Alan Howard Steps Down as Hedge Fund CEO to Focus on Trading (Bloomberg)
Alan Howard, whose Brevan Howard Asset Management once managed $40 billion, is stepping down as chief executive of the firm he founded and has been struggling to revive. Aron Landy, currently the chief risk officer, will assume the CEO role, the firm said Tuesday in a U.K. regulatory filing. The Brevan Howard Master Fund Ltd. has climbed 7.5% this year through September.
The Market will Drop 25% If Warren Wins the Election, Says Hedge Fund Legend Paul Tudor Jones (CNBC)
Billionaire Paul Tudor Jones on Monday joined a growing chorus of Wall Street regulars in forecasting major losses for the U.S. stock market if Democrat Elizabeth Warren wins the 2020 presidential election. The S&P 500 would sink about 25% if the Massachusetts senator beats President Donald Trump next year on investor fears over her proposed wealth tax, Jones said at the Robin Hood Investors Conference, according to a Bloomberg News report.
Billionaire Hedge Fund Manager Ray Dalio Says Global Economy Faces ‘Scary Situation’ (Bloomberg)
Billionaire hedge-fund founder Ray Dalio says the global economy is under threat from an explosive mix of ineffective monetary policy, a rise in the wealth gap and climate change. The combination will lead to a “scary situation” over the next decade, according to Dalio, whose investment management firm, Bridgewater Associates, is the world’s biggest hedge fund. Dalio made the comments at an investment forum in Saudi Arabia.
Hedge Funds Provide a Smoother Route to Returns than the Rollercoaster Ride of Equities, Says SkyBridge (Hedge Week)
Investing in equities can be a wild ride. Like any rollercoaster you’ve ever ridden, the slow climb up is a serene experience. The higher you get, the better the view. Wonderful. Then you descend, the G force kicks in, and you start to scream with exhilaration; fear and adrenaline forming a heady mix. Hedge fund investing, by analogy, is less a rollercoaster ride, and more a steady drive in a Rolls Royce; designed specifically to get the investor to their end destination as smoothly as possible. Despite this, traditional media continue to compare hedge funds to equities which are having another great year; equities are up 16 per cent whereas hedge funds are up approximately 7.5 per cent.
Hedge Funds Fight for Asia Talent With Bonuses, Training (Bloomberg)
In a glass-walled room at Point72 Asset Management LP’s outpost in Hong Kong, five fresh-faced graduates pore over spreadsheets and give tentative answers to questions about cash flow and the cost of capital. These would-be masters of the universe are the first participants in Point72’s Asia Academy associate program, the hedge fund firm’s latest salvo in an intensifying war for regional talent.
California Governor Calls on Warren Buffett to Purchase Bankrupt PG&E (UtilityDive.com)
Dive Brief: While calls mount for Pacific Gas & Electric (PG&E) to become a public utility, Governor Gavin Newsom, D-Calif., said he would welcome a sale of the bankrupt company to investor Warren Buffett. Berkshire Hathaway Energy Corp, a subsidiary of Berkshire Hathaway Inc., which is owned by Buffett, has significant holdings in California and is “one of the few that are in a position to make a significant run at this,” Newsom told Bloomberg BusinessWeek. But experts warned that Berkshire would be entering a complex set of circumstances given the ongoing wildfires, power outages and bankruptcy proceedings the California utility faces.
Hedge Funds See 6th Consecutive Quarter of Outflows (Axios.com)
Hedge funds saw overall negative returns for the second month in a row in September and investors continued to pull their money out, data from research firm eVestment shows. Why it matters: It’s the latest piece of negative data for an industry that appears to have its best days behind it. By the numbers: More than $12 billion was redeemed from the global hedge fund industry in September, bringing year-to-date flows to -$76.86 billion.