Stock Hedge Funds Erase Billions With Another Year of Losses (Bloomberg)
Back-to-back declines reach more than 40% at some firms. Whale Rock, Light Street and Perceptive among big losers. In 2020, tech-heavy hedge fund Light Street Capital Management posted a banner year on bets including Amazon.com Inc. and Alibaba Group Holding Ltd. That was the last of the good times. The firm, along with other once-high-flying stock hedge funds, is coming off a second year of losses that erased billions of dollars in clients’ wealth.
Hedge Funder Pokes Fun At Cathie Wood, Expects ‘Million Bazillion Percent’ Returns With His Strategy (Benzinga)
Clifford Asness, co-founder and manager of the hedge fund AQR capital management, called out ARK Invest founder Cathie Wood for her prediction regarding artificial intelligence’s impact on the U.S.’s gross domestic product. Wood tweeted back in May 2022 that AGI (artificial general intelligence) would help increase the GDP by a staggering 30-50% per year. For context, last year’s GDP was $23 trillion. A 50% increase would bring us well above $34 trillion. It’s unclear exactly how Wood ended up at the 30-50% increase in GDP number, but it does sound outlandish at first site.
Doug Kass Predicted Some of the Biggest Surprises of 2022: Here’s His 2023 List (The Street)
Hedge fund manager keeps his 21-year tradition of penning top surprises for the new year. Will gold climb to $3,000 an ounce by late next year? Will the forecast for a first-half-of-2023 downturn and a second-half upturn be flipped on its head? Will oil make a surprise rally in the second half of the year? Those would all be big surprises, right? But shouldn’t we be used to surprises by now? Shouldn’t we even be bracing for them? Indeed, as we say goodbye to 2022, one thing is clear: It was a year of “boundless surprises.”
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Macro Hedge Funds on Course for Record Year as Others Struggle (Hedge Week)
This year’s big interest rises have set bond and currency trading macro hedge funds on course to record their best annual gains since the global financial crisis in 2008, according to a report by the Financial Times. The same interest rates rises though, have caused major problems for equity specialists and mainstream investors. Billionaire trader Chris Rokos, who recovered from losses last year to gain 45.5 per cent in 2022, is among the year’s big macro winners, with the Brevan Howard co-founder on track for his best year since launching his own fund, which now has $15.5 billion in assets, in 2015.
Sam Bankman-Fried Borrowed $546 Million from his Hedge Fund to Buy a Robinhood Stake (CNN)
When Sam Bankman-Fried bought a nearly 7.6% stake in Robinhood, the popular stock-trading app, earlier this year, he financed the deal with more than half a billion dollars borrowed from his own hedge fund — the entity that prosecutors say was illegally funneling customer funds from its affiliated platform, FTX. In an affidavit that emerged Tuesday, Bankman-Fried said he and FTX co-founder Gary Wang borrowed more than $546 million from the hedge fund, Alameda Research, which they used to purchase the Robinhood shares via a holding company primarily controlled by Bankman-Fried.
