Einhorn Says Greenlight Underperformance Is Worst Since 2000 (Bloomberg)
Hedge fund manager David Einhorn said a shift in favor of value stocks may soon be coming even after his firm posted its worst underperformance in almost two decades. “While we’ve never underperformed like this, our prior worst underperformance compared to the S&P came in March of 2000, which was a similar environment,” Einhorn said Wednesday in a conference call discussing results for Greenlight Capital Re Ltd., the Cayman Islands-based reinsurer where he is chairman. “While the environment has remained difficult with growth stocks accelerating their outperformance against value stocks this year including February, we think a reversion may finally be coming soon,” the value investor added.
Exclusive: Investment Star Alan Howard’s Comeback Hits Headwind (Reuters)
NEW YORK (Reuters) – A fund managed directly by Alan Howard, one of Britain’s best known investors, lost nearly 9.0 percent net of fees from May through December 2017, according to information provided to Reuters by a spokesman for two New York City employee pension funds. The Brevan Howard AH Fund LP was launched last year amid client defections from Brevan Howard Asset Management LLP, Howard’s London and Jersey-based firm. The appeal of the new fund, which helped attract new money, was that it was managed solely by Howard, a so-called macro trader who made his name through Brevan Howard’s impressive profits during the financial crisis of 2008.
Coatue May Start Fund After Missing Out on Netflix, Baidu Gains (Bloomberg)
Philippe Laffont, whose flagship hedge fund returned about 24 percent in 2017, is exploring new ways to structure Coatue Management’s investment vehicles after missing some dramatic, long-term returns in its technology portfolio. Coatue would have had larger profits over several years had it not cut stakes in Tencent Holdings Ltd., Netflix Inc. and Baidu Inc. to rebalance risk, Laffont wrote in a letter seen by Bloomberg. His lament comes even as Coatue’s $8.9 billion flagship fund outperformed its peers in 2017 and rose 9.9 percent in January.
Bridgewater’s Bet Against Europe Shines Light on Patchy Short-Selling Rules (Reuters)
LONDON (Reuters) – The world’s largest hedge fund Bridgewater Associates caused a stir last week when it disclosed it had made $22 billion (15.78 billion pounds) worth of bets against European companies, including giants such as Unilever (ULVR.L) and Siemens (SIEGn.DE). But patchy rules on the practice known as “short-selling” mean it is difficult to tell if Bridgewater’s positions are a bet against Europe specifically, or broader scepticism on global equities.
Steven Cohen Loses Bid to Seal Lawsuit Alleging Sexism At Point72 (Reuters)
NEW YORK (Reuters) – A U.S. judge on Tuesday rejected billionaire investor Steven A. Cohen’s request to temporarily seal a lawsuit accusing his hedge fund firm Point72 Asset Management LP of sexism toward women. U.S. District Judge Analisa Torres in Manhattan said Point72 failed to overcome the presumption under the U.S. Constitution’s First Amendment that the complaint by Lauren Bonner, its head of talent analytics, should be accessible to the public.