Beware of Corporate Debt, Even Non-Junk, Says David Einhorn (AI-CIO.com)
David Einhorn sniffed out fixed income trouble in 2008 and sees more ahead in the US corporate bond market. In fact, the hedge fund chieftain is shorting corporate debt. So downbeat is Greenlight Capital, his firm, about corporates that it is betting on price tumbles for both investment-grade and junk-rated paper. And he points a finger at ratings agencies for going easy on companies that load on debt. Right now, of course, defaults are low for corporate bonds, both investment-grade and not. And bond issuance has been robust amid low interest rates. A good chunk of those new bonds are to fund acquisitions, whose debt is a burden going forward.
Morning Coffee: Top Hedge Fund’s HQ isn’t Necessarily Where You Think it is. Signs that the BNP/Deutsche Deal is Turning Sour Before it Even Happens (eFinancialCareers.com)
“Investors do now generally consider us to be London-headquartered”, states the most recent letter from Caxton Associates. Which might have come as a bit of a surprise to long-term clients, as once upon a time Caxton was as Noo Yawk as they come – nobody who remembers meeting their star portfolio managers of the 00s, Jake and Abe Eisenstat, who later left to found a fund called Dabroes (Da Bros, get it?), could have thought of them as in any way English.
Why the World’s Largest Hedge Fund Founder Is Bullish on Gold (ETF Daily News)
From Mike Hammer: Ray Dalio is one of those people whom you either admire or ignore. While he doesn’t have quite the cult following of Warren Buffett, everyone who’s anyone on Wall Street reads everything he produces, because, well, when he’s right he’s RIGHT. As you probably know, Dalio’s firm Bridgewater Associates, was one of the few that did well during the last big market crash, in 2008-09.
Hedge Fund Manager Kyle Bass Says a US-China Trade Deal Can’t be Reached (CNBC)
Hedge fund manager Kyle Bass is doubtful a trade deal between the U.S. and China could be reached and believes the Federal Reserve’s rate cuts are less effective these days. “Every deal that the Chinese have signed up with us since their inception into the WTO since 2001, China never lives up to their promises,” the founder and chief investment officer of Hayman Capital Management said on CNBC’s Closing Bell on Thursday.
Citadel Alum Greg Blotnick Launches Brattle Street Capital (Opalesque.com)
Citadel alum Greg Blotnick is launching a new fund Brattle Street Capital. The fund takes long and short positions in small and mid-cap consumer stocks like retailers. Blotnick tells Opalesque New Managers that he feels like it’s an ideal time to take high conviction positions in consumer names. Small to midsize consumer companies are splitting into two groups – those that are generally recession proof and others that are teetering on the brink. Brattle Street’s long book will take positions in strong, high-growth companies. On the short side, Blotnick is taking positions in companies that are near bankruptcy.
Hedge Funds Need Not Be Gated Communities (The Epoch Times)
Some of the most lucrative parts of capitalist markets are off-limits to most Americans, not because of the money, but because of regulations. Investing in private equity, which includes high-performing vehicles such as hedge funds, is only allowed for the wealthiest among us: those who earn more than $200,000 annually or have a net worth of at least $1 million. Regular Americans have been unable to invest in some of the world’s most successful tech companies before they went public. Until recently, Uber, Lyft, WeWork, and other startups were the domain of so-called accredited investors, who make up little more than 8 percent of U.S. households. This select demographic owns 70 percent of private wealth in the country-$45.5 trillion.
Strategic Report on Hedge Fund Software Market to Grow Significantly by 2024 Focusing on Top Vendors – UpKeep Technologies, Eze Software (AMarketResearchReport.com)
Research N Reports has published an analysis of new statistical data titled as, Hedge Fund Software Market. The report scrutinizes the industry competence from distinctive angels which include types, size, application, and end-users. The report uses some significant techniques such as SWOT and Porter’s five analysis to examine the data effectively. North America, Latin America, Europe, Asia-Pacific, and India, and frontrunners ruling the industry in these regions have been examined on the basis of profit margin and investments.