How One of London’s Newest Hedge Funds Might Win Big on Rising Rates (Financial News)
A new London-based hedge fund has its eyes on rising rates as its “biggest opportunity” after launching last week. Andromeda Capital Management was looking to gain from big bets on credit markets even before the European Central Bank hiked interest rates by 75 basis points on 27 October to counter rising inflation.
Elliott Lifts Swedish Match Stake as PMI Holds Firm on Terms (Bloomberg)
Philip Morris International Inc. is sticking to its guns with the terms of its takeover of nicotine-pouch maker Swedish Match AB, potentially setting the scene for a battle with Elliott Investment Management LP over the $16 billion deal. The Swiss tobacco company said Friday it won’t waive a 90% shareholder acceptance level needed to complete the acquisition, even though Elliott has disclosed a 10.5% stake in Swedish Match — enough to block the deal if it wants to.
Crypto Hedge Fund Arca Nearly Doubles Sales for Flagship Fund Despite LUNA Exposure (CoinDesk)
Arca, a crypto hedge fund with around $500 million in assets under management, came close to doubling sales of its flagship fund in one year, even after telling investors it had been exposed to the Terra ecosystem, which collapsed in May. The Arca Digital Assets Fund, which invests in the tokens of crypto companies, had raised $191.7 million as of Oct. 24, up from $109 million at the beginning of October 2021, the firm said in a filing this week with the U.S. Securities and Exchange Commission. The number of investors in the fund, which is still open to new investors, increased from 333 to 576 between the filings.
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Hedge Fund Redemptions Double Year-on-Year in September (Hedge Week)
Hedge fund saw net outflows of $21 billion in September, more than twice the usual September average recorded between 2014 and 2021, according to the latest asset flows report from eVestment. September was also the fourth consecutive month negative hedge fund flows. There report highlights that although 2022 started well in terms of inflows, by the end of Q3, net outflows reached $63 billion, putting 2022 on track for the second-largest annual net outflow since 2009.
$14 Billion Schonfeld is Launching a New Credit Unit as the Hedge Fund Continues its Growth Tear (Business Insider)
$14 billion Schonfeld Strategic Advisors has rolled out a credit unit within its new macro trading business that launched earlier this year. The new group will be led by former Anchorage Capital Group trader Andrew Silverman. He will oversee a team of around six people, including Richard Aubrey, head of credit research. Silverman and Aubrey joined in July and August, respectively, following Anchorage shutting its $7.4 billion hedge fund last December.
