U.S. Hedge Fund Says Both Shinsei and SBI at Fault in Takeover Battle (The Japan Times)
Dalton Investments, a $3.4 billion U.S. investment firm, says it’s still on the fence over whether to support Shinsei Bank Ltd.’s management or SBI Holdings Inc. in the battle for control of the Japanese lender. Neither side has given a convincing argument for its backing, said Jamie Rosenwald, a Dalton co-founder and portfolio manager. Shinsei should have found an alternative buyer willing to pay more, while SBI should bid for the entire company rather than just a partial stake, he said.
Hedge Fund Balyasny Bans Hiring From Ken Griffin’s Citadel Unit (Bloomberg)
Balyasny Asset Management has imposed a ban on hiring from rival hedge fund Citadel’s Global Fixed Income business, according to an internal memo seen by Bloomberg. The investment firm told headhunters earlier this month not to recommend potential staff from the Citadel unit, according to the memo. The ban extends to anyone who works there or supports the business, as well as those that worked for the unit after May 15 but have since left.
Fund Manager Explains Why He’s Still Short Tesla, Ark ETF and Facebook (CNBC)
David Neuhauser, chief investment officer at Chicago-based hedge fund Livermore Partners, has defended his short position in Tesla, Facebook and Cathie Wood’s Ark Innovation ETF, arguing that all could be vulnerable in the event of a market downturn. As of Wednesday’s close, Tesla is up more than 54% in 2021 while Facebook, which recently rebranded as Meta, has climbed almost 25%. The Ark Innovation ETF is down 6.24% year-to-date and famed “The Big Short” investor Michael Burry recently exited short positions on both Tesla and Ark.
Month in Review – October 2021 (Hedge Nordic)
Stockholm (HedgeNordic) – Nordic hedge funds gained 0.7 percent on average (94 percent reported) in October, marking a return to positive trajectory after recording their worst monthly performance since March last year in September. Two hedge funds recorded heavy losses during the month. The Nordic hedge fund industry is now up 5.1 percent for the year with only two months left until the end of the year.
Hedge Fund Net Inflows Top USD23bn in First Three Quarters as Volatility Increases (Hedge Week)
The global hedge fund industry saw positive net inflows of USD6 billion in Q3 amid increasing volatility, totaling net inflows of USD23.7 billion in the first nine months of 2021, according to data from the Citco group of companies (Citco), the asset servicer with USD1.6 trillion in assets under administration (AuA). Analysing global hedge fund industry performance patterns, trade and treasury volumes, and investor flow trends – Citco’s Q3 2021 Hedge Fund Report found that all hedge fund strategies and most AuA categories on the Citco platform delivered positive returns in Q3. While the quarter showed relatively good hedge fund performance, it was nonetheless a departure from Q1 and Q2: funds on the platform delivered a 1.15 per cent overall weighted average return in Q3, versus 8.25 per cent and 6 per cent in Q1 and Q2 respectively.