Hedge Funds
With global hedge fund assets at roughly $3.45 trillion (and growing by double-digit percentages each year), money managers have a greater influence on public and private markets than ever before. DailyAlts covers every element of the hedge fund industry – from changing performance structures to manager strategies, from regulatory oversight to activist holdings, and from new fund launches to the liquidation of underperformers. This channel is your one-stop-shop for daily news and insights for the influential and topical hedge fund space.
Top Story
European investors, both retail and institutional, are showing a growing interest in hedge funds and alternative investment options, as indicated by recent findings from Cerulli Associates. In the UK, Italy, and Switzerland, there’s a notable preference for semi-liquid funds for private market investments, with 50% of UK wealth managers favoring this approach.
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More Stories on Hedge Funds
AT&T Gets Heat from Billionaire Activist
Hedge Fund Elliott Management writes to ATT on how to “realize a historic increase in value” for its shareholders
Billionaire Paul Singer owns Elliott Management. It revealed in its letter yesterday to telecom conglomerate AT&T that it owned $3.2 billion of the latter’s stock. Elliott’s open letter claimed that AT&T could boost its share price to $60+ by 2021 through “readily achievable initiatives.”
FCA-Approved Crypto-Arbitrage Fund Raises $50 Million
Nickel Asset Management, a London-based hedge fund, has officially launched a cryptocurrency-focused ‘Nickel Arbitrage Fund.’
The new fund has raised $50 million within two months and won rare approval from UK regulators.
Roivant, the Hedge Fund Specializing in Drug Castoffs, Signs $3 Billion Deal
Japanese drugmaker Sumitomo Dainippon Pharma will buy a stake of just over 10% in Roivant Sciences
Former hedge fund manager Vivek Ramaswamy founded Roivant Sciences, a Swiss holding company. Roivant builds “Vants” – biotech and healthcare companies that license, or own, development drugs sidelined by Big Pharma companies.
Roivant currently owns a central technology-enabled platform and 20 Vants with over 45 investigational medicines under development.
Now trade the world’s 1st tokenized hedge fund – 24/7
Protos, the world’s first tokenized hedge fund, opened to public investors this month
Crypto investors can now trade the Protos hedge fund tokens on the OpenFinance Network (OFN). OFN is an SEC-registered Alternative Trading System (ATS).
Activist hedge fund accuses condom-maker of inflating financials
Ben Axler of Spruce Point says Church & Dwight rigged numbers to jack up compensation bonuses
Church & Dwight is the listed maker of Trojan condoms, sex toys, hair growth, and rectal creams. It also sells baking soda and products relating to laundry, cat litter, oral and personal care.
ESMA Hikes Frequency of Liquidity Stress Tests on European funds
European funds such as UCITs, AIFs, and ETFs must conduct quarterly liquidity stress tests, according to the European Securities and Markets Authority (ESMA)
The funds must implement these tests from September 2020.
Preqin Report: Five Straight Quarters of Hedge Fund Outflows
New report shows net outflows yet again in Q2 A Preqin report tracking hedge fund outflows showed more bad news for firms. For the fifth-straight quarter, net outflows hit managers. Preqin says that funds saw $25.3 billion exit hedge fund shops in Q2 2019. This is according to the Q2 2019 Hedge Fund Asset Flows factsheet….
Jana Partners May Push for Bloomin’ Brands to Sell
Activist fund discloses new stake in Outback Steakhouse Owners Jana Partners disclosed a 9% stake in Bloomin Brands (NASDAQ: BLMN) on Friday. Barry Rosenstein’s shop is one of the most prominent activist hedge funds in the business. Don’t be surprised to see them push for new changes, including a sale of assets in the near…
Ray Dalio: An Economic Downturn Could Lead to Depression-Like Conditions
Ray Dalio, the founder of Bridgewater Associates, the largest hedge fund in the world, has painted a grim picture of current economic conditions
Writing on LinkedIn, Dalio said a trifecta of high global debt, weak central banks, and trade wars could result in a downturn that could hammer investors’ fortunes.
Hedge Fund Starboard Value Gets Papa John’s a New CEO
Rob Lynch, the Arby’s executive behind the “We have the meats” campaign is the new CEO of Papa John’s International. Hedge fund Starboard Value invested $250 million earlier this year into Papa John’s International. As the stock slumped thanks to weak same-store sales and PR damage from its founder, Starboard pressed a turnaround plan. Today,…
The short-seller behind Harry Markopolos: Still under wraps
Markopolos will get a share of the short-selling profits from GE’s decline. Question is: who’s punching the trades?
It’s been a week since fraud-hunter Harry Markopolos unveiled his research report on the alleged accounting shenanigans at General Electric Co. Markopolos made no bones about the fact that he was in league with a hedge fund shorting GE shares in anticipation of a decline in their price.
Wall Street is still puzzled about the identity of that hedge fund.
Hedge Fund Investors are Rushing for the Exits in 2019
Compared to 2018, investors have already pulled $ 20 billion more out of hedge funds in the first seven months of this year Hedge fund investors are walking away in droves. In all of 2018, investors had withdrawn $ 37.2 billion from hedge funds. However, in the current year investor outflows already aggregate $ 55.9…
GMO: EM Stocks Will Outperform US Equities Through 2026
Want to diversify out of ‘toppy’ US stocks into uncorrelated assets? EM stocks will clobber US equities, according to a top value investing manager
GMO, an investment manager specializing in long-term value investing, is predicting that US large-cap stocks will decline 3.7% annually over the next seven years while emerging market stocks will generate 5.2% annual return over the same period. Within emerging markets, value stocks could garner returns of as high as 9.8% annually.
EM Hedge Funds Post Record AUM and Gains in Q2
Emerging market hedge funds posted solid returns in Q2 despite market turbulence and supported by blockchain, cryptocurrency, and currencies
According to a report by Chicago-based Hedge Fund Research (HFR), assets under management at emerging market hedge funds touched a record $ 239.3 billion by the end of the second quarter of 2019.
This category of hedge funds also reported the best year to date returns in the industry.
Eisler Capital Plucks Henry Howell from Goldman Sachs
A Goldman alum heads to a hedge fund… run by a Goldman alum Eisler Capital, a macro hedge fund based in London, has hired Henry Howell for a new role in business development. Howell, who worked at Goldman Sachs for 16 years, took the role in July. The news generated buzz this morning after reporting…
Dreading the ‘R’ Word? Don’t, Says This Investment Manager
A recession is not imminent says Esty Dwek, Head of Global Market Strategy, Dynamic Solutions, Natixis Investment Managers
Here is an opinion that is a counterpoint to all the recent doom-and-gloom recession prophecies.
Ray Dalio: China Could “Weaponize” its US Treasury Holdings
Hedge fund titan Ray Dalio said to CNBC that China might well use its massive US Treasury holdings to gain a strategic advantage over the United States in the ongoing trade war
Will China use the nuclear option? That refers to China’s ability to dump its holdings of US Treasury bonds and thereby cause a massive rise in US interest rates that could potentially derail the US economy.
Ray Dalio: The Fed May Be Running Out of Bullets
The Fed tackled the last crisis through monetary easing. “But the power to do this is limited,” says Dalio. “Think of central banks cutting interest rates and purchasing financial assets (QE) as shooting doses of stimulants into their economies and markets.”
Mohamed El-Erian: Negative interest rates in the U.S. “will break things”
El-Erian, chief economic adviser at the financial powerhouse Allianz, warns that negative interest rates in the US would be a recipe for disaster
El-Erian has viewed with some trepidation the recent yield curve inversion that occurred in the US. With negative interest rates already entrenched in Japan and Europe, it may only be a matter of time before the US faces yields below zero.
Bill Ackman at Pershing: He’s really pushing it
What a stark difference. The S&P500 is up 17.35% through June 30, while Bill Ackman’s Pershing Square Holdings, his publicly traded vehicle, rose 45.3%.
This, despite 2019 being the best annual start for the index since 1997.
Crescat Capital Celebrates the “Macro Trade of the Century”
This August one couldn’t have called it better: long precious metals, short yuan, and short equities
Those are the three legs of Crescat Capital’s “macro trade of the century,” and together they netted a 16% gain for the fund in the early days of August.
Crescat Capital founder Kevin Smith, therefore, has cause for celebration.
Bill Ackman: Berkshire Stock to “Increase Substantially”
Has Pershing Square been summoned to bail out the Oracle of Omaha? Bill Ackman said in a letter to shareholders that Berkshire Hathaway stock will bolster returns for the fund. The letter comes shortly after Ackman revealed a sizeable stake in Warren Buffett’s iconic firm. The timing of the $700 million purchase of Berkshire B…
Harry Markopolos: GE Operating $38B Accounting Scam
Markopolos working with an unnamed hedge fund that is shorting GE
Harry Markopolos is an accounting expert reputed for exposing Bernie Madoff’s Ponzi scheme.
On Thursday, Markopolos released a 170-page report that alleged various accounting irregularities at GE. The report says that many of GE’s filings with regulators could be inaccurate and fraudulent.
Lapis Advisers Pressures University on Technical Default
Bethune-Cookman University, in technical default on bonds worth $17 million, is under fire from hedge fund Lapis Advisers, the largest holder of those bonds
Lapis Advisers and bond trustee U.S. Bancorp are alleged to be pressuring the college for a first mortgage on its property worth about $161 million, as part of a forbearance agreement with tenure until December.