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.
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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.
Three Arrows Co-Founder Re-Emerges With Tweet Accusing Liquidators of ‘Baiting’ (Bloomberg)
Zhu Su, the co-founder of bankrupt crypto hedge fund Three Arrows Capital, broke an almost month-long silence with a tweet accusing court-appointed liquidators of “baiting.” In his first Twitter posting since June 15, Zhu shared a screen shot of what appears to be an email exchange between the fund’s legal counsel at Advocatus Law LLP and an executive in charge of liquidating Three Arrows.
Short-Seller Muddy Waters Takes Short Position in Renewable Energy Firm Hannon Armstrong (Reuters)
NEW YORK, July 12 (Reuters) – U.S. short-selling firm Muddy Waters said on Tuesday it had acquired an undisclosed short position in energy company Hannon Armstrong Sustainable Infrastructure Capital (HASI.N). Currently, seven brokerages rate the Maryland-based energy company “buy” or higher, three have it on hold and one on a sell rating, with an average target price of $55, according to Refinitiv.
AIMA Sets Out Blueprint for Hong Kong to Retain Its Status as a Leading Global Financial Centre (Opalesque)
Opalesque Industry Update – The alternative investment industry has experienced outstanding growth in Hong Kong, report AIMA and PwC in a new report. The city manages the lion’s share of alternative assets within Asia Pacific, with more than 740 alternative asset managers having established offices there. The city is also home to more than half of the major hedge funds located in Asia Pacific. However, Hong Kong lags the New York metropolitan area and London in terms of assets under management (AUM).
Tuesday 7/12 Insider Buying Report: ANNX (Nasdaq.com)
On Thursday, Annexon’s Director, Muneer A. Satter, made a $9.42M purchase of ANNX, buying 2,453,988 shares at a cost of $3.84 each. Satter was up about 19.8% on the buy at the high point of today’s trading session, with ANNX trading as high as $4.60 at last check today. Annexon is trading up about 9.5% on the day Tuesday. This buy marks the first one filed by Satter in the past year.
Insiders Buying Rocket Companies, Schnitzer Steel And This Energy Stock (Benzinga)
Rocket Companies: The Trade: Rocket Companies, Inc. (RKT) CEO Jay Farner acquired a total of 46,000 shares at an average price of $8.68. To acquire these shares, it cost around $399.28 thousand. Earthstone Energy: The Trade: Earthstone Energy, Inc. (ESTE) Director Jay F. Joliat acquired a total of 20,237 shares at an average price of $11.66. To acquire these shares, it cost around $235.96 million.
Top Performing Emerging Market Fund Sounds Alarm on Debt Defaults (Bloomberg)
More debt defaults are going to roll across emerging markets because countries can’t cope with the sudden increase in borrowing costs, according to Man Group, which runs one of the best-performing funds in the industry. About 10% of dollar-denominated sovereign debt is at a high risk of default, said portfolio manager Lisa Chua in an interview with Bloomberg. Russia and Sri Lanka have already defaulted this year, and there’s now a record 19 developing countries with sovereign debt trading at distressed levels.
