H2O, Founders Risk Record Fine in Fallout From Windhorst Bet (Bloomberg)
H2O Asset Management and its two founders risk a record combined fine of €93 million ($97 million) after French regulators accused the London-based fund of making unauthorized investments in securities owned by controversial German financier Lars Windhorst. H2O shouldn’t have invested in bonds linked to Windhorst’s holding company Tennor as they were illiquid and difficult to value, according to an official at France’s Autorité des Marchés Financiers. Those improper investments in turn meant that H2O was unable to adequately process requests from clients to pull billions of euros from a suite of funds, that were regulated under French law, following a negative news article.
Sterling is ‘Vulnerable’ to Further Falls, Says Rokos (Hedge Week)
Rokos Capital Management, the hedge fund firm founded by billionaire trader Chris Rokos, has warned that sterling is vulnerable to further falls in value, according to a report by the Financial Times. And in a further gloomy prediction, the firm also believes that the UK’s recession could have a “serious” effect on British society. The report cites a letter sent to investors in the $14.5 billion firm as saying that impact of Brexit, deglobalisation and the coronavirus pandemic had produced a bigger shock to UK trade than other developed countries.
The Age of Macro is Back (Hedge Nordic)
Stockholm (HedgeNordic) – In recent years, fixed-income macro managers such as Carlsson Norén have struggled to deliver attractive absolute returns in a low-volatility environment driven by central bank interventions. After several years of muted returns, Carlsson Norén Macro Fund is showing again its ability to preserve capital in an uncertain and volatile environment.
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Hedge Funds Have Been Shunning Momentum – To Their Peril (Forbes)
As the stock markets have plunged, hedge funds have done the only thing they could do to protect themselves. Overall, funds remain in a holding pattern – with their lowest exposure to equities since 2009. That’s undoubtedly good news for investors, as the top 50 most popular long positions among hedge funds have plummeted year to date. However, funds have also become anti-momentum, which has damaged their returns.
Ken Griffin’s Hedge Fund Increased Its Stake By Over 150% In These 2 Dividend-Paying Energy Stocks (Benzinga)
Kenneth Griffin, who began trading stocks in his Harvard dorm in 1987, is the founder, CEO and co-CIO of Citadel Advisors. In 2002, Griffin established Citadel Securities, now one of the leading market makers in the world. During the GameStop (GME) short squeeze fiasco, Griffin was questioned by Rep. Brad Sherman (D-California), over whether online brokers like Robinhood Markets (HOOD) get the best deals for their clients by sending customer trades through Citadel Securities.
