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
Pershing Square Bets on Warren Buffett
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
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.’
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
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
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…
Hedge Fund Q2 Moves: Third Point Buys IPO Stocks
Pershing Square, Third Point Cut Stakes in United Technologies SEC filings have revealed the latest hedge fund Q2 moves. Hedge fund Third Point has joined Pershing Square Capital by cutting its stake in United Technologies, according to the firm’s latest 13-F filings with the SEC. Dan Loeb’s shop sold 480,000 UTX shares and still holds…
Carl Icahn and Cloudera Strike Deal
Icahn gains two board seats, agrees not to boost stake above 20% in cloud computing firm Carl Icahn and Cloudera have reached a voting and standstill agreement. The cloud-computing firm has agreed to appoint Nicholas Graziano and Jesse Lynn to its board of directors. Both new board members are employees of Icahn Enterprises. Both board directors’ terms expire…
Goldman Taps Avinash Mehrotra to Lead Activist Defense
Avinash Mehrotra returns to the group he led after the departure of William Anderson in 2015. The Goldman Sachs activist defense team has a new leader after the departure of partner Steven Barg. Goldman has announced that Avinash Mehrotra would lead the company’s activist defense group. The firm released details in an internal memo, according…
Och-Ziff Changes Its Name to Something Worth Fewer Scrabble Points
Hedge fund chooses new name Sculptor Capital Management as an ongoing shakeup of Dan Och’s firm continues. The Och-Ziff name change is complete. The company has channeled its inner Stringer Bell. Following the departure of billionaire founder Dan Och, a bribery scandal in Africa, and a revolving door exodus of client money – Och-Ziff has…
The Death of Sears – We’re Well Past 1,000 Cuts
Eddie Lampert’s Transform Holdco will shutter another 26 shops as Sears’ demise accelerates. The death of Sears will continue at a slow, steady pace well into the fall. Next week, Transform Holdco, the company created by Sears Chairman Eddie Lampert to purchase the retailer’s assets out of bankruptcy, will start “liquidation sales” at locations it…
ESG Hedge Fund Falters in Sweden
The fund had only $2.46 million in assets one year into its operations Handelsbanken Fonder will shutter its ESG hedge fund Handelsbanken Hållbarhet Hedge on September 5, according to a letter to investors. Despite increasing demand around the globe for ESG strategies, the Swedish asset manager cited low client enthusiasm. Launched in February 2018, the…
Jeff Tarrant Passes Away at 63
The hedge fund pioneer made a legendary bet against Warren Buffett on activist traders Jeffrey Tarrant, the co-founder of Protégé Partners, has passed away at 63 after a battle with brain cancer. According to a statement from Protégé Partners, Tarrant died at his Bridgehampton home on August 5. Tarrant was a legendary seed investor, money…
BlueMountain Capital Sold to Assured Guaranty
Affiliated Managers Group sells its state to the Bermuda-based municipal bond and infrastructure insurer, for $91 million. BlueMountain Capital has struggled in 2019. At the end of June, its flagship Credit Alternatives fund ‘s performance showed a 4% loss. Affiliated Managers Group said it was working to bring the fund back to profitability. The fund…
Scaramucci: Trade War Holds Back Capital Expenditures
Anthony Scaramucci thanked President Trump Thursday for helping to bolster the alternative investment industry after the 2017 Jobs and Tax Cuts Act. However, he then warned the White House that CEOs are holding back capital investment due to Trump’s erratic stance on global trade. As a guest host on Squawk Box Thursday, the former White…
Hoplite Capital to Shut Its Doors After 16 Years
The announcement came in a letter to shareholders after lackluster returns. John Lykouretzos will shutter Hoplite Capital and return capital to investors. The hedge fund manager addressed his decision in a letter to shareholders this week. “I have decided to close the Hoplite managed funds and return third-party capital as soon as possible,” he wrote….
Managed Futures Funds: These Mega Bulls Could Trigger the Next Big Sell-Off
Here’s a toxic mix of factors that could trigger a self-sustaining downturn in already top-heavy markets. Trade war machinations, a bull run in stocks that is long in the tooth and a dithering Fed.
Add to this a group of hedge funds, known as managed futures funds, that have loaded to the gills with bullish bets on the market.
And these guys, $300 billion in size, are computer-driven.
Ray Dalio: Bet Both Sides of the Sino-U.S. Trade War
The Bridgewater founder told investors in an interview to bet on “both horses in the race” as global tensions heighten. Ray Dalio, the outspoken founder of Bridgewater Associates, told investors on Tuesday to invest in China as the country liberalizes its economy. Encouraging investors to bet on “both horses in the raise,” Dalio raised eyebrows…
Bill Ackman Ditches Stakes in United Technologies, ADP
Activist manager Bill Ackman walks away from two positions. Pershing Square Capital Management chief Bill Ackman is out of United Technologies (NYSE: UTX). The outspoken activist manager chose to drop his stake in the defense company instead of fighting the firm’s planned takeover of rival Raytheon Corp. (NYSE; RTN). The deal – expected to exceed…
Alleged Hedge Fund Fraud Links Lewitt, Biden’s Brother
Two healthcare companies are suing a hedge fund manager and James Biden Accusations of hedge fund fraud are back in the headlines. A hedge fund manager and the brother of a Presidential candidate are accused of defrauding two medical companies in Tennesee. Last month, Azzam Medical Services and Diverse Medical Management filed a complaint with…
Hedge fund Fees: Element Capital Eyes 40%
Hedge fund star Jeffrey Talpins is bumping up the performance fee at his Element Capital hedge fund from the already pricey 25% to 40%. However, the fund will cut its management fee from 2.5% to 2%.
Equinox Energy Fund Implodes After Dismal Performance
Equinox Energy Fund closes after losing 85%
In a letter to investors, Equinox fund manager Sean Fieler attributes the losses to lousy stock picking and bear markets in E&P companies, Western Canadian energy prices, and small-cap energy companies.
Maarten Petermann to launch $500 million special situations fund
Petermann’s last-held position at JPM, that of European head of special situations, should be valuable experience when he runs his proposed Merlyn Advisors fund.
Merlyn is targeting $500 million in assets when it commences trading, with deployment across special situations such as M&A, spinoffs, and bankruptcies.
LSE snaps up Refinitiv for $27 billion
LSE shares surge higher on news of the deal; erstwhile Refinitiv owners will own 37% of LSE
The three-hundred-year-old London Stock Exchange Group made a massive bid to extend its reach into data by agreeing to buy Refinitiv, the global provider of data and tradi
7IM: Dramatic rise in demand for sustainable and ESG strategies
Seven Investment Management’s Sustainable Balance Fund notches up £100 million AUM
7IM’s Sustainable Balance Fund, which garnered AUM of £100 million by this week, invests in a portfolio structured around the environmental, social and governance (ESG) theme.