CQS (Hedge Fund)

CQS is a London-based asset management firm.[1] It focuses on the areas of multi-strategy, convertibles, asset backed securities, credit, loans and equities.

In 2007 it was a founder member of the Hedge Fund Standards Board which sets a voluntary code of standards of best practice endorsed by its members.[2]

CQS was included in Institutional Investor's 2012[3] and 2013[4] lists of the Top single-manager hedge fund firms by assets under management and Barron's 2012[5] and 2013[6] lists of the "Best 100 Hedge Funds". Bloomberg ranked the CQS Directional Opportunities Fund #3 on its list of the top-performing large hedge funds in 2012.[7]

In May 2013, CQS was given three awards at the Financial News Awards for Excellence in Institutional Hedge Fund Management, Europe: Best Hedge Fund Manager Overall, Best Hedge Fund Manager in Credit, and Best Multi-Hedge Fund Manager.[8]

CQS is known for its successful bets in the US subprime mortgage market.[9]

In May 2012, CQS was reported to be on the opposite side of the infamous JPMorgan trade by Bruno Iskil, in which JPMorgan lost more than $2billion because of its massive position in U.S. credit derivatives.[10]

According to Dow Jones,[11] CQS’s asset-backed fund and Directional Opportunities fund have both posted double digit returns for the first half of 2012.

Adam Werritty reportedly once had a desk at the company’s London base.[12]

As of December 2015, the firm managed $12.6bn in assets.[13]

Leadership

CQS was founded in 1999 by Michael Hintze, who serves as the Chief Executive Officer and Senior Investment Officer. Prior to establishing CQS, Hintze was European Head of Convertible Bonds at Credit Suisse First Boston (CSFB) and Head of UK Equity Trading and European Convertible Bond Trading at Goldman Sachs.

Hintze is ranked #5 on Financial News’ FN100 Most Influential list[14] in the hedge fund category. Hintze was listed by The Wall Street Journal as one of five "2012 All-Stars" during a period that was difficult for many others in the hedge fund industry.[15]

CQS was one of the first hedge funds to create the position of Chief Risk Officer (CRO).

Board

CQS's board includes former UK City minister Lord Myners,[16] former U.S. Securities and Exchange Commission (SEC) Chairman Harvey Pitt, and former Chief of the Defence Staff of the British Armed Forces General Lord Richards.[17]

Office Locations

CQS has offices in London, Hong Kong, New York, Jersey and Sydney. Affiliates within the group are regulated by the Financial Conduct Authority (FCA) in London, the Securities and Futures Commission (SFC) in Hong Kong and the Australian Securities and Investments Commission (ASIC) in Sydney, and registered with the Securities and Exchange Commission (SEC) in New York.

CQS opened its Sydney, Australia office in 2010[18] and expanded its presence in the country in 2011.[19]

Memberships

CQS is a member of the Alternative Investment Management Association, the International Swaps and Derivatives Association, the Loan Market Association and the Hedge Fund Standards Board. The CEO of CQS, Michael Hintze, is a trustee of the Hedge Fund Standards Board.

References

  1. CQS Website
  2. Hedge Fund Standards Board. "HFSB Founders & Core Supporters". Retrieved 27 September 2016.
  3. Hedge Fund 100 Ranking 2012
  4. Hedge Fund 100 Ranking 2013
  5. Barron's Best 100 Hedge Funds 2012
  6. Barron's Best 100 Hedge Funds 2013
  7. Bloomberg: The 100 Top-Performing Large Hedge Funds
  8. Hat-trick for CQS at FN Hedge Fund Awards
  9. CQS shuts fund built on subprime to newcomers
  10. Hedge Funds Eye Further Profits from JPMorgan Losses
  11. Hedge Funds Gained 1.1% in July, Still Lag Broad Market
  12. Liam Fox's friend Adam Werritty linked to Conservative donor
  13. "CQS Insights: Looking into 2016" (PDF).
  14. Financial News FN100 List
  15. Hedge funds belt few home runs
  16. "CQS adds City and military prowess to board". Financial News.
  17. "CQS: Strategic offensive". Financial Times.
  18. CQS Seeks to Open Australia Office
  19. CQS expands Australian presence
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