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.
Hedge Funds Tell UK Court that Argentina Manipulated Economic Data (Reuters)
Four hedge funds that are suing Argentina over payments they claim are due on instruments linked to the country’s GDP told a London judge on Monday the country had a “propensity” to manipulate economic data to save billions of dollars. The funds, Palladian Partners L.P., HBK Master Fund L.P., Hirsh Group LLC and Virtual Emerald International Limited, filed suit in 2019, claiming the South American republic owed them payments under euro-denominated securities linked to Argentina’s gross domestic product in 2013.
Another Cathie Wood Fund Exits Sea After $175 Billion Selloff (Bloomberg)
Funds managed by Cathie Wood are exiting the beleaguered Southeast Asian e-commerce giant Sea Ltd. one by one. Ark Next Generation Internet ETF on Thursday sold its last few shares in Sea, almost a quarter after flagship Ark Innovation ETF exited from the company in June, according to Ark trading data compiled by Bloomberg.
Aristides Capital Moves to Downtown Louisville Office (BizJournals)
A hedge fund is relocating its offices to Downtown Louisville. Aristides Capital LLC is moving into an office at 118 E. Main St. across from Humana Waterside Building. The company is a registered investment advisor that manages two hedge funds. It was launched in 2008 by Christopher Brown, originally opening an office in Toledo, Ohio, and eventually moved to Seattle, prior to coming to Louisville. Aristides Capital has between $150 million and $200 million in assets. While it still has the Toledo operation, Ashley Overstreet, investment operations and client relations associate with Aristides Capital, said its main office will be in Louisville.
Winners of Hedgeweek US Awards Announced (Hedge Week)
The winners of the annual Hedgeweek US Awards, which recognise excellence among fund managers and service providers in the US across a wide range of categories, have been announced. Voting for the awards, which were presented at an exclusive ceremony and networking event today (27 October), at the University Club of New York, was conducted via an online poll of the entire Hedgeweek userbase, with participants asked to make their choice among the shortlisted firms in each category. The manager categories cover a wide spectrum of investment strategies and fund types encompassing the hedge fund, multi-manager, emerging manager and liquid alternatives universes. The service provider categories span all the key areas of the broader hedge fund industry ecosystem.
Friday 10/28 Insider Buying Report: DX, WDFC (Nasdaq.com)
On Wednesday, Dynex Capital’s CEO and Co-CIO, Byron L. Boston, made a $160,023 purchase of DX, buying 14,500 shares at a cost of $11.04 a piece. So far Boston is in the green, up about 9.1% on their purchase based on today’s trading high of $12.04. Dynex Capital is trading up about 3.2% on the day Friday. Before this latest buy, Boston bought DX at 5 other times during the past twelve months, for a total investment of $382,365 at an average of $15.76 per share. And at WD-40, there was insider buying on Wednesday, by CEO Steven A. Brass who purchased 632 shares for a cost of $158.16 each, for a total investment of $99,957. WD-40 is trading up about 1.6% on the day Friday. Brass was up about 1.0% on the buy at the high point of today’s trading session, with WDFC trading as high as $159.72 in trading on Friday.
Adobe EVP Sold $865K In Company Stock (Benzinga)
Scott Belsky, EVP at Adobe (ADBE) reported a large insider sell on October 26, according to a new SEC filing. What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Belsky sold 2,711 shares of Adobe. The total transaction amounted to $865,134.
