Hedge Fund and Insider Trading News: Howard Marks, Michael Platt, Aristides Capital, Advent Capital Management, Zions Bancorporation (ZION), TransDigm Group Incorporated (TDG), and More

Add Howard Marks to the List of Notable Investors Who Believe the Market Comeback has Gone Too Far (CNBC)
Billionaire investor Howard Marks joined a growing chorus of notable investors in warning that the market rebound has gone too far given the uphill battle of developing a cure for Covid-19 and its economic impact in the meanwhile. Specifically, Marks believes that markets will eventually face more turbulence once the Federal Reserve’s unprecedented, but nonetheless temporary support mechanisms fade, according to a Bloomberg News report.

Hedge Fund Manager With 10 Straight Years Of Positive Returns Says Stay Away From These Sectors (Forbes)
Christopher Brown of Aristides Capital joined the Contrarian Investor Podcast recently to discuss his investment strategy, which has produced positive returns every calendar year since 2008. In Brown’s view, healthcare and information technology stocks should not be treated as defensive investments that will protect portfolios in times of stress – especially after their recent run-up. There are reasons many companies in this sector are overvalued and could see their shares drop as the economy begins to see further difficulties from coronavirus.

Hedge Fund Traders Openly Rated Women Co-Workers, Lawsuit Claims (Bloomberg)
New York hedge fund Advent Capital Management LLC subjected a former junior investment associate to “relentless, egregious discrimination” and then fired her for complaining about it to the firm’s top executives, she alleged in a lawsuit. Male traders and portfolio managers at the firm ranked women on a 1-10 scale, called them demeaning names and classified them according to whether men would marry, kill or have sex with them, Courtney Robb said in the complaint, filed Monday in federal court in Manhattan.

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UK’s Richest Hedge Fund Manager Sees Fortune Swell by £1bn (Citywire.co.uk)
The UK’s richest hedge fund manager saw his wealth rise by around £1bn last year, according to the annual Sunday Times Rich list. Michael Platt climbed 11 places to 24th as his fortune climbed £1.1bn to £4.8bn on the strong performance of his Bluecrest Capital hedge fund, which returned 50% in 2019. The fund was closed clients four years ago but remains open as personal investment vehicle. It is understood that most of his return last year came from long positions in fixed income. Platt is one of the few people at the top end of the list to see their wealth grow in the pandemic crisis.

Check Out Stanley Druckenmiller’s Pandemic Portfolio – Studded with ‘Stay-at-Home’ Stocks (CNBC)
Hedge fund manager Stanley Druckenmiller piled into stocks that benefit from the coronavirus shutdown in the first quarter of the year, creating what appears to be the ultimate pandemic portfolio.

Nigeria Allowed Access to Hedge Fund Papers in $9.8 Billion Suit (Bloomberg)
A U.S. court granted Nigeria permission to request documents from VR Capital Group Ltd., the part owner of a company that received a $9.8 billion arbitration award the government is trying to overturn. U.S. District Judge Paul Engelmayer ordered in New York on May 14 that Nigeria can subpoena information from London-based hedge fund VR Capital, four subsidiaries and three of its directors. Nigeria’s anti-graft agency plans to use the data in its probe of British Virgin Islands-registered Process & Industrial Developments Ltd. and allegedly corrupt government officials.

Hedge Fund Performance Update: April 2020 (Preqin.com)
Following substantial losses in March, hedge funds made strong gains in April as global equity markets rebounded. The Preqin All-Strategies Hedge Fund benchmark returned +6.42%, compared with -9.20% the previous month. CTAs had another month of gains (+0.65%) and are the only fund type with a positive 2020 YTD return (+2.06%). This factsheet presents the hedge fund performance benchmarks for April 2020. Plus, the year to date and 12-month return figures for all top-level strategies, structures, denominations, and size classifications.

Hedge Fund Kings Flock to Gold as Inflation Set to Roar (Newsmax.com)
Forget plunging oil prices and a collapse in consumer spending. Some of the world’s most-prominent investors are raising alarm bells over the looming threat of inflation, and turning to gold for protection. Money printing by central banks and vast state stimulus packages are rekindling interest in one of the oldest stores of wealth. It’s a revival of a trade that became popular in the wake of the 2008 crisis, as money managers piled into gold for similar reasons, but were ultimately disappointed as inflation was kept in check. Yet the unprecedented scale of the government response to the coronavirus crisis is feeding the argument that this time will be different. Hedge fund luminaries including Paul Singer, David Einhorn, and Crispin Odey are among those bullish on gold, according to recent letters to investors. So are large asset managers like Blackrock Inc. and Newton Investment Management.