Hedge Funds Are Betting Elon Musk Will Be Forced to Buy Twitter (Bloomberg)
Hedge funds including David Einhorn’s Greenlight Capital and Pentwater Capital Management are wagering that Elon Musk won’t get his way this time. Musk, the world’s richest person and a renowned sparring partner with regulators over securities laws, is trying to back out of his agreement to buy Twitter Inc. for $44 billion. Several hedge funds have purchased stock, options or bonds — speculating that Musk will lose a trial scheduled to begin Oct. 17 in Delaware Chancery Court.
War on Wall Street: Why Billionaire Daniel Och is Suing His Former Hedge Fund for Paying His Own Protégé Too Much (Independent.co.uk)
In 2016, the billionaire hedge fund manager Daniel Och agreed to pay nearly $2.2m to settle charges that he had broken US laws against bribing foreign government officials. Och, US regulators said, had been warned by his own lawyer and his chief financial officer not to do business with an “infamous” Israeli businessman who regularly played bribes to public servants of the Democratic Republic of Congo, but did so anyway.
The Hedge Fund Industry is Facing a Shakeout as Underperforming Shops Shutter. Here’s What a $13 Billion Hedge Fund is Doing to be One of the Winners. (Business Insider)
The writing is on the wall for hedge funds whose performance have taken massive hits over the last few months. The hedge fund industry at large is in the early innings of a correction and more consolidation, Ilana Weinstein, founder and CEO of executive search firm The IDW Group, said at a SALT conference panel on Tuesday, highlighting the massive drops in performance by growth investing giants including Tiger Global, Maverick Capital, Lone Pine, and D1 over the last few months. Chase Coleman’s Tiger Global Management is down 49.8% for the year so far, while Dan Sundheim‘s D1 Capital Partners has lost 28% over the same period, Bloomberg reported earlier this month. The S&P 500 and the average hedge fund, according to Hedge Fund Research, dropped 18% and 4% year to date, respectively.
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World’s Biggest Hedge Fund Bridgewater: A Large Recession Is Coming To America, Will Be Difficult (Moguldom)
Economists, analysts, and market participants are divided on whether the U.S. is headed for a recession but the world’s biggest hedge fund is betting that the U.S. is the epicenter of a global financial bubble, making it the country most at risk for a crushing recession when the bubble bursts. Greg Jensen, co-chief investor of Bridgewater Associates, predicted that asset prices won’t bounce back to pre-pandemic highs. He spoke Monday, Sept. 12 at the SALT hedge fund conference in New York.
Rhenman Strengthens IR Function (Hedge Nordic)
Stockholm (HedgeNordic) – Rhenman & Partners Asset Management has hired Erica Nordström Löf as Relationship Manager to assist the day-to-day management of healthcare-focused hedge fund manager’s investor relations function headed by co-founder Carl Grevelius. Nordström joins Rhenman & Partners from Ålandsbanken Abp, where she worked as Private Banker. She spent most of her career at UBS in Switzerland, most recently as Client Advisor and Director for ultra-high-net-worth individuals in Northern Europe.
Third Point boss Loeb Cools on ESPN Spin-Off Plan (Hedge Week)
Third Point founder Daniel Loeb has cooled on his plan to see Disney’s sports broadcaster ESPN spun off into its own standalone business, according to reports. Last month, the activist investor submitted a set of demands to Disney, including the ESPN plan, after his New York-based hedge fund acquired a $1 billion stake in the entertainment giant. Other proposals included accelerating the timetable for acquiring Comcast’s minority stake in Hulu, and fully integrating Hulu into Disney.
Hedge Funds Face Tighter SEC Clearing Rules on Treasuries Trades (Bloomberg)
Hedge funds would have to start centrally clearing many of their transactions in US Treasuries under a new regulatory plan designed to protect against a market meltdown. The Securities and Exchange Commission on Wednesday voted unanimously in favor of proceeding with a plan to give clearinghouses — which sit between buyers and sellers and ultimately backstop the transactions — a much bigger footprint in the $24 trillion dollar market for American government bonds. The draft regulations would make trading safer and limit the chance of any single firm harming the broader financial system, according to the SEC. If finalized, the regulations would represent a significant overhaul for the market and are likely to draw pushback from parts of Wall Street.
NS Quant Closes Down in Trendy Environment (Hedge Nordic)
Stockholm (HedgeNordic) – Systematic trend-following strategies as a group have enjoyed an outstanding 2022 so far, but the industry still experienced diverging fortunes this year. Finnish systematic managed futures fund NS Quant has now been closed down after struggling to capture trends in what has broadly been a fertile environment for quantitative trend-following hedge funds in 2022. Down 12.2 percent in the first eight months of 2022, NS Quant has seen its assets under management drop below €2 million during the summer.
Hedge Fund Investors Look for Protection in Uncorrelated Strategies (Institutional Investor)
“Right now, there are a lot of investors concerned about both the equity and the fixed income marketplace and think there could be further sell-offs in both markets,” said Don Steinbrugge, CEO and Founder of Agecroft Partners. Investors in hedge funds are seeking out more defensive strategies amid a volatile market environment. Commodity trading advisors and global macro strategies have seen the largest increases in investor interest over the course of the past year, according to Agecroft Partners, a consulting firm, which released data from a recent survey of investors. Respondents to the survey were asked which types of hedge fund managers they were currently interested in meeting.
Wednesday 9/14 Insider Buying Report: RDFN (Nasdaq.com)
On Tuesday, at Redfin, there was insider buying on Friday, by Director James Slavet who bought 100,000 shares at a cost of $8.40 each, for a trade totaling $840,430. Redfin is trading down about 0.6% on the day Wednesday.
Over $29 Million Bet On Energy Transfer? 3 Stocks Insiders Are Buying (Benzinga)
Energy Transfer: The Trade: Energy Transfer LP ET Executive Chairman Kelcy Warren acquired a total of 2,428,747 shares at an average price of $12.04. To acquire these shares, it cost around $29.24 million. Medpace Holdings: The Trade: Medpace Holdings, Inc. (MEDP) CEO August J Troendle bought a total of 113,114 shares at an average price of $160.99. To acquire these shares, it cost around $18.21 million.
