Ken Griffin’s Citadel and Citadel Securities’ Profiles have Risen with GameStop Frenzy. Now the Firms have Caught the Attention of Lawmakers. (Business Insider)
It seems that wherever you look in the GameStop frenzy, there’s a Ken Griffin connection. In the past two weeks, the concentrated effort of retail traders, mobilized in large part on Reddit’s WallStreetBet’s forum and other social media sites, helped push shares of heavily-shorted companies like GameStop, AMC, and others to dizzying heights.
New York Hedge Fund Founder Pleads Guilty to Neiman Marcus Fraud (Reuters)
NEW YORK (Reuters) – A New York hedge fund founder pleaded guilty on Wednesday to bankruptcy fraud for pressuring a rival not to bid for assets belonging to Neiman Marcus creditors so he could buy them at a lower price, the U.S. Department of Justice said. Daniel Kamensky, 48, of Roslyn, New York, entered his plea before U.S. District Judge Denise Cote in Manhattan. Kamensky had been a principal at Marble Ridge Capital LP, a specialist in “distressed” investing that once had $1.2 billion of assets under management.
Hedge Fund of the Year: Saba Capital Management (Risk.net)
In late 2019, Boaz Weinstein was seeing mispricings in credit markets on a scale he’d never seen before – the kind of twisted values that meant spreads on Sabre, a newfangled travel-tech company, were the same as for a solid credit like fast-food chain McDonald’s. “In my career, I had never seen such a tight packing between double-Bs that you would want to short and single-As you’d want to go long,” he says.
British hedge fund earns £540 million from Selling Half of Its Bitcoin Holdings (Nairametrics)
A leading British hedge fund, Ruffer Investment Management has disclosed that it earned £540 million from its Bitcoin investment in less than 60 days but it has reduced the size of its crypto holdings. In a report credited to British based newspaper, The Telegraph, Ruffer saw “immediate fireworks” after investing about 2.5% of its assets into Bitcoin about three months ago, resulting in millions of dollars in gains as the price of Bitcoin rose past $20,000 and on to a new all-time high of more than $42,000 in January.
The GameStop stock saga was mostly viewed through the lens of small retail investors finally putting one over on big hedge fund manager. Axios Re:Cap speaks with Ray Dalio, founder of hedge fund giant Bridgewater Associates, to get his perspective on the past week and whether it reflects a fundamental rot in the stock market and U.S. economy.
Pain and Gain from Irrationality (Hedge Nordic)
Stockholm (HedgeNordic) – Thematic investing has been a growing – and rewarding – trend among investors in recent years, allowing them to capitalize on structural changes that are reshaping business models, industries and economies. The rush to thematics, facilitated by the spread of exotic exchange-traded funds, has also supplied inefficiencies in many industries such as the complex, multifaceted and wide-ranging energy sector. Oslo-based long/short equity fund AAM Absolute Return under the umbrella of Oslo Asset Management relies on a bottom-up approach to seek and capitalize on such absolute and relative-value inefficiencies.
Crypto Hedge Fund ARK36 Delivers Over 118 per cent ROI in Q4 2020 (Hedge Week)
During the last quarter of 2020, Cyprus-regulated hedge fund ARK36 D delivered more than 118 per cent return on investment, focusing exclusively on the bitcoin and cryptocurrency asset markets. This was the fund’s first operating quarter since launch in October 2020. Additionally, ARK36 has seen a fourfold increase in investors in that period and has delivered more than 50 per cent returns since the start of the new year. The fund’s Danish management, including Ulrik Lykke, Mikkel Mөrch, Jacob Skaaning, and Marck Bertelsen, believes that the potential of cryptocurrencies as an asset class will continue to grow over time and is thereby mainly trading the long side of these assets. The fund aims at delivering risk-adjusted returns to clients by minimising the exposure to the risk in the markets as needed. ARK36’s proven investment strategy has allowed the company to secure a commitment from investors of over 12M EUR since its launch.