Hedge Funds Shun the Private Markets (Institutional Investor)
Previously active firms in the venture capital market haven’t made any new investments over the past month or two. A number of hedge fund firms known for aggressively investing in private companies have abruptly halted these efforts. More than a half-dozen firms didn’t make a single new venture capital investment in May, while several haven’t made a private investment this entire quarter.
Warren Buffett and Ray Dalio Buy Up Tech Stocks as Dan Loeb Sells (CMCMarkets.com)
Hedge funds such as Dan Loeb‘s Third Point LLC have been moving away from the tech giants amid the growth stocks selloff. However, some fund managers, like Ray Dalio‘s Bridgewater Associates and Warren Buffet‘s Berkshire Hathway, have decided to go against the grain and are pouring money into big tech.
Tiger Global Plans to Raise a New Fund for Private Investments as Public Markets Sour (Fortune)
After closing a $12.7 billion fund mere months ago, Tiger Global is planning to go back to market. The firm intends to raise a new fund this year or next, a person familiar with Tiger told me in a recent feature story for Fortune. There has already been interest from the firm’s existing LP base, the person says. While the firm’s public hedge fund has experienced $17 billion in losses this year, there’s a different dynamic in the other, separate side of its business—the private side, where there have been many up rounds and portfolio companies are experiencing significant growth, according to the person. (A Tiger spokeswoman declined to comment on performance and didn’t respond to a request for comment on whether Tiger planned to raise another fund).
Friday 5/27 Insider Buying Report: CVNA, DTC (Nasdaq.com)
At Carvana, a filing with the SEC revealed that on Tuesday, See Remarks Paul W. Breaux purchased 15,000 shares of CVNA, at a cost of $27.59 each, for a total investment of $413,850. Breaux was up about 20.7% on the purchase at the high point of today’s trading session, with CVNA trading as high as $33.30 in trading on Friday. Carvana is trading up about 6.4% on the day Friday. This buy marks the first one filed by Breaux in the past year. And at Solo Brands, there was insider buying on Wednesday, by Chief Financial Officer Somer Webb who bought 70,372 shares for a cost of $4.17 each, for a total investment of $293,116. This buy marks the first one filed by Webb in the past year. Solo Brands is trading up about 14.5% on the day Friday. So far Webb is in the green, up about 33.2% on their buy based on today’s trading high of $5.55.
Executives Sell More Than $30M Of 5 Stocks (Benzinga)
SBA Communications: The Trade: SBA Communications Corporation (SBAC) Director, Chief Executive Officer & Pres Jeffrey Stoops sold a total of 30,000 shares at an average price of $344.07. The insider received around $10.32 million from selling those shares. Berry Corporation: The Trade: Berry Corporation (BRY) 10% owner Thomas Gahan sold a total of 741,000 shares at an average price of $11.08. The insider received around $8.21 million from selling those shares.
SoFi: Major Insider Buying And The Big Banks Are Buying Also Per 13F Filings (Seeking Alpha)
SOFI’s CEO, Anthony Noto, has made 10 insider purchases since 3/4/22, and other insiders have been accumulating shares as well. The Q1 13F filings indicate there was a large amount of institutional buying as companies such as Morgan Stanley loaded up on shares of SOFI. The sooner President Biden makes a decision on student debt the better. If $10,000 is eliminated, it’s bullish for SOFI because the payments will start again.
SEC Halts Alleged Ongoing $39 Million Fraud by Hedge Fund Adviser (HedgeCo.net)
(HedgeCo.Net) The Securities and Exchange Commission has announced fraud charges against Detroit-based EIA All Weather Alpha Fund I Partners LLC (EIA) and its sole owner, Andrew M. Middlebrooks, for allegedly engaging in a multi-year scheme that included the misappropriation and misuse of investors’ funds. To halt this alleged ongoing fraud, the SEC sought, and on May 19, 2022 obtained, emergency relief from the U.S. District Court in the Eastern District of Michigan, including a temporary restraining order against EIA and Middlebrooks and an asset freeze against the defendants and named relief defendants.
