Kyle Bass: China Trade Pact Short of Real Reform would be ‘Dumbest Deal Trump has Ever Done’ (CNBC)
Hedge fund manager Kyle Bass, a longtime China critic, told CNBC on Monday that President Donald Trump needs to avoid striking a deal with Beijing solely for agricultural purchases. “If all we’re going to do is get them to buy some soybeans and let them continue to rape and pillage us by stealing [intellectual property] from us every year, then that will be the dumbest deal Trump’s ever done in his life,” said Bass. “I know he’s done some humdingers,” claimed the founder and chief investment officer of Hayman Capital Management.
Cliff Asness’ AQR has Placed Bets Against Adyen and Worldline, Two of Europe’s Biggest Players in the Buzzy Payments Space (Business Insider)
Payments company Adyen Global’s soaring stock price — it’s up more than 50% since it went public last June — has attracted another short-seller. AQR, which runs more than $190 billion across its hedge funds, mutual funds, and other products, recently shorted the company, according to data company Breakout Point which tracks short positions in European companies. This follows a $115 million bet against the company by Mapleline Capital in February.
Pearson Mauled by Tiger Cub Hedge Funds as Short Bets Pay Off (Market Watch)
Four ‘Tiger Cub’ hedge funds have won big from Pearson’s PSON, +0.49% stock plunge as hefty bets against the company paid off. A number of U.S. hedge funds with short positions in the educational publisher have netted millions. Pearson’s stock plunged 14% on Thursday after the educational publisher warned on profits, blaming weaker U.S. university sales. The British company said U.S. students were moving away from textbooks to digital products “more rapidly than anticipated.” Four Tiger Cub hedge funds, managed by those who used to work at the famous Tiger Management investment firm, were among the big winners, according to short-selling data company Breakout Point.
Crispin Odey: I am Not Backing No-deal Brexit as Shorting Opportunity (The Guardian)
Crispin Odey, the hedge fund manager who is a leading backer of a no-deal Brexit and Boris Johnson, has dismissed claims his support is motivated by an opportunity to make millions from short-selling UK companies and the pound as “absolute rubbish”. Odey told the Guardian he was optimistic about the prospects for the UK after Brexit, denied influencing strategy at No 10 and said his fund had an overall “neutral” position on UK stocks. The founder of Odey Asset Management said he had spoken to Boris Johnson only once since he became Conservative leader, “two days after, to say congratulations”. He added: “I am an observer. When it comes to his strategy, I am not involved.”
D.E. Shaw Pushes Plan to Break Up Emerson Electric (Bloomberg)
Hedge fund D.E. Shaw is reportedly planning to push for a breakup of automation-equipment maker Emerson Electric Co. Bloomberg Opinion columnist Brooke Sutherland has the details on “Bloomberg Daybreak: Americas.” Her opinions are her own. (Source: Bloomberg)
How Tom Steyer Went from Finance to Running Against ‘the Corporate Stranglehold’ (Yahoo Finance)
Tom Steyer made billions of dollars on his ability to understand how corporations work. From 1986 until 2012, he founded and ran Farallon Capital Management. His hedge fund managed money for “institutions, including college endowments, charitable foundations and pension plans, and for high net worth individuals.” The company made Steyer a billionaire, and continues to operate today. In a 2017 interview with Forbes, Steyer gave some insight into what drew him into the investing field in the first place-and it wasn’t politics.
Hedge Funds Resume Selling Oil as Focus Turns Back to Economy: John Kemp (Reuters)
LONDON (Reuters) – Hedge funds resumed selling petroleum as Saudi Arabia ramped up output following attacks on its oil installations and the focus shifted back to the poor health of the global economy and oil consumption. Hedge funds and other money managers sold 16 million barrels of futures and options in the six major petroleum contracts in the week to Sept. 24, after buying a total of 144 million in the previous two weeks.
US Fund Managers Seek Options to Hedge Against Brexit Risk (HedgeWeek.com)
So far in the media, Brexit has been discussed from an essentially British perspective. But the implications – especially in the case of a no-deal departure from the EU – could have an impact far beyond the borders of the UK. Marianne Scordel of Bougeville Consulting looks at some of the steps US fund managers have taken in an attempt to Brexit-proof their businesses… The referendum took place over three years ago now, and the whole process can be compared at times to a cat crying to leave the house, only to remain on the mat once the door is opened, unsure as to whether to venture out or not.