BlueCrest’s 95% Gain Swells Michael Platt’s Wealth to $10 Billion (Bloomberg)
Asking clients to take their billions away has worked wonders for Michael Platt. Free to take bigger and bolder bets, Platt has guided his private investment firm BlueCrest Capital Management to blockbuster gains year-after-year. Returns soared to 95% in a tumultuous 2020 when a global pandemic roiled markets, according to a person with knowledge of the matter. His personal wealth has doubled in the past year to about $10 billion, according to Bloomberg estimates.
Bill Ackman Pushes 3 Retailers to Get Directly Involved in U.S. Coronavirus Vaccine Drive (The Motley Fool)
Bill Ackman, the famed activist investor who founded and leads Pershing Square, has some thoughts about how the U.S. can get on top of the coronavirus outbreak. In a tweet that has garnered quite a bit of attention, Ackman wrote that Target (NYSE:TGT), Walmart (NYSE:WMT), and Kroger (NYSE:KR) should get directly and comprehensively involved in the distribution and administration of the vaccines. “Why don’t .@Target. @Walmart. @kroger become our vaccine distribution hubs,” he wrote. “They have large parking lots, trained Rx staff and weekly customer visits. Outdoor shots would minimize risk and inspire wary customers to get one. Every day we wait more die and variant risk increases.”
Brevan Howard to Double Fees for Listed Fund After Record Year (Bloomberg)
Brevan Howard Asset Management is seeking to double the fixed fees it charges clients in a listed fund after a year of record gains. The BH Macro Ltd. fund, which invests its money in Brevan Howard’s flagship hedge fund, has been asked to pay an annual 2%, according to a company statement Friday. The current charge is 1%, according to an investor letter, after a reduction in 2017 following mediocre returns.
Canadian Hedge Fund Vivid Energy Returns 116% in 2020 (Opalesque.com)
Canadian asset manager Vivid Capital Management said that its hedge fund Vivid Energy Fund returned 116% in 2020 with bets on solar power and other clean energy stocks. According to a press release from the Toronto-based asset manager, it has repositioned its energy fund to gain exposure to the clean energy transition since late 2019. “Focused on navigating the energy transition through the right mix of growth, technological innovation, undervalued hydrocarbons, and supply chain raw materials, the recalibrated Vivid Energy Fund will continue to operate under an open energy and transportation-focused mandate,” said the release.
New ‘Asset Class’ Gives Hedge Funds Second Revenue Stream from Existing Strategies (Hedge Week)
Hedge funds can now add to their traditional fee model to boost revenue from successful strategies and attract new clients, with a new ‘asset class’ developed by Branton Kenton-Dau, Principal of Kenton-Dau LLC. The new asset class has different regulatory requirements which means hedge funds can now open their performance to a wider investor audience. The company claims several leading US hedge funds have already expressed interest.
Hedge Fund Gurus Warn of Tech Bubble (AFR.com)
The fast-growing influence of popular technology businesses on equity markets is raising questions over whether rising systemic risks will result in a spectacular bust in 2021. The confluence of government stimulus in the form of cash handouts to consumers, free brokerage, social media groups disintermediating traditional financial advice, and an unprecedented wall of cash into index tracking funds all threaten to blow a stock bubble up further.