Brevan Howard’s 2022 Profit Propelled by Unit’s Interest Rate Bets (Reuters)
An investment vehicle managed by hedge fund Brevan Howard delivered a successful 2022 on a surge in global borrowing costs, an investor presentation seen by Reuters showed. Most financial markets were roiled last year by the most aggressive pace of rate hikes from central banks such as the U.S. Federal Reserve in decades to contain surging inflation. Market volatility helped BH Macro (BHMG.L), a publicly listed feeder to the master fund of Brevan Howard Capital Management, to a 21.93% performance last year in the sterling denominated share class, the presentation showed.
FIS Board Shake-Up Continues as Part of Deal with Hedge Fund (JaxDailyRecord)
For the second time in a month, Fidelity National Information Services Inc. announced a shake-up of its board of directors as part of an agreement with an activist hedge fund. Mark Ernst, who was appointed as a director in December under the agreement with D.E. Shaw Group, resigned from the board Jan. 13 because of a conflict of interest. FIS disclosed in a Securities and Exchange Commission filing that a “former employer” asserted Ernst’s appointment violated a noncompete agreement.
Light Street Fell 54% Last Year, Rivaling Tiger Global’s Plunge (Bloomberg)
Light Street Capital Management’s hedge fund tumbled 54% in 2022, according to a person familiar with the matter, one of the industry’s worst performances last year. That drop rivals the 56% decline for Tiger Global Management, and is steeper than Lone Pine Capital’s 36% loss and Whale Rock Capital Management’s 45% slide.
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Man Group Takes Short Bet Against Uniphar (Business Post)
GLG Partners, the London hedge fund controlled by the Man Group, has taken a short bet against Uniphar, the Irish listed healthcare group. Stock market filings show that the company has taken short position against 0.63 per cent of Uniphar’s shares, which is worth around €5.6 million. A short trade is a risky transaction in which traders borrow shares from a broker and sell them on the open market, betting that the price will fall.
Hedge Funds Hit with $111 Billion in Outflows in 2022 as Fed Rate Hikes Rattle Investors (MarketWatch)
Hedge funds endured their third-worst year of outflows in about 15 years in 2022, as the Federal Reserve’s rapid-fire rate hikes rattled investors and pulled down asset prices, according to a new tally of fund flows by eVestment. Investors withdrew a giant $111 billion from hedge funds in 2022, one of the industry’s worst stretches since the painful outflows of 2008-2009, and heavy redemption years of 2016 and 2019.
