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.
Hedge Fund Manager Doug Kass Thinks it could be Tough Sledding for Stocks in the Short Term (The Street)
In December, hedge fund manager Doug Kass issued an unexpected declaration. In his annual “Surprises” feature on Real Money Pro, he said that stocks could mount a surprising rally in the first half of 2023. Today, that prediction looks prescient. But it drew more than its fair share of criticism at the time. After a dismal first half last year, stocks appeared to find their footing (again) in October. However, a sell-off in early December fueled by tax-loss harvesting and looming redemptions frustrated bulls (again).
Lazard Appoints BlackRock Veteran as Head of North American Distribution (Hedge Week)
Lazard Asset Management (LAM) has appointed Jennifer Ryan as Managing Director and Head of North American Distribution, effective immediately. Based in New York, Ryan joins from BlackRock where she held leadership roles in both the firm’s US and UK Institutional Client Businesses. In her newly created position at LAM, Ryan reports to CEO Evan Russo. As a member of the senior leadership team for Lazard’s Asset Management business, she will be responsible for LAM’s business development in North America and will oversee its Institutional Client Group, Financial Institutions Group, Alternative Investments Sales, and Consultant Relations Group.
David Einhorn Had His Best Year in a Decade. How to Play His Revival (Barron’s)
Value investor David Einhorn had his best year in a decade in 2022. His hedge fund Greenlight Capital returned 36.6%, helped by short positions in a group of high-flying stocks, some winning long positions in the coal sector and Twitter.
British Hedge Fund Cuts Stake in Ryanair (Busines Spost)
Edoardo Mercadante, the owner of the British hedge fund Parvus Asset Management, has whittled down his stake in Ryanair, stock exchange filings show. At one point, Parvus had a stake worth nearly a billion euro, which it held through financial derivatives known as equity swaps.
Thursday 1/26 Insider Buying Report: LMT, JEWL (Nasdaq.com)
At Lockheed Martin, a filing with the SEC revealed that on Wednesday, Director John Donovan bought 556 shares of LMT, at a cost of $451.20 each, for a total investment of $250,867. Donovan was up about 2.1% on the buy at the high point of today’s trading session, with LMT trading as high as $460.53 in trading on Thursday. Lockheed Martinp is trading up about 1.4% on the day Thursday. Before this latest buy, Donovan purchased LMT at 3 other times during the past twelve months, for a total cost of $751,335 at an average of $424.96 per share. And at Adamas One, there was insider buying on Monday, by CEO John Grdina who purchased 40,000 shares at a cost of $2.67 each, for a total investment of $106,780. This buy marks the first one filed by Grdina in the past twelve months. Adamas One is trading up about 1.1% on the day Thursday.
Insiders Selling DocuSign, Adobe And 2 Other Stocks (Benzinga)
DocuSign: The Trade: DocuSign, Inc. (DOCU) Director Daniel Springer sold a total of 151,612 shares at an average price of $55.08. The insider received around $8.1 million from selling those shares. Adobe: The Trade: Adobe Inc. (ADBE) 10% owner Chairman and CEO Shantanu Narayen sold a total of 15,000 shares at an average price of $346.61. The insider received around $5.2 million as a result of the transaction.
