Bill Ackman’s Greatest Trade (Data Driven Investor)
How a hedge fund manager turn 27 million into 2.6 billion dollars within 30 days. From 2015 to 2018, hedge fund manager Bill Ackman had negative returns while the S&P 500 returns were positive. The investors started withdrawing their investment from his hedge fund because of his lousy performance. During these three years, his fund’s assets under management went from 16 billion to just 6 billion in late 2018.
Third Point Re-Invests in Disney, Pushes for Changes Including ESPN Spinoff (Reuters)
Hedge fund Third Point on Monday unveiled a new position in Walt Disney Co (DIS.N) and made a string of suggestions, ranging from spinning off cable sports channel ESPN to share buybacks to new board members, to improve the company’s fortunes. Billionaire investor Daniel Loeb, who runs Third Point, made a U-turn on Disney by buying a stake in the second quarter not long after he liquidated the firm’s position in Disney during the first quarter.
Jim Simons’ RenTech Fund halved Its Tesla Stake Last Quarter – and Dumped Meme Stocks GameStop and AMC (Business Insider)
Renaissance Technologies halved its Tesla stake, dumped GameStop and AMC Entertainment, and bet big on Warren Buffett‘s Berkshire Hathaway in the second quarter, a new SEC filing reveals. RenTech, which ranks among the largest and most successful hedge funds in history, was founded by Jim Simons, a former NSA codebreaker and MIT math professor. The quantitative fund employs algorithms to decide many of its trades, resulting in sweeping changes to its stock portfolio each quarter.
Crypto Venture Company Dragonfly Buys Hedge Fund, Rebrands (Bloomberg)
Digital-asset venture capital firm Dragonfly said it acquired MetaStable Capital, one of the oldest investment funds in cryptocurrencies, and completed a rebranding. The acquisition comes as the digital-asset industry consolidates, said Haseeb Qureshi, managing partner at Dragonfly. Terms of the deal weren’t disclosed. Dragonfly added the firm has dropped “Capital” in its name under a new logo.
Soleus Is Launching a New PE Fund (Institutional Investor)
The little-known healthcare firm has been one of the sector’s top performers. A low-profile but very successful healthcare hedge fund is raising money for a new private equity fund. The firm, Soleus Capital Management, has also told investors that it anticipates closing its hedge fund to new investors within the next few months.