representatives for Convex and CQS declined to comment.
| For more on hedge funds' performance: |
|---|
CQS's Asia Macro Hedge Fund Warns Against Buying the Virus Dip |
Point72 Posts 4% Loss This Year in March's Stock Meltdown |
The market ructions have been good news for bears, too. Players like APS Asset Management and Dymon Asia Capital (Singapore) Pte have seen some funds rise by double digits as short bets made months ago finally pay off.
Some of the industry's biggest names, meanwhile, are struggling amid the turmoil, among them Steve Cohen's $16 billion Point72 Asset Management. Ray Dalio's Bridgewater Associates, the world's biggest hedge-fund firm, saw its strategies slump as much as 21% this year.
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