Khalid Malik’s Meridiem Capital has made a notable recovery after securing backing from US multi-manager hedge fund Schonfeld Strategic Advisors, according to a Bloomberg report published today. The turnaround marks a significant shift for the London-based fund, which had suffered steep losses earlier in the year as rising interest rates and geopolitical instability rattled global markets.
Schonfeld, one of the largest players in the so-called ‘platform’ model of hedge fund investing, has allocated capital to Meridiem as part of a broader push to support specialist managers with strong track records. The injection is understood to have stabilised the fund’s balance sheet and allowed Malik to reposition his portfolio away from high-risk bets into more defensive, macro-driven strategies.
The FTSE 100 opened slightly lower this morning at 8,212.4 points, down 0.3 per cent, as traders weighed the implications of fresh inflationary data from the US. The pound traded at $1.286 against the dollar, while gilt yields edged up to 4.12 per cent ahead of next week’s Bank of England rate decision. Meridiem’s recovery is unlikely to directly move UK indices, but it does underscore a cautious return of risk appetite among institutional allocators.
For UK pension funds and wealth managers, the development offers a reminder that selective alternative investments can still generate alpha in a low-growth environment. However, analysts at Peel Hunt noted that the broader hedge fund industry continues to face headwinds from high fees and mixed performance, with the average fund in Europe returning just 2.8 per cent year-to-date. “Meridiem’s bounce is encouraging, but it remains an outlier,” one analyst said, speaking on condition of anonymity.
The backing from Schonfeld also highlights the growing influence of US multi-manager platforms in London’s hedge fund scene. These firms provide capital and infrastructure to independent managers, taking a share of profits in return. The model has gained traction as traditional single-manager funds struggle to retain top talent and navigate volatile markets.