Hedge Fund Millennium Will Charge Fees Even When It Loses Money (Bloomberg)
Izzy Englander’s Millennium Management has changed its terms to ensure that clients always pay a minimum fee, even if the hedge fund loses money. They will now pay annual fees of about 1% of assets or 20% of investment gains — whichever is greater, according to a client letter seen by Bloomberg. It’s part of an effort to “reflect current industry-standard approaches” adopted by other multi-strategy peers, Millennium said in the Feb. 21 letter.
Wall Street’s Most Successful Hedge Fund Just Politely Told Fed Chair Jay Powell to Shut Up (Fortune)
If there was one piece of advice the boss of hedge fund Citadel LLC would give to the Federal Reserve, it would be to stop talking so much. Every time Fed chair Jay Powell opens his mouth to discuss all the progress the central bank has achieved cooling off last year’s red-hot inflation, he may actually just be making his own job harder by confusing investors with different messages. Citadel founder Ken Griffin, the most successful hedge fund manager on Wall Street last year, urged Powell to stick to just one key talking point so as to anchor inflation expectations best and therefore minimize the collateral damage he is visiting upon the economy.
NJOY Investment Nets $1.3 Billion Bonanza for Hedge Fund (The Wall Street Journal)
New York hedge fund Mudrick Capital Management has racked up a big win on its roughly six-year investment in e-cigarette company NJOY Holdings. Marlboro maker Altria Group on Monday agreed to buy NJOY, one of the few vaping companies whose products have clearance from federal regulators, for at least $2.75 billion. Assuming the deal closes, the deal makes Mudrick’s NJOY stake, for which it paid roughly $75 million over the years, worth about $1.33 billion, said a person familiar with the firm, resulting in an estimated profit of $1.26 billion. The investor managed about $3.4 billion at year-end.
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US Digital Asset Fund, Venture Capital Firm to Raise $100 Million for Two New Blockchain Funds (Reuters)
Alpha Sigma Capital, a U.S.-based digital asset fund, and Transform Ventures, a venture capital firm, will raise $100 million for two new funds focused on the blockchain and so-called decentralized Web 3.0 ventures, Alpha Sigma founder and Chief Executive Officer Enzo Villani said on Wednesday. Transform Ventures, founded by crypto investor Michael Terpin, also merged some of its assets with Alpha Sigma’s parent to form a new holding company called Alpha Transform Holdings. The latter will oversee the two new funds.
Hedge Funds Down 0.5% in February (Hedge Week)
Global hedge funds saw a 0.5% decline in February according to the performance of the HFRI Fund Weighted Composite Index, on the back of weak equities performance, ongoing generational inflation, higher interest rates and the possibility of a recession in 2023. Equity hedge funds, which invest long and short across specialised sub-strategies, declined in over the month though outperformed equity market declines for February, with performance led by Market Neutral and Technology sub-strategies. The investable HFRI 500 Equity Hedge Index declined -1.5% (estimated) in February, while the HFRI Equity Hedge (Total) Index fell -1.3%. EH sub-strategy declines were led by the HFRI EH: Energy/Basic Materials Index, which fell -2.7%, while the HFRI 500 EH: Fundamental Growth Index declined -2.6%.
