Ken Griffin’s Citadel Securities Fights to Block Rival From Using Leaked Algorithm (Bloomberg)
Citadel Securities told a London court that officials at British hedge fund GSA Capital LLP can’t unsee information taken from a secret algorithm that is at the center of a lawsuit. The U.S. firm, founded by Ken Griffin, is seeking around $40 million over claims that GSA obtained a secret trading strategy from a senior trader at Citadel Securities while using texts and WhatsApp messages to hide all traces of the plan. In addition to the damages, Citadel Securities wants to block GSA from using the trading model.
$42 Billion Tiger Global is Trying to Diversify Its Staff — and Its Hired a McKinsey Recruiter to Help It Look Beyond ‘a Limited Number of New York Investment Firms’ for Talent (Business Insider)
Tiger Global, the $42 billion hedge fund run by billionaire Chase Coleman, is hoping to expand beyond its normal hunting grounds for talent, the firm told investors in a letter dated Oct. 30. The manager, which is up 34.7% in its main public fund through the first three quarters, said it has typically limited its talent search to a limited number of firms based in New York. To help diversify its team, the firm hired Lisa Rikkers, a longtime hiring manager from McKinsey, in August to be its first director of talent.
Odey Asset Management Names Leader for New Emerging Markets Team (Pensions&Investments)
Robert Marshall-Lee will join Odey Asset Management to lead a new global emerging markets team, effective in March. The role is new. The team will manage long-only equity strategies, a news release said. Mr. Marshall-Lee’s recruitment marks the first external appointment in the hedge fund firm’s development of a new institutional and international product offering, the release said.
Bridgewater’s Dalio Supports Ant IPO Suspension, Bullish on China (Reuters)
SHANGHAI (Reuters) – Ray Dalio, founder of Bridgewater Associates, expressed support on Wednesday for China’s abrupt decision to suspend Ant Group’s record $37 billion listing, citing the need to curb risks from financial innovation. At the same time, Dalio, who calls himself a “chronic bull on China”, also told an online conference that not investing in the rising Asian power is “very risky”.
Bill Ackman Is Right to Hedge on Corporate Credit (Bloomberg)
Billionaire investor Bill Ackman, founder of hedge fund Pershing Square Holdings Ltd., is reloading on his bearish bet on corporate credit, according to the Financial Times. That makes sense. Credit spreads – the premium charged for riskier company bonds above government debt – have largely returned to pre-Covid levels, even before a working vaccine has passed approval. In some cases they’re at record lows amid the euphoria on the Pfizer vaccine. As the recovery becomes increasingly priced in, why not hedge for potential bumps in the road?
Crisis Pressures Stakes Held by Largest LPs (Green Street)
The amount of capital deployed to hedge funds by the biggest investors declined sharply this year, as the coronavirus pandemic and resulting volatility hurt performance and weighed on new subscriptions. The 25 sovereign wealth funds, pensions and endowments that make up Hedge Fund Alert’s eighth annual ranking of the world’s most aggressive hedge fund investors have a combined $267 billion committed to the sector. That marks a 16% drop from $318 billion a year earlier. The decrease coincides with an overall decline in hedge fund assets amid unprecedented uncertainty about the economy and nervousness about the presidential election. Year to date, the amount of money invested in hedge funds globally fell 3% to about $3.2 trillion, according to eVestment.