Hedge Funds

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

Alternative Investments/ESG: On The Eve Of COP26, Hedge Funds Ambivalent On ESG (Survey)

October 28, 2021

The results of a poll of hedge fund managers conducted by Hedge Fund Research showed that 53% of them (687 managers) incorporated ESG factors and sustainability metrics into their investment processes. However, 47% (609 managers) said they did not do so. The results are significant, coming as they do ahead of the 2021 UN Climate Change Conference (COP26) in Glasgow this weekend.

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More Stories on Hedge Funds

ESMA Hikes Frequency of Liquidity Stress Tests on European funds

September 3, 2019

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

August 30, 2019

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

Jana Partners May Push for Bloomin’ Brands to Sell

August 30, 2019

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

August 30, 2019

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

August 27, 2019

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

August 24, 2019

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

August 22, 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

August 22, 2019

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

August 22, 2019

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.

Hedge Funds

Eisler Capital Plucks Henry Howell from Goldman Sachs

August 22, 2019

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…

Recession Warning

Dreading the ‘R’ Word? Don’t, Says This Investment Manager

August 20, 2019

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

August 20, 2019

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

August 20, 2019

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”

August 19, 2019

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

August 16, 2019

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”

August 16, 2019

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 and Pershing Square Bets on Berkshire Hathaway

Bill Ackman: Berkshire Stock to “Increase Substantially”

August 15, 2019

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

August 15, 2019

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

August 15, 2019

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.

Bill Ackman and Pershing Square Bets on Berkshire Hathaway

Pershing Square Bets on Warren Buffett

August 15, 2019

Bill Ackman’s secret investment we discussed last week was just a big bet on Berkshire Hathaway Pershing Square Capital Management has made a passive investment on Warren Buffett. A new SEC filing disclosed a 3.5-million stake in Berkshire B shares during the second quarter. Reuters reports it’s a passive investment for Ackman’s firm. As of…

Yield curve inversion flashes recession warning

August 14, 2019

Yield curves have inverted on both sides of the Atlantic following the release of weak economic data across the globe
Yield curve inversion, a phenomenon where longer-term yields fall below short-term yields, was on full display in the U.K. and the U.S. today.
In the U.S., 10-year yields were poised at 1.62% while two-year yields dropped to 1.63%. Across the pond, in the U.K., the 10-year and 2-year yields quoted 0.475% and 0.478% respectively.

One of Asia’s oldest hedge funds warns of looming ‘distressed cycle.’

August 14, 2019

The US-China trade war and growth concerns are likely to push up debt defaults in the region
As default rates in China tick up, a distressed cycle is looming on the horizon, according to George Long, Chief Investment Officer of LIM Advisors, a 14-year-old hedge fund based out of Hong Kong that manages $1 billion in assets.

Argentina’s Stock Rout Hammers Newfoundland Capital Management

August 14, 2019

Newfoundland Capital Management, a Brazilian asset manager, had $300 million in a long-only fund that invested heavily in Argentine stocks
The fund’s losses could be substantial given that Argentina’s key stock index crashed 33% this week following political developments that dimmed President Mauricio Macri’s re-election chances in October.

SEC Approves Hedge Fund Backed by Jon Corzine

August 13, 2019

The approval comes with many restrictions… begging the question “what’s the point?” The SEC approved Jon Corzine’s new fund, despite protect from professionals in the financial community. The hedge fund approval, however, does come with a series of restrictions that limit its investment scope. The agency order bars former MF Global chief Jon Corzine’s new…