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.
The SEC on Wednesday amended its definition of “accredited investor,” a term that drew a line between high-earning, deep-pocketed investors and retail investors for access to often lucrative opportunities in the private capital markets. Also known as “alternative investments,” these markets include, for example, venture capital, hedge funds, private equity, and real estate.
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More Stories on Hedge Funds
Bill Ackman is doing well in 2020.
In the wake of the COVID-19 pandemic, Pershing Square Capital Management has returned 22% to 27% this year. That easily tops the S&P 500. It has been quite a run for Ackman, whose fund made more than $2 billion while hedging on a downturn at the start of the outbreak. Ackman famously warned that “hell is coming” when urging President Donald Trump to shut down the U.S. economy for 30 days.
PwC and Elwood Asset Management Services used data from the largest global crypto hedge funds to compile the report.
Assets under management (AUM) at cryptocurrency hedge funds doubled from $1 billion in 2018 to $2 billion in 2019, while average assets under management expanded from $21.9 million to $44 million, said the report. Median AuM increased from US$4.3 million to US$8.2 million.
The filing came after the announcement by Loral that it was in advanced discussions with Canadian Telesat co‑owner, Public Sector Pension Investment Board, regarding the combination of Loral and Telesat into one public company. As a result of the discussions, Loral felt it was in the best interest of shareholders to return a significant portion of the $243 million of cash that has on the books.
Activist fund Teleios Capital Partners is pressing for changes on the board of Maisons du Monde.
The fund said it plans to push to appoint two independent board directors to the French furniture company. The hedge fund currently holds a 19.9% stake in the company, according to a statement released on Thursday.
We might not have live sports right now. But we do have the constant jarring back and forth between Greenlight Capital and Tesla Inc. The former’s founder David Einhorn is one of the most prominent hedge fund managers shorting Elon Musk’s company. On Thursday – the day after Tesla’s earnings report – Einhorn questioned the financials of the electric vehicle manufacturer. Specifically, he wanted more information about the firm’s accounts receivable, costs, stalled factories, and the effects of international currency shifts.
Pershing Square Capital founder Bill Ackman encouraged the U.S. government to approach bailouts the same way that Warren Buffett would. On a podcast, Ackman said that emulating the Oracle of Omaha would ensure that the government received favorable terms for taxpayer capital.
Frank Tuil is departing Elliott Management more two decades at the firm. The legendary French investor helped Elliott position itself as a top activist shop across Europe from the firm’s London office. Investors cheered him and investors feared him. Some of his most notable activist campaigns included efforts at French spirits maker Pernod Richard and…
The Medallion Fund, the flagship vehicle of Jim Simons’ Renaissance Technologies, has scored a 39% gain through April 14, 2020. According to the Wall Street Journal, the fund gained roughly 10% in March. That gain was quite an outlier at a time that 75% of hedge funds reported losses due to the COVID-19 selloff.
Hedge Funds: Quintessential Capital Takes Short Position in Akazooactivist hedge fund Quintessential Capital Management.
Activist hedge fund Quintessential Capital Management is shorting music streaming company Akazoo (NASDAQ: SONG). The news sent shares of SONG down more than 22% on Monday.
Hedge fund Elliott Management isn’t bullish on the U.S. economy as we approach the deepest downturn in 80 years. Paul Singer’s fund said Wednesday that global stocks could decline by as much as 50% from February highs. Reuters reports on a letter sent to clients. The fund called the sharp March decline in the market…
Activist fund Jana Partners has struck a deal with Bloomin’ Brands (NASDAQ: BLMN) on board seats. The two firms agreed to add two new independent directors to the restaurant company’s board. Bloomin is best known as the owner of Outback Steakhouse. The activist fund, which owns 9% of BLMN, has been pushing for changes to the board due to falling sales at the company.
Volatility has shaken the markets. The Dow had its worst quarter in history. The U.S. economy could see GDP fall by 30% this quarter. And four portfolio managers at Citadel won’t be around to see what happens next.
Bloomberg reported that the hedge fund fired four portfolio managers last week. Chris Conner, Tio Charbaghi, Steve Bergman, and Chip Fortson are out, according to the report. The four all worked in Citadel’s Global Equities group. The timing coincided with the hiring of Justin Lubell, a Point72 alum, to take over that group.
Paul Tudor Jones said Wednesday that he expects that the market will push higher by June. However, he expects there to be a very volatile market come April.
In an interview with CNBC, the money manager said that things could get bumpy once we start to look at the real economic impact of coronavirus.
Bodenholm Capital, a large Swedish hedge fund with $511.2 million in AUM, is shutting its doors and returning money to its investors. A report indicates that the multi-strategy fund has struggled to perform in the ongoing coronavirus downturn. One of its core investors, Brummer & Partners, said on its website that Bodenhelm was shutting.
Hedge fund manager Bill Ackman says Pershing Square Capital earned $2.6 billion by betting that the coronavirus outbreak would pummel markets. The news comes a week after Ackman appeared on CNBC to tell Americans that “hell is coming” for the domestic market.
While the main fund is down 13.5%, the listed shares that trade over the counter in the United States are currently down around 30% year to date as investors have adopted a risk-off position and sold shares aggressively. Since its inception in 1996, the fund has averaged 14.5%, making it one of the top-performing hedge funds over that period. Investors may be abandoning ship at the wrong time.
The stock is trading at 54% of book value right now. Given the collapse of global markets right now, the book value may be overstated a bit, but as of a week ago, the published Net Asset Value was $18.34 a share versus the current price of less than $12. Even if the fund has declined in line with the market return the shares are still trading at a substantial discount to the value of the stocks they own,
Value investor Seth Klarman has emerged from his bearish slumber. The head of Baupost Group announced he had spent $1.5 billion on new investments in recent weeks. Bloomberg reports that Klarman sees significant value due to fears about coronavirus and valuations. The hedge fund manager also announced he is seeking more investor capital for his $29 billion fund.
Hedge fund manager Ricky Sandler said Monday that he is buying stocks while markets continue their historic selloff.
In an interview with CNBC, the head of Eminence Capital said that he believes that the market reaction has been too extreme.
Hedge fund manager Ray Dalio wrote this week that he is very concerned about the state of the economy. The combination of coronavirus and zero interest rates “really worries” him, according to a note released today.
Billionaire investor Carl Icahn told CNBC on Friday that he has been shorting the commercial bond market. The activist investor said that his short was his “biggest position by far” in an interview on Friday. Specifically, he is targeting corporate offices and shopping malls. Based on the recent downturn in the markets, he’s likely doing well for himself.
Icahn said he expects U.S. commercial real estate to pull back sharply as we saw with housing in 2008.
Coronavirus has hit one of Wall Street’s top financial shops. Multiple media outlets report that an employee at Point72’s Hudson Yard’s office has contracted Covid-19. The Wall Street Journal was the first to report the news, citing an internal email from the fund.
Pershing Square Capital founder Bill Ackman sent a letter to investors about the threat of coronavirus on Tuesday. His statement came shortly after the Federal Reserve slashed interest rates by 50 basis points.
Edward Bramson and his fund Sherborn Investors Management is waging a campaign to oust Jes Staley from the helm of Barclays (NYSE: BCS). According to reports, Sherborne is seeking his ouster due to Staley’s relationship with the deceased financier and convicted sex offender Jeffrey Epstein. In a letter sent to shareholders, the firm urged the board to “rescind their unanimous recommendation to re-elect Staley” as a director at its next annual shareholder meeting.
Electric vehicle manufacturer Nikola Corp. has plans to go public and merge with a publicly traded special purpose acquisition company. That SPAC is backed by hedge fund ValueAct and Fidelity. According to reports, the firm will engage in a reverse merger with VectoIQ Acquisition Corp. (NASDAQ: VTIQ). The new company will trade under the name Nikola Corp. and carry a valuation of $3.3 billion.