Bill Ackman to Wind Up SPAC, Return $4 Billion to Investors (CNBC)
Billionaire investor William Ackman, who had raised $4 billion in the biggest-ever special purpose acquisition company (SPAC), told investors he would be returning the sum after failing to find a suitable target company to take public through a merger. The development is a major setback for the prominent hedge fund manager who had initially planned for the SPAC to take a stake in Universal Music Group last year when these investment vehicles were all the rage on Wall Street.
Senvest’s June Swoon (Institutional Investor)
The 2021 top performer more than doubled the S&P 500’s loss last month. The Senvest Master Fund had a disastrous June. One of last year’s top performers, the hedge fund headed by Richard Mashaal and Brian Gonick lost more than 17 percent last month, more than double the loss suffered by the S&P 500, according to a hedge fund database.
Cheyne Readies New Hybrid Credit Fund for European Midcaps (Bloomberg)
Cheyne Capital Management LLP is looking to raise 750 million euros ($754 million) for a new fund, focused on lending to smaller European firms not backed by private equity. The investment approach will see London-based Cheyne provide single and multi-tranche financing across the capital structure, from first lien loans to preferred equity, according to people familiar with the matter who asked not to be identified discussing private information.
BlackRock, J.P. Morgan Face Squeeze on Profits at China Funds (Pensions&Investments)
Global asset managers including BlackRock and J.P. Morgan Asset Management are facing mounting pressures on profitability in China even as they gain a bigger footing in the nation’s fast-growing mutual fund industry. The hurdles are piling up: higher distribution fees, new entrants stepping into the arena, and a growing war for talent. On top of that, declines in the local stock market imposed deep losses on new funds, even as a recent rally has started to ease the pain.
Hedge Funds Expected to Profit from Strong Investor Inflows, Says New Study (Hedge Week)
New research from leading quant technology provider SigTech reveals strong optimism from hedge funds for increased investor inflows. SigTech conducted a global survey of hedge funds with $194 billion in assets under management collectively. Some 83% of respondents expect institutional investors to increase their allocation to hedge fund strategies over the next two years, with nearly one in four (23%) expecting a dramatic increase. The primary reason identified for institutional investors increasing allocation to hedge funds over the next five years was the expectation that they can generate absolute returns in any market environment. The research further found investors believe hedge fund strategies play an important role in mitigating certain risks and improving overall portfolio diversification.