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.
Bill Ackman Says His Hedge Fund has Large Short Position Against Hong Kong Dollar (Seeking Alpha)
Billionaire investor Bill Ackman said that his hedge fund, Pershing Square, has taken a “large notional short position” against the Hong Kong dollar, while contending the currency’s peg to the U.S. dollar (DXY) will snap eventually. “We have a large notional short position against the Hong Kong dollar through the ownership of put options,” Ackman wrote in a recent Twitter post. “The peg no longer makes sense for Hong Kong and it is only a matter of time before it breaks.”
Chessica Market Neutral Hedge Fund Ready for Upward Stock Correction (Opalesque)
“October offered equity traders a moment’s respite from the otherwise relentless flogging it has had on offer throughout 2022,” said Ben Crawford from hedge fund data provider BarclayHedge. “Wasting no time, risk appetites rebounded and the valuations of equities and other risky assets broadly recovered some of their lost ground.” The Barclay Hedge Fund Index was up 2.3% that month and down 9.3% YTD. The Barclay Equity Market Neutral index fared better, returning 0.55% and 2.2% YTD. A market-neutral strategy seeks to profit from both increasing and decreasing prices in one or more markets while attempting to completely avoid some specific form of market risk.
$10 Million Bet On Canoo? Check Out These 3 Stocks Under $3 Insiders Are Buying (Benzinga)
Canoo: The Trade: Canoo Inc. (GOEV) Director, Executive Chairman and CEO Tony Aquila acquired a total of 9,009,009 shares at an average price of $1.11. To acquire these shares, it cost around $10 million. NeuroPace: The Trade: NeuroPace, Inc. (NPCE) 10% owner Accelmed Partners II L.P. acquired a total of 390,291 shares at at an average price of $1.50. The insider spent around $585.05 thousand to buy those shares.
Insider Buying: HireRight Holdings Co. (NYSE:HRT) Director Buys 110,054 Shares of Stock (ETFDailyNews.com)
HireRight Holdings Co. (NYSE:HRT) Director Atlantic Genpar Bermu General purchased 110,054 shares of the firm’s stock in a transaction that occurred on Wednesday, November 23rd. The stock was bought at an average price of $11.07 per share, with a total value of $1,218,297.78. Following the transaction, the director now directly owns 30,794,994 shares in the company, valued at $340,900,583.58. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website.
Sebi Amends Norms; Brings Mutual Funds Under Insider Trading Rules (LiveMint)
Capital markets regulator Securities and Exchange Board of India (Sebi) has amended norms to bring buying and selling of mutual fund units under the insider trading rules. Sebi has now issued detailed guidelines .The regulations state that any person who is connected with a fund house and comes into possession of unpublished, price-sensitive information shall not be permitted to trade in MF units wherein either the net asset value (NAV) of the scheme could get impacted or the interests of unitholders may be compromised.
