Hedge Fund Legend Ray Dalio Warns of a US Credit Crunch – and Says It could Tank Markets and Spark a Recession (Business Insider)
Ray Dalio warned a painful credit crunch could hammer financial markets and spark a recession. The billionaire investor said a surge in government-bond sales could cause private credit to dry up. Dalio also flagged the risks posed by US political tensions and overseas conflicts. American households and businesses could suffer a brutal credit crunch that slashes asset prices and tanks the economy, Ray Dalio has warned. The billionaire investor suggested private-sector lending could dry up if the heavily indebted US government ramps up bond sales to finance its spending plans.
Rokos Capital COO Andrew Brown Resigns (Financial News)
Brown will leave the firm around the turn of the year, a spokesperson for Rokos confirmed. Rokos Capital Management chief operating officer Andrew Brown is set to leave the hedge fund around the end of 2022. Brown, who joined the firm as a senior analyst five years ago, has been partner and chief operating officer of the hedge fund since April 2022.
Eisler to Shut Its Oldest Hedge Fund to Focus on Multi-Strategy (Bloomberg)
Eisler Capital will wind down its first hedge fund to focus entirely on its multi-strategy money pool as the firm pivots to an approach that’s increasingly popular with investors. The London-based firm has told clients in the Eisler Capital fund that it will return money in the strategy at the end of this year, according to an internal memo seen by Bloomberg. Eisler Capital Multi Strategy fund, which allows it to charge lucrative pass-through fees, is now the sole focus, the memo said.
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Dan Och Hates His Former Protégé So Much He’s Willing To Bring His Own Decisions Into Disrepute To Slander Him (Deal Breaker)
Sculptor Capital Management accuses Dan Och of having something of a messiah complex when it comes to the hedge fund he founded and which was formerly named for him. Indeed, there is certainly something of the divine in Och’s self-conception, insofar as in his retelling of the Sculptor story, he cannot be held to the same standards as mere mortal non-founders. The Africa-wide bribery scandal that unfolded under his leadership may have turned the former Och-Ziff’s shares into pink sheets in all but name, but depressed stock prices under his successors are unacceptable.
Cannot Turn Off Tightening Just Yet (Hedge Nordic)
Stockholm (HedgeNordic) – Fixed-income hedge fund manager Thomas Pohjanen believes policy interest rates will continue to rise in Sweden and Europe, while the United States fed funds rate is already approaching the lower end of a neutral range. Central banks around the world are on a path of tighter monetary policy in an effort to get to grips with surging inflation. Inflation rates in Sweden and the Eurozone are higher than in the United States. “In the US, inflation has landed between 8 and 8.5 percent over the past three months, well above the inflation target of 2 percent,” according to Pohjanen’s latest letter to investors.
Align Capital Partners Wraps Up the Third Fund at $620m (Opalesque)
Align Capital Partners (ACP), a growth-oriented private equity firm, has closed its third private equity investment fund, Align Capital Partners Fund III, at $620 million, 12.7% higher than its target size of $550 million. ACP raised its latest oversubscribed fund in just two months with the support of existing investors and a substantial personal commitment from the team. According to a media release, with the closing of ACP III, Align Capital Partners has raised approximately $1.4 billion since the Firm’s founding in 2016.
Huge Investment Funds Take Step Back from Israel (Globes English)
Funds like Tiger Global, SoftBank and Coatue have drastically reduced their investment in Israeli startups and growth companies. Tiger Global, one of the leading investment funds during the Covid era, reported at the start of October that senior partner John Curtius is leaving his position next year.
Odey Shuts Funds to New Money as Market Becomes More ‘Challenging’ (Proactive Investors)
Hedge fund manager Crispin Odey has stopped taking new money into three of his funds claiming it has become much more difficult to trade in current market conditions. Odey has hogged the headlines in recent weeks both for the spectacular performance of his funds and also for the fact that ex-chancellor Kwasi Kwarteng used to work for him.
LightPoint Financial Technology Launches Hedge Fund in a Box (PRNewswire)
NEW YORK, Nov. 2, 2022 /PRNewswire/ — LightPoint Financial Technology, the company that helps buy side firms and family offices reimagine their trading and operations, has launched LightPoint 360. The new solution enables new launch funds to focus on raising capital and running their core business securely from anywhere. With access to leading-edge business and technology infrastructure on the road or from a desktop, funds can now streamline their interaction with their prime brokers and fund administrators regardless of their location.
Large Hedge Funds Have Outperformed This Year. So What? (Institutional Investor)
A quick look at some of the well-publicized data on hedge funds shows that the largest funds are turning in the best returns this year. While true, a deeper dive into the numbers paints a far more nuanced picture for investors. In fact, investors shouldn’t conclude too much from what’s happening in 2022. Little has changed about the historical outperformance of smaller funds.
A Key Insider Just Bought $150,397 Of This Soaring Dividend (Forbes)
We contrarian dividend buyers love it when an insider loads up on their own (ideally washed out!) stock. Especially when that stock is: Throwing off its highest yield in years. Growing its payout at a 9% annualized rate, and… Tied to one of the biggest megatrends there is: our never-ending addiction to mobile data. We’re seeing all three of the above with cell-tower REIT Crown Castle International (CCI), which has been knocked down some 37% in this selloff. That’s driven its yield up to 4.4% – just a shade below all-time highs!
Group President At This Health Care Company Sells $2.20M of Stock (Benzinga)
Charles J Hall, Group President at HCA Healthcare (HCA), reported a large insider sell on November 1, according to a new SEC filing. What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Hall sold 9,838 shares of HCA Healthcare. The total transaction amounted to $2,198,793.
