Anthony Scaramucci Says Markets Like the Idea that There May Not be a ‘Blue Wave’ (CNBC)
The rally in world markets shows investors are happy that there may not be a “blue wave” outcome in the U.S. elections, said Anthony Scaramucci, founder and managing partner of Skybridge Capital. NBC News has projected that Democrats will keep their House majority, but Republicans — which are slightly ahead in the Senate race – look likely to win control of the upper chamber. Separately, Scaramucci also said modern era polling has to be “thrown in the garbage,” after the presidential race turned out to be much closer than polls suggested.
Bribery Victims Prevail in Restitution Claim Against Hedge Fund (The Wall Street Journal)
A federal judge approved a restitution payment of more than $138 million to investors in a Congolese mine, bringing to a close a yearslong legal battle over their status as victims of a bribery scheme by hedge fund Sculptor Capital Management Inc. Final approval for the restitution came Wednesday at a sentencing hearing presided over by District Judge Nicholas Garaufis. The payment is expected to be divided among more than 300 former investors.
A Blue Wave Would’ve been a Disaster Scenario for US Markets Because of Biden’s Corporate Tax Plans, Hedge Fund Manager Kyle Bass Says (Business Insider)
A blue wave Senate would’ve been a “disaster scenario” for US markets because of Joe Biden’s corporate tax plans, famed hedge fund manager Kyle Bass told CNBC. The Democratic Party’s chances of taking back the US Senate, which has been in Republican hands since 2015, is increasingly looking slim. Republicans have currently won 48 seats and Democrats have 47, putting the latter further away from the 51-seat majority required for a blue wave victory.
Einhorn Blames Tesla ‘Mania’ for Hurting Greenlight Re’s Performance (Barron’s)
Greenlight Capital Re, a reinsurer run by hedge fund titan David Einhorn, reported earnings Wednesday evening. Results fell year over year as Greenlight’s short position in electric-vehicle giant Tesla hurt investment returns. Einhorn is a vocal Tesla (ticker: TSLA) bear and has been short the stock for a long time. The bearish position “detracted from performance,” said Einhorn on Greenlight Re’s (GLRE) Thursday morning third-quarter conference call. He blamed retail investors for the loss, calling stock performance evidence of a “mania.” What’s more, Einhorn is staying short a basket of “highflying stocks.”
The Ups and Downs of Brexiteer Hedge Fund Mogul Crispin Odey (Financial News)
High-profile hedge fund manager Crispin Odey is stepping back from running his fund as he fights a sexual assault charge. Odey, who founded Odey Asset Management in 1991, will take charge of a new inflation-focused fund, in addition to his existing flagship European fund, the company said on 3 November. The firm is also creating a new, separate subsidiary, to be known as Brook Asset Management, subject to regulatory approval. It will begin by renaming certain existing funds and putting them under the new subsidiary.
Make Way for Mezzanine in Africa and the Middle East (Preqin.com)
Private debt is new to the region, but Omar Rifai at Gulf Capital says a number of GPs are laying solid foundations for future growth in the asset class, putting their faith in carefully structured deals. Across Africa and the Middle East, mezzanine debt is emerging as a compelling way to invest in fast-growing lower-middle-market companies. We expect private debt to play a big role in private capital markets over the next five years. While private equity has many attractions, shareholders of many fast-growing lower-middle-market companies that reach $5-10mn in EBITDA are unable or unwilling to take on dilutive capital due to a difference in valuation expectations or private equity’s increasing focus on acquiring controlling stakes.
Victory Capital Acquires Equity Manager THB Asset Management (Opalesque.com)
Victory Capital, a diversified global asset management firm with $132.7 billion in AUM has agreed to acquire THB Asset Management, the Connecticut-based equity manager with $435 million in AUM. The transaction is expected to close in early 2021 and be immediately accretive to earnings, said a press note from Victory. “Consistent with Victory Capital’s model, THB’s investment team will become employees of the Company and the newly created Franchise will be subject to a compensation agreement based on revenue sharing. No material consideration will be paid for the assets,” it said.
Like a Thief in the Night (Hedge Nordic)
Stockholm (HedgeNordic) – Thematic-focused equity fund St. Petri L/S is running well ahead in the race for the top-performing Nordic hedge fund of 2020 after gaining 8.7 percent in October even as equity markets were broadly down. Although the fund is now up 66 percent for the year, this is no time for celebration for the duo managing St. Petri L/S out of Copenhagen. Michal Danielewicz and Jens Larsson are now preparing themselves for an imminent – yet broadly ignored – risk: the re-emergence of inflation.