Archive for Hedge Funds

  • Indian market never cheap, focus on long term: Habrok’s Khanna
  • Reform push should bolster economic expansion next year

The top-performing hedge fund focused on India isn’t scared by equity valuations that are the most expensive in 10 years and predicts Asia’s third-largest economy will have seven good years in the next decade.

Rahul Khanna, chief investment officer at Habrok Capital Management LLP, said his fund is betting on the long-term potential of the economy, which will begin to benefit next year from the government’s crackdown on black money and a nationwide sales tax. Last year’s cash ban and the goods and services tax introduced July 1 are expected to widen the tax base, while the latter should also make it easier to do business…

Share
Categories : Hedge Funds
Comments (0)
  • Mark Yusko’s Morgan Creek has invested in China since 1995
  • China’s bad debt may be 40% smaller than bears estimate: Yusko

One hedge fund investor says Kyle Bass, Jim Chanos and other China bears are missing a key piece of the equation.

Global investors have underestimated the power of China’s command economy, where leaders can cancel or forgive debts and control the currency, Mark Yusko, chief investment officer of Morgan Creek Capital Management, said in an interview. China’s unique ability to control its market ensured that predictions of a yuan crash, a debt crisis and an economic hard landing didn’t play out, said Yusko, whose Chapel Hill, North Carolina-based firm manages about $2.5 billion in private investments and hedge funds…

Share
Categories : Hedge Funds
Comments (0)
Sep
19

Hugh Hendry Murders His Hedge Fund

Posted by: | Comments (0)
 Investors may rue the day the macro strategy died.
Hugh Hendry is killing off his Eclectica Fund after 15 years. Moreover, he predicts that investors won’t be willing to back other hedge-fund managers pursuing similar strategies — just when they might be most needed…
Share
Categories : Hedge Funds
Comments (0)
  • Conatus manages $1.6 billion, down from $2.3 billion at start
  • Flagship fund gained 18% this year; media fund up 24%

Hedge fund manager David Stemerman is closing his Conatus Capital Management after a decade to explore a run as the Republican candidate for governor of Connecticut.

As Conatus approaches the end of its tenth year, I have decided to pursue an opportunity in public service and will be winding down the firm in December,” he wrote in a letter to investors. “As I begin to evaluate the opportunity to serve as Connecticut’s next governor, I expect to form a candidate committee that will prepare to launch a campaign in 2018.”

Share
Categories : Hedge Funds
Comments (0)
  • Wagers on rising diesel prices reach their highest since 2013
  • Gasoline stockpiles had the biggest weekly draw on record

The post-Harvey buzz over fuels is making U.S. crude look like the poor stepchild of hedge funds.

Since the storm battered the heart of America’s refining industry last month, bets on rising gasoline and diesel prices have surged for three straight weeks to the most bullish in years. But when it comes to West Texas Intermediate crude, skepticism is prevailing…

Hedge Funds Bet on Fuels Over Crude as Hurricane Trade Persists

Share
Categories : Hedge Funds
Comments (0)
  • Eclectica Fund lost 9.4 percent this year through August
  • Hendry gained fame by betting against banks during crisis

Hugh Hendry, the hedge fund manager known for his provocative statements and contrarian views, is closing his Eclectica Asset Management following a 15 year run that ended with losses.

“It wasn’t supposed to be like this,” Hendry said in an investor letter seen by Bloomberg. The fund “became strongly correlated over the short term to the maelstrom of President Trump and the daily news bombs emanating from the Korean Peninsula,” making it impossible to manage small amounts of money, he said…

Share
Categories : Hedge Funds
Comments (0)
  • Proliferation of ICOs raises risk of faulty, fraudulent deals
  • Crypto hedge funds have raised more than $800 million

Lucas Ryan of MetaStable Capital took a deep dive into the computer code underpinning the digital currency Monero to see if it worked as promised. He even took a core piece written in C ++, and rewrote it in the programming language Python.

The extra effort paid off. After taking the time to vet Monero before its investment, the San Francisco-based hedge fund has seen a 100-fold return, said Joshua Seims, who started MetaStable with Ryan three years ago…

Share
Categories : Hedge Funds
Comments (0)
  • Share of fund managers taking protection rises most since 2016
  • BofAML survey shows investors fretting over North Korea

The number of investors seeking protection from a stock market plunge rose by the most in 14 months in September, according to the latest survey of fund managers by Bank of America Merrill Lynch.

There was a 9 percentage point jump in the share of investors buying equity hedges, according to the Sept. 1 to 7 poll of money managers overseeing $629 billion. That leaves only a net 27 percent who have not bought protection, the bank’s strategists said. The level of underweight positions in U.S. equities rose to a ten-year high…

Share
Categories : Hedge Funds
Comments (0)
  • Hart has changed his mind; Odey has tempered his view
  • Yuan, Chinese stocks have recovered after 2015 turmoil

A sharp devaluation. A credit crisis. And an economic hard landing.

That’s what some of the biggest names in the hedge fund industry were predicting for China after the nation’s stocks and currency tumbled in 2015.

Two years later, it hasn’t worked out quite the way pessimists anticipated. Bets on a devaluation have fizzled as the yuan rallied nearly 7 percent from its eight-year low against the dollar in December. Chinese credit markets have stabilized, while the nation’s equities are back in a bull market…

Share
Categories : Hedge Funds
Comments (0)
  • Trader bought inside information from his pal at Amazon: SEC
  • Goal was to show he was top trader and start hedge fund

Two men who had dreams of starting a hedge fund have been accused of taking an unfortunate shortcut to show they were top-notch traders: buying illegal tips from their friend at Amazon.com Inc.

Maziar Rezakhani and Sam Sadeghi of Washington state paid Amazon analyst Brett Kennedy $10,000 for nonpublic information on the online retailer’s 2015 first-quarter earnings, the U.S. Securities and Exchange Commission said in a Thursday statement. Their goal was to establish a successful track record so they could impress investors and start a New York hedge fund, the SEC said…

Share
Categories : Hedge Funds
Comments (0)

Fundamental and quantitative investing used to be the hedge-fund versions of oil and water: They didn’t mix. Those in the fundamental camp do analysis the old-fashioned way, evaluating investments based on research and instinct, with humans calling the shots. Quantitative money managers turn to sophisticated computer algorithms that search mountains of data for hidden signals and then make rapid-fire investment decisions. A middle ground has recently emerged: “quantamental” investing, a merger of computer and human-based decision making. It’s not yet clear whether the whole is more than the sum of its parts…

The Hot New Hedge Fund Flavor Is ‘Quantamental’

Share
Categories : Hedge Funds
Comments (0)

A federal appeals panel upheld on Wednesday the insider trading conviction of Mathew Martoma, a former portfolio manager for Steven A. Cohen, in what prosecutors once called the most lucrative insider trading scheme of all time.

Lawyers for Mr. Martoma, who is serving a nine-year prison sentence, had argued, in light of a recent ruling by the Supreme Court, that the jury in the trial had not been properly instructed and that the evidence the government presented was not sufficient to support a conviction…

Mathew Martoma’s Insider Trading Conviction Is Upheld

Share
Categories : Hedge Funds
Comments (0)

SoftBank said on Thursday that it and its $93 billion Vision Fund would invest $4.4 billion into WeWork, the fast-growing start-up that provides shared work spaces.

The enormous investment is the latest one made by SoftBank, which has been making outsize bets on a dizzying array of start-ups.

Such has been the ambition of SoftBank’s founder, Masayoshi Son, that the Japanese conglomerate has been able to raise tens of billions of dollars from the likes of Saudi Arabia and Apple for its Vision Fund…

SoftBank and Fund to Invest $4.4 Billion in WeWork

Share
Categories : Hedge Funds
Comments (0)

Elliott Management, the hedge fund run by Paul Singer, is grasping at straws in its battle for bankrupt Energy Future Holdings.

The hedge fund now owns enough of the company’s debt to block a takeover offer from Berkshire Hathaway, according to The Wall Street Journal and other reports. Yet such a move makes little sense without a viable alternative. The judge has wider interests to consider, and Berkshire’s boss, Warren E. Buffett, appears to see through Elliott’s posturing…

In Battle Over Texas Utility, Elliott Is Grasping at Straws

Share
Categories : Hedge Funds
Comments (0)
  • Ravisankar was involved in trade that made eight-fold return
  • His firm plans concentrated investments in future leaders

Hari Ravisankar, who helped Janchor Partners make an eight-fold return on an investment in Alibaba Group Holding Ltd., is starting his own Asia-focused stock hedge fund, said people with knowledge of the matter.

His Ishana Capital, based in Hong Kong, will start trading with external money on Sept. 1, said the people, who asked not to be identified because the information hasn’t been publicly disclosed. Initial capital for the fund has been pledged by institutions including HS Group, a Hong Kong-based strategic investor in hedge funds, the people said…

Share
Categories : Hedge Funds
Comments (0)

On Tuesday, Indra Nooyi, the chief executive of PepsiCo, joined a call with other prominent corporate chieftains who — like her — had agreed to advise President Trump.

A rebellion was brewing.

Along with other business leaders, Ms. Nooyi had watched with bafflement over the weekend as Mr. Trump blamed “many sides” for an outburst of white supremacist violence in Charlottesville, Va…

After Trump Hedges His Condemnation of Hate, C.E.O.s Organize a Mass Defection

Share
Categories : Hedge Funds
Comments (0)
  • Akamatsu Fund is on track to post highest return since 2013
  • Small-cap stocks boosted returns at some Japan hedge funds

Akamatsu Fund, a $60 million Japan-focused hedge fund, is on track for its best returns in four years as bets on small-cap manufacturing stocks started to bear fruit.

The long-short fund rose 2.2 percent in July, bringing its returns for the first seven months of the year to 12 percent, according to the fund’s monthly report to investors. The fund, which invests in stocks excluding Japan’s biggest 250 companies, rose as picks including Wavelock Holdings Co., a plastic manufacturer, and condom maker Sagami Rubber Industries Co. helped lift returns…

Share
Categories : Hedge Funds
Comments (0)
  • Goldman has bet on 15 fintech ventures this year, report shows
  • JPMorgan ranks second among banks with nine investments

A new type of hedging is sweeping Wall Street this year.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. are leading big banks in plowing record funds into outside ventures trying to disrupt their industry, a role typically dominated by venture capital firms, according to a report from Opimas, a management consultancy…

Goldman Tops Banks Betting on a New Type of Hedging

Share
Categories : Hedge Funds
Comments (0)
  • Investments in the two FAANG firms declined in second quarter
  • Investors pushing up Blue Apron shares should look at Snap

Hedge funds have adored the FAANGs for so long it’s no wonder that two of them — Apple Inc. and Facebook Inc. — are losing their appeal.

Ken Griffin’s Citadel sold 3.4 million shares of Apple, the majority of its stake. And Viking Global Investors, led by Andreas Halvorsen, shed 9.6 million shares of Facebook, or most of its holding. These are just two tidbits from the fire-hose of data hedge fund managers disclosed Monday in 13F filings, due 45 days after the end of each quarter…

Share
Categories : Hedge Funds
Comments (0)
  • Iron ore, zinc may be close to peak: Academia’s Szpakowski
  • Some China leveraged commodities set to ‘unwind’ next 6 months

The bubble may be about to burst for commodities pumped up by China’s efforts to reform its steel industry, presenting a compelling opportunity for investors to sell, according to hedge fund Academia Capital.

While speculative buying has boosted raw materials from iron ore to zinc, those gains may reverse as growth slows into 2018, according to Ivan Szpakowski, chief investment officer at the hedge fund. Szpakowski predicted oil would be the “trade of the year” in January 2016, just before Brent prices slumped to a 12-year low and then doubled to end the year near $57 a barrel…

Share
Categories : Hedge Funds
Comments (0)
  • Famed investor recommends having 5-10% of assets in gold
  • Current risks are ‘especially challenging to price in’

Hedge fund manager Ray Dalio recommends investors consider placing 5 percent to 10 percent of their assets in gold as a hedge against current political and economic risks.

Dalio, the idiosyncratic billionaire who leads the world’s largest hedge fund at Bridgewater Associates, said the market may be challenged by current events, according to a LinkedIn post on Thursday.

“The emerging risks appear more political than economic, which makes them especially challenging to price in,” wrote Dalio, who rarely makes specific market recommendations…

Share
Categories : Hedge Funds
Comments (0)
  • Hedge funds’ growing power may be distorting asset prices
  • Asset managers have warned U.K. regulator about this issue

The decade-long growth of cheap index-tracking funds is giving hedge funds an unexpected influence in setting market prices.

As investors hand more of their money to passive fund managers and active stock pickers get sidelined, hedge funds’ heft is being magnified. Active fund managers have complained to Britain’s financial regulator that increased index-tracking is distorting markets by allowing hedge funds with “short-term” outlooks to set prices that don’t reflect fundamentals…

Hedge Funds Seen Gaining Market Influence in Passive Money Boom

Share
Categories : Hedge Funds
Comments (0)
  • Simplex fund returns 29% in first half by targeting small caps
  • Japan-focused funds are world’s third-best performers so far

Aiming small is helping some Japanese hedge funds deliver outsize returns.

Simplex Asset Management Co.’s Japan Lower Market Strategy fund, which scours the nation’s three regional exchanges for small-cap stocks, returned 29 percent in the first six months of the year. Eschewing big-name companies also helped Sparx Group Co.’s Value Impact Fund gain 19 percent in the first half, while Strategic Capital Inc.’s activist fund added 15 percent, according to the firms.

Share
Categories : Hedge Funds
Comments (0)
  • Year-long stock rally helps RIEF, Viking surge almost 9%
  • Griffin’s flagships Kensington and Wellington up almost 7%

Start your day with what’s moving markets in Asia. Sign up here to receive our newsletter.

Rallying stock markets are helping lift returns at mega-hedge funds including Viking Global Investors and Renaissance Technologies.

Andreas Halvorsen’s Viking and an equity-focused quantitative fund at Renaissance are up more than 9 percent this year through July, according to person with knowledge of the matter and an investor document seen by Bloomberg News. Dan Loeb’s Third Point Offshore Fund reported a gain of 11.7 percent for the first seven months of 2017, the firm’s website shows. Ken Griffin’s main Wellington and Kensington funds at Citadel rose almost 7 percent

Share
Categories : Hedge Funds
Comments (0)
  • China’s stock, bond markets poised to rally, Chongyang says
  • President Wang is more positive, ‘especially’ on stocks

Shanghai Chongyang Investment Management Co., whose oldest China hedge fund has returned almost three times as much as equity benchmarks, said the nation’s stock and bond markets are poised to rally as the “worst” part of a deleveraging process appears over.

“As far as market impact is concerned, the most violent phase of this campaign-style deleveraging is over,” Chongyang President Wang Qing said in an interview with Bloomberg TV in his office atop a skyscraper overlooking Shanghai’s financial district. He is “more positive” on the outlook for bonds and “especially the stock market.”…

Share
Categories : Hedge Funds
Comments (0)
  • Raymond Montoya allegedly defrauded investors in his RMA fund
  • He was released on $100,000 bail and is in plea negotiations

Boston-area hedge fund manager Raymond Montoya, who led the RMA Strategic Opportunity Fund LLC, was arrested and charged by federal prosecutors with running a Ponzi scheme.

The federal charges on Wednesday followed a civil lawsuit in June in which the  Massachusetts Securities Division claimed Montoya committed securities fraud when he told investors that he had $5 billion of assets in his fund in 2015. In sworn testimony, he said the fund’s high-water mark was about $20 million…

Share
Categories : Hedge Funds
Comments (0)
  • BNP Paribas, PVM see producer hedging as prices near $50
  • Shale companies not backing away from large output targets

Look under the hood of the oil market and one thing becomes apparent — shale producers seem to be hedging again.

Demand for the contracts that producers use to guarantee price levels soared after 2018 West Texas Intermediate crude returned to $50 a barrel. At the same time a raft of trades were reported to U.S. regulators last week that showed some producers hedging at levels as low as $45 a barrel, according to data compiled by Bloomberg…

Share
Categories : Hedge Funds
Comments (0)
  • BVI client assets sink to $3.6 billion, half value of year ago
  • Billionaire macro manager’s fund is down 1.9 percent

Paul Tudor Jones’ investors are increasingly deserting him.

The billionaire macro manager who helped give rise to the hedge fund industry saw clients pull about 15 percent of their assets from his main fund in the second quarter, according to investors who asked not to be identified discussing private information. That’s left client assets at about $3.6 billion, almost half the value a year ago.

Share
Categories : Hedge Funds
Comments (0)

Starboard Value, an activist hedge fund known for taking on companies like Yahoo and Macy’s, has unveiled its next target: comScore, the big media measurement company.

Starboard sued comScore on Tuesday in a Delaware court, seeking to force the company to schedule an annual meeting for the first time in two years.

The hedge fund said it had amassed a 4.9 percent stake, making it one of comScore’s biggest shareholders, according to data from Standard & Poor’s Global Market Intelligence.

A representative for comScore said the company was assessing the lawsuit, but declined to comment further…

Share
Categories : Hedge Funds
Comments (0)
  • Vitol CEO Ian Taylor: “Physical differentials are improving”
  • Discounts narrow as refiners run harder, global demand rallies

Hedge funds are still holding large bearish bets against oil and OPEC, yet out in the real world traders and refiners buying and selling actual barrels say it’s starting to look somewhat more bullish.

“The market is looking a bit better,” Ian Taylor, chief executive officer of Vitol Group, the world’s largest oil trader, said in an interview. “Physical differentials are improving across the world.”

Share
Categories : Hedge Funds
Comments (0)
  • ‘You pay people for what you think they’re going to do’
  • Firm lost a third of its assets to Africa bribery scandal

Dan Och still runs the show at Och-Ziff Capital Management Group. He’s the chief executive officer, the chairman of the board and very much the face of the hedge-fund powerhouse he founded more than two decades ago.

But in the wake of a bribery scandal that spooked clients and blew away a third of its assets, the fund’s fate is in many ways now in the hands of a little-known 34-year-old named Jimmy Levin…

Share
Categories : Hedge Funds
Comments (0)
  • Desmond Lun’s AI trading model draws on computational biology
  • Biologists are ‘kicking butt’ in data science, professor says

Hedge fund manager Desmond Lun’s 21 percent average return over the last four years springs from an unlikely source — a petri dish of algae.

Lun, 37, is a new kind of quant, combining AI wizardry with old-school biology to trade futures. Although his Taaffeite Capital Management is small, Lun makes a big claim: His research into one of the natural world’s most byzantine systems — the biological cell — has given him an edge in untangling the secrets of financial markets…

Share
Categories : Hedge Funds
Comments (0)

Investors positioned for the global recovery are in good company: it’s the most common bullish investment theme for hedge funds this summer, according to Lyxor Asset Management.

As interest in hedge funds rises again — they saw the biggest jump in demand among asset classes examined in a Credit Suisse Group AG report last week — Lyxor strategists including Jean-Baptiste Berthon set out current investment trends in a recent note…

Summer’s Most Common Hedge Fund Theme Is the Global Recovery

Share
Categories : Hedge Funds
Comments (0)
  • They had record 33% of portfolios in property, survey says
  • Investor wagers on hedge funds fell to record low 4%

Wealthy investors boosted bets on real estate and left hedge funds and equities as concern over high valuations and geopolitical risk push them back to basics.

They had 33 percent of their portfolios on average in real estate at the end of the second quarter, according to a survey by Tiger 21 released Tuesday. That’s a record since the group of high net-worth investors started measuring aggregate allocations in 2007.

Share
Categories : Hedge Funds, Real Estate
Comments (0)
  • Money managers most bearish on silver in almost 2 years: CFTC
  • Platinum net-short position reached a record as car sales slow

Gold is out of favor with money managers and it’s not the only precious metal facing investor exodus.

Hedge funds and other large speculators are hitting the exit as they brace for monetary tightening in the U.S. and Western Europe. Money managers are not waiting around for signs that the Federal Reserve may change its rate trajectory, as they turn bearish on precious metals. These charts show the trend in sentiment…

Share
Categories : Hedge Funds
Comments (0)
  • Ad hoc group holds $3.3 billion of commonwealth debt
  • Puerto Rico owes $13 billion of general-obligation debt

A group of hedge funds that owns $3.3 billion of Puerto Rico bonds disclosed in court documents the amount that each of them holds.

The disclosure is related to the territory’s May 3 bankruptcy, which will allow Puerto Rico and its agencies to reduce the $74 billion of debt left after years of economic decline and borrowing to cover operating expenses. The group includes distressed-debt buyers and municipal mutual fund Franklin Mutual Advisers LLC.

Share
Categories : Hedge Funds
Comments (0)

The hedge fund Elliott Management is hoping to block Warren E. Buffett’s $9 billion takeover bid for Energy Future Holdings, the bankrupt Texas power giant, by working on an even higher offer.

Elliott, the biggest creditor to Energy Future, on Monday published correspondence with the utility operator that included descriptions of an alternative takeover bid that it was working on, which carried a price of about $9.3 billion…

Elliott Hedge Fund Seeks to Challenge Buffett’s Bid for Energy Company

Share
Categories : Hedge Funds
Comments (0)
  • Rolfe began working as sales trader for prime finance section
  • He is the second recruit for the division in Tokyo since May

Citigroup Inc. hired Roland Rolfe from Barclays Plc in a bid to strengthen its brokerage business for global hedge funds in Japan.

Rolfe started working at Citigroup Global Markets Japan Inc. on Monday as a sales trader in the prime finance department, according to an internal memo obtained by Bloomberg. Mika Nemoto, a Tokyo-based spokeswoman, confirmed the contents of the document.

He is the second addition to Citigroup’s prime finance business in two months. The division serves hedge funds that are seeking to borrow stocks, obtain funding and execute transactions…

Share
Categories : Hedge Funds
Comments (0)
  • Hedge funds in the region are among world’s top performers
  • Greenwoods, Springs, SPQ China Funds gained more than 20%

Start your day with what’s moving markets in Asia. Sign up here to receive our newsletter.

China-focused hedge funds bounced back from their worst performance in five years and trounced global counterparts.

After an annual loss last year, Greater China hedge funds added more than 13 percent on average in the first half of 2017 to rank among the top-performing strategies in the world, according to preliminary data from Eurekahedge. Hedge funds from Greenwoods Asset Management, Springs Capital and SPQ Asia Capital were among standout performers with gains of 20 percent or more…

Share
Categories : Hedge Funds
Comments (0)
  • Pound drop ‘dangerous’ for U.K. retailers: hedge fund manager
  • Central banks ending QE will impact credit cycle, Odey writes

Crispin Odey, who made money for a second straight month by sticking to bearish equity bets, said the chance of a market crash is rising as growth slows and the Federal Reserve normalizes interest rates.

The credit cycle boosted by loose monetary policy has peaked and there’s a widespread slowdown in the auto, commodity, industrial and retail sectors, Odey wrote in a letter to investors. Unlike previous dips since the financial crisis, central banks aren’t responding by printing more money…

Share
Categories : Hedge Funds
Comments (0)
  • Absolute Return Fund ‘back to normal’ after 33% surge in 2016
  • Sees potential in REITs, energy bonds while awaiting next move

A Canadian hedge fund that earned fat returns last year betting on chaos in the financial markets is finding the world is too stable to try to repeat the feat in 2017.

Hanif Mamdani, who oversees about C$7 billion ($5.37 billion) as head of alternative investments at Royal Bank of Canada’s RBC Global Asset Management, said he’s waiting for opportunities while sitting on a pile of cash as a position heavy in energy company bonds unwinds. The C$1.6 billion PH&N Absolute Return Fund has returned 4 percent this year compared with 33 percent for all of 2016…

Share
Categories : Hedge Funds
Comments (0)
  • hirty-year Treasury yield breaks through 50-, 200-DMA
  • Speculators that went bullish the long end getting flushed out

Hedge funds that built up bullish long-end Treasury wagers to the highest outright level since 2008 are rushing for the exit as a government bond rout that started in Europe following a weak French debt auction is spreading to the U.S. market.

Share
Categories : Hedge Funds
Comments (0)
  • Five money managers said to depart firm following closure
  • Quant trade unit was set up to develop new money-making ideas

Man Group Plc has shut a quantitative trading unit after deciding to focus on other strategies, according to a person with knowledge of the matter.

The “quantitative incubating” unit, part of Man Group’s $18.8 billion AHL division, was opened about a year ago to develop new ways to make money, the person said, asking not to be identified because the information is private. The Oxon unit, led by Francois Moreau and Jaco Vermaak, gave internal capital to individual fund managers to use mathematical models to trade across asset classes. Moreau and Vermaak will stay at the firm and the five money managers at the unit have left, the person said…

Share
Categories : Hedge Funds
Comments (0)
  • Potential investors said to reach out, expressing interest
  • Sundheim will initially manage his own money in family office

Daniel Sundheim, the former chief investment officer at Viking Global Investors, is planning to start an equity hedge fund in the second half of 2018, according to a person familiar with the matter.

Sundheim will manage his own money in a family office until the fund launches, said the person who asked not to be identified since the matter is not public. Potential investors have reached out to the manager, expressing interest in a fund, the person said. Sundheim, who left Viking last week, will soon begin building his team…

Share
Categories : Hedge Funds
Comments (0)
  • Corvex said to build stake above 3% disclosure threshold
  • Activist investor said to oppose Clariant deal with Huntsman

Activist hedge fund Corvex Management has built a stake in Clariant AG in a move designed to undo the Swiss chemicals maker’s $6.4 billion planned takeover of Huntsman Corp., according to people with knowledge of the situation.

Corvex, which has built a stake in Clariant that exceeds the disclosure threshold of 3 percent, plans to push the company to explore alternatives to the deal including a potential sale, said the people, who asked not to be named because the situation is private.

Share
Categories : Hedge Funds
Comments (0)
  • Trump administration could rewrite some Dodd-Frank regulation
  • Low liquidity and volatility means hard slog for macro funds

Traders who fled banks for hedge funds are on their way back to Wall Street.

This month, Barclays Plc hired Chris Leonard, a founder of two hedge funds in the decade since he left JPMorgan Chase & Co., to turn around U.S. rates trading. At the end of last year, ex-bankers Roberto Hoornweg and Chris Rivelli, both of Brevan Howard Asset Management, left that London hedge fund for banks.

Share
Categories : Hedge Funds
Comments (0)
  • Trustee kept $90 million owed to investors in 20 securities
  • Money held to cover legal costs related to financial crisis

Wells Fargo & Co. surprised investors this week by withholding more than $90 million due to buyers of pre-crisis residential mortgage-backed securities.

The bank said it invoked its right as trustee to hold back funds to cover legal costs. The 20 transactions had a principal balance of $540 million and are among more than 2,000 deals involved in a lawsuit brought by bondholders including BlackRock Inc. and Pacific Investment Management Co. in 2014 to recover losses from the financial crisis.

Share
Categories : Hedge Funds
Comments (0)

LONDON — Over the past two decades, the hedge fund mogul Daniel S. Loeb has established himself as one of the biggest activist investors around. Now, he has set his sights on one of Europe’s largest corporate citizens: Nestlé, the global food giant.

In a letter to investors sent on Sunday, his Third Point hedge fund argued that Nestlé, a Swiss conglomerate whose wares range from candy to baby food to pet food, should sell its stake in L’Oréal and sell off nonessential operations as part of a broad shake-up.

Share
Categories : Hedge Funds
Comments (0)
  • Implied volatility surges for 1-week Australian dollar options
  • Volatility picking up around RBA, Riksbank policy meetings

Speculators looking to profit from the hawkish shift among global central banks have a fresh target: the Australian dollar.

With the pound, euro and Canadian loonie all surging more than 2 percent this week after officials signaled a bias toward tightening monetary policy, hedge funds are piling into Aussie options on expectations the Reserve Bank of Australia will follow suit. Implied volatility contracts with a tenor of one week surged to 8.0975 Thursday, the highest since June 14. Speculators added almost $1.5 billion of options on the Australian currency at a strike price of 77 U.S. cents, DTCC data show…

Share
Categories : Hedge Funds
Comments (0)

In 31 minutes a hedge fund managed by Martin Shkreli in 2012 went from a roaring success to an empty shell, one of his investors told a jury.

Sarah Hassan, 27, who gave Shkreli $300,000 to invest, said she got an email at 8:13 p.m. on Sept. 9, 2012, saying she was up $135,000, a return of 45 percent. At 8:44 p.m., Shkreli sent out a second email notifying Hassan and other investors he was shutting the fund down.

“We went through operational mishaps,” Shkreli said in the email. “There is no longer any cash in the funds.”

Share
Categories : Hedge Funds
Comments (0)
  • SocGen sees changing dynamics in producer and consumer hedging
  • Lower oil prices may deter future shale oil investments

The past month’s plunge in oil prices has turned the market for hedging upside down.

Oil producers have scaled back locking in future prices “considerably” since February, Societe Generale SA said in a report, citing a shift in options pricing driven by consumer companies like shippers and airlines. Late last year, sellers including U.S. shale drillers locked in prices in droves when benchmarks rose after OPEC announced plans to cut production.

Share
Categories : Hedge Funds
Comments (0)
  • Quantitative investment funds have record $500 billion assets
  • Performance varies, but average quant fund is flat this year

Believe the hype. Quants have never been more popular.

After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc.

In some ways, their meteoric rise is due to the same technological advances that are disrupting most industries. Faster computers and better data has enabled asset managers to automate skills that once were limited to market legends…

Rise of Robots: Inside the World’s Fastest Growing Hedge Funds

Share
Categories : Hedge Funds
Comments (0)
  • 74,300 block of call options purchased on Tuesday morning
  • Strategist suggests buy linked to June VIX options expiry

50 Cent spent roughly $3.8 million hedging against a selloff in risk assets this morning.

Not the rapper — the mysterious volatility buyer or buyers who earned the moniker due to their penchant for buying huge lots of VIX call options priced at roughly a half-dollar apiece.

The CBOE Volatility Index, known as the VIX or fear index, has remained at historically low levels for years. Explanations for the prolonged period of market tranquility have ranged from central bank largesse to the growth of social media…

Share
Categories : Hedge Funds
Comments (0)

Viking Global Investors, one of the larger hedge funds, is losing a top money manager and getting smaller in the process.

The hedge fund, led by O. Andreas Halvorsen, a protégé of the famed hedge fund manager Julian Robertson, notified investors on Monday that the firm’s chief investment officer, Daniel Sundheim, was leaving and that the firm would begin returning some $8 billion to investors, a Viking officer said.

Rose Shabet, chief operating officer at Viking, said Mr. Sundheim’s departure from the firm was “amicable.”

Mr. Sundheim, who has been with Viking for about 15 years, is leaving to pursue “entrepreneurial” ventures, the firm said in a letter to investors…

Share
Categories : Hedge Funds
Comments (0)
  • Ben Jacobs and Ning Jin to become co-CIOs, firm says in letter
  • Sundheim to pursue own entrepreneurial interests, firm says

Viking Global Investors, the hedge fund firm founded by Andreas Halvorsen, is returning about $8 billion to investors as Chief Investment Officer Daniel Sundheim departs to pursue his own business interests.

Sundheim, 40, who joined Viking as an analyst and rose through the ranks in his 15 years there, is leaving at the end of the month, according to a letter Viking sent to investors on Monday. Ben Jacobs and Ning Jin, two long-time portfolio managers, will take over the central portfolio as co-CIOs, the firm said…

Share
Categories : Hedge Funds
Comments (0)
  • Mexico said to ask banks for options quotes to fix 2018 prices
  • Mexico annual sovereign hedge is Wall Street largest oil deal

Mexico has taken the first step in its annual oil hedging program, asking Wall Street banks for price quotes on the put options it buys to lock in prices for the following year, according to people familiar with the matter.

Mexico usually buys put options from a small group of investment banks, starting as early as May but sometimes as late as July, in what’s considered Wall Street’s largest — and most secretive — annual oil deal

Share
Categories : Finance, Hedge Funds
Comments (0)
  • Asgard fund buys mainly AAA rated debt, takes no credit risk
  • Leverage is now about 11 times, goes long risk premiums

The best returns are not in the riskiest stocks but in the least risky bonds. But you can’t get them without leverage.

That philosophy helped Asgard Fixed Income Fund deliver a 19 percent return in the past year.

“That’s the core of our strategy,” Morten Mathiesen, 45, chief investment adviser at Copenhagen-based Moma Advisors A/S, said in a phone interview on Thursday. “The best risk-adjusted returns are actually the low vol trades.”

Share
Categories : Hedge Funds
Comments (0)

Have you ever watched an adult cat stare at a human baby and wondered what it could possibly be thinking? Well thanks to Ray Dalio’s ineffably beautiful LinkedIn blog, we may be able to answer that.

Naturally, my inclinations are to view Donald Trump’s policies through the lens of one who thinks about economies and markets, as well as from my vantage point of being a global and US citizen. My perspectives are colored by studying patterns and the cause-effect relationships of history and nature. My inclinations are to view things in a mechanistic way and to try to express the cause-effect relationships in principles and algorithms. While most cause-effect relationships can be expressed that way, not all can. Human nature is one that is difficult to express this way, and it is uniquely important now in Donald Trump’s presidency.

Share
Categories : Hedge Funds
Comments (0)

Also bribery, market structure, VIX, unicorns, lunching and learning and the Bowling Green menagerie.

Jobs for RMBS bankers.

Why do we fine banks lots of money for doing bad things? The fines are more or less paid by the shareholders, and it’s not like the shareholders did the bad things. But in theory, the shareholders don’t want to be fined, so they will hire directors who don’t want to be fined, who will hire executives who don’t want to be fined, who will hire employees who don’t do bad things. The banks are supposed to be integrated rational economic actors that want to avoid fines, and so the fines should deter them from hiring people who will do the things that incur fines…

Share
Categories : Hedge Funds
Comments (0)
  • Net-long position on WTI rose by most this year: CFTC
  • U.S. supply drop will be key to sustaining the enthusiasm

Hedge funds are giving OPEC some credit again.

Following four weeks of growing pessimism, bets on rising West Texas Intermediate prices jumped the most this year just as Saudi Arabia and Russia were mustering support for the deal they struck in Vienna last week, U.S. Commodity Futures Trading Commission data show.

What happens to U.S. stockpiles will be key to sustaining the enthusiasm, and the Saudis know that. In addition to prolonging a historical deal with allies, the kingdom plans to reduce exports to the world’s biggest consumer…

Share
Categories : Hedge Funds
Comments (0)