Bill Ackman Calls Carried Interest Loophole an ’Embarrassment’ Under New Tax Law (Canada Today)
Washington Democrats may have found an unlikely ally in their bid to end a longstanding tax rule enjoyed by some of Wall Street’s wealthiest executives: Hedge fund billionaire Bill Ackman. The Pershing Square Capital founder on Thursday slammed the so-called carried interest “gap” — a tax treatment that allows private equity and hedge fund managers to pay a reduced tax rate on their share of profits from fund investments.
Crypto: PayPal’s Ambitions Could Be Crushed By A Powerful Player (The Street)
PayPal’s crypto offering could be facing its last days if activist hedge fund Elliott Management has its say. The hedge fund recently took a stake in the beleaguered payments behemoth, according to the Wall Street Journal. The amount of the stake and what Elliott paid was not disclosed. Elliott could encourage PayPal to eliminate its crypto offering that was launched in 2021. One reason that Elliott was drawn to the payments company is that it has $8 billion of cash and short-term investments.
Scotiabank Canadian Hedge Fund Index Ended June -0.89%, -2.8% YTD (Opalesque)
Opalesque Industry Update – The Scotiabank Canadian Hedge Fund Index ended June 2022, down -0.89% MOM on an asset-weighted basis and down -3.95% MOM on an equal-weighted basis. The comparable benchmark indices were both down for the month, with the S&P TSX 60 Total Return Index and S&P 500 Total Return Index posting decreases of -8.33% and -8.25% respectively. The Scotiabank Canadian Hedge Fund Index provides a comprehensive overview of the Canadian Hedge Fund universe. Returns are calculated using an equal-weighting and an asset-based weighting of the funds.
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Most Hedge Fund Subsectors Lost Money and Investor Capital in May as Redemptions Increased (Hedge Week)
Hedge fund redemptions increased slightly in May to $27.53 billion, 0.54% of industry assets. Despite the broader industry trend, some hedge fund subsectors did manage to add to assets in May, with multi-strategy funds leading the way at +$2.90 billion, 0.42% of assets. The managed futures industry had a better experience, recording the fourth consecutive month of inflows (+$1.79 billion). Despite a broader industry trend that saw hedge fund redemptions accelerate slightly in May to -$27.53 billion (-0.54% of industry assets), some hedge fund subsectors did manage to add to assets over the month, according to the latest Barclay Fund Flow Indicator published by BarclayHedge.
Downfall: Three Arrows Capital’s Collapse Explained (Capital.com)
What made one of the top firms in the cryptosphere, which at its peak managed around $18bn in crypto assets, tumble and fall towards the exploration of a financial bailout or asset sale? Three Arrows Capital (3AC), a crypto hedge fund, tumbled when it suffered heavy losses due to the collapse of LUNA and Terra as it held a significant position in the two assets, roughly $560m at its peak.
