Ackman Wields Finance Tool With Morbid Past for New Venture (Bloomberg)
Bill Ackman is putting a modern-day spin on a centuries-old financial innovation with the special purpose acquisition company he plans to take public. His new SPAC — Pershing Square Tontine Holdings Ltd. — will reward investors who hang on to their shares after an acquisition is selected by giving them a fixed number of warrants. When shareholders cash out, those who remain receive more warrants, giving them an incentive to stay.
Toscafund Economist Savouri’s Confidence “Supercharged” by Sunak’s UK Coronavirus Finance Plan (Hedge Week)
Savvas Savouri, chief economist and partner at long-running UK hedge fund manager Toscafund, says UK chancellor Rishi Sunak’s economic update has “supercharged” his confidence. Sunak, a former hedge fund alumni of Theleme Partners and The Children’s Investment Fund Management, unveiled a GBP30 billion plan on Wednesday (8 July) aimed at saving jobs and kick-starting the UK economy following the unprecedented financial squeeze stemming from the coronavirus pandemic.
Here’s How Anthony Scaramucci’s SkyBridge Offloaded Stakes in 2 Funds After Credit Markets Seized Up (Business Insider)
SkyBridge Capital CEO Anthony Scaramucci‘s strongly-worded letter to Merrill Lynch last week illustrated not only the disagreements between the two firms about SkyBridge‘s fund of hedge funds, but also offered a glimpse into the often-opaque world of secondaries trading. Scaramucci wrote to Merrill Lynch after the wealth manager issued a report in late June recommending clients sell his firm’s main product, which picks other hedge funds to invest in, on the heels of a rocky spring performance. In April, the Wall Street Journal had reported that Citigroup cut ties with SkyBridge, which could lead to clients pulling $100 million.
Crispin Odey Hedge Fund’s Losses Deepen to 17.9% in First Half (Bloomberg)
Crispin Odey’s flagship hedge fund slumped to a 17.9% loss in the first half. The Odey European Inc. Fund fell in five out of six months, including a 7.3% drop in June, wiping out a surge during the market sell-off in March, according to a letter to investors seen by Bloomberg. Odey’s losses compare with a 3.5% slide across the industry that was led by led by event-driven and equity hedge funds, according to preliminary figures from the Bloomberg Hedge Fund Indices.
New Firm Touting Infrastructure-Debt Tokens (HFAlert.com)
A New York startup is developing an auction and trading service that promises to make infrastructure loans available to a broader set of investors, including hedge fund operators. The firm, Pontoro, aims to offer an initial loan pool in the vicinity of $300 million to $500 million during the first half of 2021. Its goal is to complete at least $20 billion of such trades within five years. Infrastructure loans, which often total hundreds of millions of dollars and at times can surpass $1 billion, typically are syndicated by banks among narrow groups of large buyers including pension systems and sovereign wealth funds. Pontoro proposes to break them into smaller amounts that would allow participation by small and mid-size investors while preserving the banks’ roles as originators.