Hedge Fund Looks for Bottom in Turkish Lira (Bloomberg)
Hedge fund manager Peter Kisler is looking to this week’s Turkish central-bank meeting for a signal to start buying the lira. The question is whether Turkey will let its currency weaken further or hike rates to defend it, said North Asset Management’s Kisler. The London-based investor sold all its Turkish assets before capital outflows started accelerating in March, fueling the lira’s decline to a record against the dollar.
$10 Billion Stock-Picking Fund Soroban Loaded Up on Bill Ackman’s New SPAC — Here are Highlights (CNBC)
Soroban Capital Partners built a 5.6% stake in the biggest special purpose acquisition company ever — Bill Ackman’s $4 billion Pershing Square Tontine – to jump in on Wall Street’s latest craze. The top stock picking fund is also making big bets on the economy. Here are the highlights.
Hedge Fund Third Point Sells ADRs in Sony: SEC Filings (Reuters)
BOSTON/TOKYO (Reuters) – U.S. hedge fund Third Point LLC, which had been pressing Sony Corp (6758.T) to make changes including spinning-off of its chip unit, has sold all of its American Depositary Receipts (ADRs) in the Japanese electronics company, regulatory filings showed. But the fund, headed by one of the world’s highest-profile activist investors, Daniel Loeb, still owns a large portion of the company’s Japanese shares, a person familiar with the fund told Reuters.
Hedge Fund Performance Update: July 2020 (Preqin.com)
The Preqin All-Strategies Hedge Fund benchmark gained 3.29% in July, pushing the YTD performance to +2.88%. CTAs recovered from losses across all structures in June (-0.68%), returning +3.13% in July. This factsheet presents the hedge fund performance benchmarks for July 2020. Plus, the YTD and 12-month return figures for all top-level strategies, structures, denominations, and size classifications.
Citigroup Gets Freeze on Brigade Money in $900 Million Error (Bloomberg)
Citigroup Inc. scored a temporary court order freezing $175 million that Brigade Capital Management LP declined to return after the bank accidentally transferred more than $900 million to Revlon Inc. lenders. The order followed a hearing Tuesday in which the bank and the hedge fund faced off over Citigroup’s expensive blunder. The two will be back in court on Wednesday as the judge determines the next steps in their legal battle, including whether to hold a hearing on the bank’s request for a preliminary injunction forcing Brigade to give the money back while the case proceeds. Citigroup sued Brigade on Monday.
PriorNilsson HFs Move in Tandem (Hedge Nordic)
Stockholm (HedgeNordic) – The month of July was the fourth consecutive month of positive returns for global equity markets coming off the March low. The three hedge funds under the umbrella of PriorNilsson Fonder – PriorNilsson Idea, PriorNilsson Yield and PriorNilsson Balans – have all followed suit and turned in a fourth consecutive positive month in July to recoup the March losses. “The central banks’ massive asset purchase programs and fiscal stimulus measures implemented in most countries have given the market the support and belief that the crisis will be overcome,” says portfolio manager PO Nilsson, who founded PriorNilsson Fonder with Torgny Prior in 2002. Nilsson points out that the majority of companies in both the United States and Sweden beat the market expectations prevailing before the second-quarter earnings season kicked off.
Futures Exchange Reaches End of the Line (HFAlert.com)
OneChicago, the only U.S. exchange for futures pegged to single stocks, is closing its doors. The firm will discontinue operations on Sept. 21 with a final trading date of Sept. 18, when 99.4% of its contracts with open interest are set to expire. Its staff is working with clearing partners and brokers to unwind the other 0.6% of yet-to-be-settled contracts before that date. OneChicago already delisted all products without open interest on Aug. 14. The shutdown reflects a feeling among OneChicago’s owners – Cboe, CME Group and Interactive Brokers – that trading volume had fallen too steeply in recent years to justify the continued operation of the business. OneChicago had been handling less than 1 million contracts per month this year following a gradual decline from about 1.5 million during the 2015-2017 period.