Ray Dalio: 3 Pieces of Advice for How to Manage Your Savings in a Coronavirus Recession (CNBC)
Though the stock market is on the rebound of late as more and more states reopen, hedge fund billionaire Ray Dalio has made it clear that he expects the ongoing coronavirus pandemic to leave behind an economic downturn that could be the worst since the Great Depression. “We’re not going to go back to normal” once the pandemic subsides, Dalio previously told CNBC Make It, arguing against the idea of a “v-shaped recovery” where the economy would rebound quickly once the country fully reopens.
Bill Ackman Has Outgrown His Hero (Deal Breaker)
The Ackmanaissance, that remarkable and improbable turnaround in Pershing Square Capital Management founder Bill Ackman’s fortunes from the depths of humiliation and failure to the heights of the hedge fund world, did not begin, as is commonly believed by romantics, when he even more improbably wrested the affections of a brilliant and beautiful woman from the arms of Brad Pitt. Instead, the spark was a 50-year-old letter written by Warren Buffett. This will not surprise the more seasoned Ackmanologists, who know well of his debt to and aspirations to become a successor to the Oracle of Omaha. The relationship has had its ups and downs (and then some more downs, and some more after that), but Ackman remains, at heart, a man of the Berkshirean persuasion.
The DE Shaw Group Closes First Onshore China Investment Fund (Hedge Week)
The DE Shaw Group, a global investment and technology development firm, has concluded fundraising for its initial onshore investment fund in China. The firm, a pioneer in quantitative investing established more than 30 years ago, has been active in mainland China since the mid-2000s, with a presence in Shanghai for more than a decade. “We’re grateful for the opportunity to manage capital on behalf of a broad range of onshore Chinese investors, including institutions, asset managers, and high-net-worth individuals, and we’re pleased the fund is off to a strong start,” says Julius Gaudio, Executive Committee member, the DE Shaw group.
Hedge Fund Manager Drops Control of Fortune for $1 Trillion Job (Bloomberg Law)
Nicolai Tangen has almost crossed the finish line to become one of the most powerful people in global finance. The 53-year-old London-based hedge fund manager signed a contract that requires some sacrifices on his part in exchange for the title of chief executive of Norway’s $1 trillion wealth fund, the world’s biggest. The entity that hired him and that manages the fund, Norges Bank, presented a set of terms it hopes will appease critics and allow Tangen to start as CEO on Sept. 1. The Supervisory Council of Norges Bank, its watchdog, is due to respond on June 11.
Warren Buffett Loses a Star Hedge Fund Billionaire as a Berkshire Investor (Observer.com)
Billionaire hedge funder Bill Ackman, who enjoys the reputation as the “baby Warren Buffett” on Wall Street and is a longtime investor in Buffett’s investment conglomerate, Berkshire Hathaway, has decided to part ways with his idol. On Wednesday, Ackman revealed in a conference call that his investment firm, Pershing Square, had dumped its entire $1 billion stake in Berkshire Hathaway, along with smaller positions in other companies, including Blackstone and Park Hotels & Resorts. The transactions were first reported by Bloomberg.