Billionaire Investor David Einhorn Breaks Down Why He Just Started Shorting the US Credit Market (Business Insider)
David Einhorn has earned the attention of the investment community. The billionaire president and founder of Greenlight Capital, which oversees $2.5 billion, garnered his reputation through an array of prescient market calls and double-digit returns. And over time, he’s managed to stay one step ahead of the market. Einhorn revealed his latest big market call in his second-quarter investor letter, telling clients he has opened a new short position against both investment-grade and high-yield corporate credit – an area he says has been looking frothy.
BMO’s Hewitt keeps watch on Woodford and Darwall (Citywire.co.uk)
Peter Hewitt, the investment trust picker in charge of BMO Managed Portfolio (BMPG), is keeping a close eye on fund managers Neil Woodford and Alexander Darwall as both go through very different periods of uncertainty. The more uncomfortable situation for Hewitt is Woodford, whose Patient Capital Trust (WPCT) he has held for at least three years. Shares in the early-stage investor in healthcare and technology companies have been hammered since the suspension of Woodford Equity Income Fund on 3 June, due to the trust’s large overlap with the fund whose forced sales are depressing its asset value.
Brexit Donor Hintze Set to Cash In on U.K. Distress (Bloomberg)
Michael Hintze donated 100,000 pounds ($121,000) to the Brexit campaign in 2016. Three years later, Britain is preparing for recession — or worse — while the pound and U.K. stocks sink. Hintze, the founder of $18 billion hedge fund CQS Management, is making preparations of his own to profit from the havoc Brexit is wreaking while negotiations are mired.
Coatue to Devote $700M to VC Deals (Pitch Book)
Hedge fund Coatue has launched a $700 million venture fund that will focus on early-stage investments, according to The Information. The New York-based firm submitted a filing for the vehicle with the SEC in November. Coatue already backs a number of high-profile unicorns, including DoorDash, Instacart and Lime.
Hedge Fund Manager Bill Perkins Leads Triton Million After Day One, Hendon Mob Leader Justin Bonomo Lurking (CardsChat.com)
Bill Perkins will return for Day Two of the historic Triton Million on Friday at 1 pm local time in London with a chip lead. The hedge fund manager has his eyes set on securing tournament poker’s biggest prize ever – £19 million. Tom Dwan and Rick Salomon were among the 18 players who busted from this £1.05 million charity poker tournament. Perkins and 35 other recreational players and pros will come back for a second of three sessions on Friday. You can catch all the action live on stream at Triton-Series.com. CardsChat’s Jeff Gross is among those who will be providing the commentary.
Soros Gifts $5.1 million Check to Democrats as He Enters 2020 Funding Game (RT.com)
Billionaire financier George Soros has created a super PAC and written a $5.1 million check for Democrats ahead of next year’s election. However, the liberal mega-donor has not revealed which candidate will get his blessing. Soros spent more than $20 million during the 2016 election, donating more than $9 million to Political Action Committees (PACs) supporting Hillary Clinton, and the rest on committees working to install Democrats in Congress and to boost minority turnout at the polls. According to records filed with the Federal Election Commission on Wednesday, the 88-year-old billionaire kicked his 2020 efforts off with a deposit of $5.1 million into his own Democracy PAC, more than doubling the $2.1 million he had donated at this point in the 2016 cycle.
Humans are Beating Machines, and Pershing Square and Greenlight are Crushing It. Here’s How Hedge Funds Performed in the First Half (Business Insider)
The market-beating human stock-picker is far from dead. Quant funds now dominate hedge fund flows and assets, but the biggest winners midway through 2019 are funds run by old-school investors who take large, concentrated bets. Systematic strategies haven’t exactly flopped, and still attracted significant assets. But stock-pickers like Bill Ackman, David Einhorn, and Gabriel Plotkin turned in a blistering first half, proving the era of the star investor is not completely over.
Och-Ziff’s Flagship Fund Falls Below $10 Billion on Outflows (Bloomberg)
Och-Ziff Capital Management Group Inc. posted another quarter of outflows from its multi-strategy hedge fund, a signal that efforts to pull in capital have yet to pay off. The firm’s flagship fund suffered second-quarter withdrawals of $849 million, bringing assets below $10 billion for the first time in years. A portion of those outflows were from former executives.