BOE Risks Losing Control Over Pound, Hedge Fund Giant Balyasny Says (Bloomberg)
The Bank of England’s dramatic intervention to control bond yields earlier this week threatens the central bank’s fight to contain inflation and prevent a decline in pound, according to hedge fund giant Balyasny Asset Management. While the BOE’s move to avoid a potential crash in the gilt market by pledging unlimited purchases of long-dated bonds on Wednesday has stabilized the markets, the $16.6 billion money manager said the move is a demonstration of the government’s “policy misstep”.
Kwasi Kwarteng’s Ex-Boss Bet Big on Falling Pound Weeks After Lunch with Him (The Times)
Kwasi Kwarteng had a private lunch during the Tory leadership contest with a hedge fund boss who once employed him. Crispin Odey, a hedge fund manager who has profited from the fall in the value of the pound and government debt, met Kwarteng at his home in London on July 17, when there were still six candidates in the running for the Tory leadership. Truss, the candidate who Kwarteng backed, made it to the final two on July 20.
Oaktree Capital’s Danielle Poli is Navigating the Credit Markets During One of Its Trickiest Periods. But the Portfolio Manager Reckons Today’s Volatility can Produce ‘Double-Digit’ Returns in Fixed Income. (Business Insider)
Danielle Poli, a co-portfolio manager of Oaktree’s diversified-income fund, has been on a bit of a whirlwind tour of late. When she sat down for an interview with Insider, Poli had just arrived from California, her home state. She had just wrapped up other media appearances, and was mere hours away from boarding a flight to Australia, where she was scheduled to talk shop with institutional clients.
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US Recession is a Matter of When Not If, Says Citadel Boss (Hedge Week)
Billionaire hedge fund investor Ken Griffin believes that a US recession is inevitable and could happen as soon as next year, according to a report by the Financial Times. Speaking at CNBC’s Delivering Alpha conference in New York yesterday, the Citadel boss said that the only uncertainty is how hard the recession will be. And he believes the US Federal Reserve needs to do more to tackle inflation despite having raised its its benchmark rate by 0.75 percentage points for the third time in a row.
New Activist Hedge Fund Thinks Barnes Group Could Be Worth Double in a Sale – Report (Investing.com)
Shares of Barnes Group (NYSE:B) rose 3% in early trading Friday after a new activist hedge fund, Irenic Capital Management, reportedly built a stake in the company and will push for board changes and a potential sale. Irenic told Barnes management that the company could fetch up to $60 per share in a sale or more than double the current price, Bloomberg News reported citing people familiar with the matter.
