Balyasny Asset Management (BAM) posted dull returns in July, however, it was still better than many of its peers, which succumbed to losses. The flagship Atlas Global Investment was down .06%,according to estimated returns on BAM’s monthly update seen by ValueWalk. AGI is up 3.9% for the year, whereas the Atlas Enhanced Fund is up 7.09% after an estimated gain of .24% in July. BAM manages $5.9 billion. Over 80% of the hedge fund’s assets are invested in equities, and some 15% is allocated to macro strategy.
Balyasny funds stumble in mid-July
Just like other hedge funds that suffered in the last month, Balyasny Asset Management was going strong at the beginning of July, but then a combination of global events made it hard for the fund to remain profitable through the rest of the month. The investor letter said that European instability, the conflict in Russia and war in Gaza played a major role in setting the downturn of global markets.
Other funds that operate with somewhat similar strategies to BAM include York Investment, which was down 1.63% in July to end the seven months with a return of 8.6%. BlueCrest Capital International was down .02% in last month and has so far managed only a .7% return for the year. Hutchin Hill Diversified Alpha Fund took in a loss of .23% that brought the YTD return to 7.4%. Weiss Multi Strategy was down 1% in July and so far is down 1.07% for the year.
Industrials hurt BAM in July
BAM’s Dimitry Balyasny noted that continued volatility will bring some good investment opportunities to the surface in the last quarter of the year. BAM maintained a low net exposure of 10.4% through the last month. The funds were profitable in the Energy, Utilities and Healthcare sector but lost in Industrials, Credit and Event assets. In the Q2 letter that we covered earlier, the fund noted that due to losses on both the short and long side of Industrials, it was scaling back its exposure to the sector and allocating it to other more profitable avenues. BAM discussed its two new investments in the Energy sector in the same letter, namely, Boardwalk Pipeline Partners, LP (NYSE:BWP) and Golar LNG Limited (NASDAQ:GLNG). The fund also added to its position in iPhone maker Apple Inc. (NASDAQ:AAPL) over the second quarter.
Balyasny Asset Management’s Atlas Global Investment maintained an average daily volatility of .24% in July, whereas the correlation to the S&P was low at .05.