Reddit Traders Are Upending the World of Credit Investing, Too (Bloomberg)
It was the type of master stroke that could make a Wall Street career. Jason Mudrick’s financing of AMC Entertainment Holdings Inc. at the height of the pandemic netted his hedge fund hundreds of millions of dollars in just a few months. Then, in the blink of an eye, it was gone. Options contracts meant to hedge the bullish wager went haywire as retail traders flocked to AMC’s stock, pushing shares to once unimaginable heights and costing Mudrick Capital Management all of its gains — and more.
Digital Bank Revolut Valued at $33 Billion in Funding Round Led by SoftBank and Tiger Global (CNBC)
LONDON — British fintech firm Revolut said Thursday it has raised $800 million in a new funding round led by SoftBank and Tiger Global. Revolut, which offers banking and trading services through an app, is now valued at $33 billion, a sixfold increase on the $5.5 billion the company was worth last year.
Hedge Funder Kyle Bass’s $34 Million Real-Estate Short Could Cost Him $1 Billion (Business Insider)
A Texas investor who accused a real-estate financing group of operating as a Ponzi scheme now faces a $1 billion lawsuit that is getting closer to trial. Kyle Bass, the principal of Hayman Capital Management, netted $34 million starting in 2015 by shorting shares of United Development Funding IV, a publicly traded real estate investment trust. Bass called UDF a “Ponzi scheme,” and urged the FBI and the Securities and Exchange Commission to investigate the trust.
ESG: Effective and Appropriate Implementation the Key to Success (Preqin)
ESG factors are becoming critical to investment decisions all over the world. With its history of innovation and creativity, private capital is perfectly placed to ensure ESG is not just a box-ticking exercise. ESG has emerged as fundamental underwriting criteria for investors in both public and private markets. The challenge for sponsors and investors alike will be ensuring that performance against ESG objectives aligns with substantive impact, rather than regulatory recordkeeping. ESG has been making headlines for several years and has been widely adopted among European GPs and LPs.
SS&C GlobeOp Hedge Fund Performance Index and Capital Movement Index (KPVI.com)
WINDSOR, Conn., July 14, 2021 /PRNewswire/ — SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that the gross return of the SS&C GlobeOp Hedge Fund Performance Index for June 2021 measured 0.52%. Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index declined 0.39% in July. “SS&C GlobeOp’s Capital Movement Index of -0.39% reflects net outflows consistent with seasonal patterns. However, it should be noted the -0.39% reported for July 2021 compares very favorably to the -1.20% reported a year ago and is also the smallest net outflow for any month of July since 2011,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. “July 2021 capital movements continue the strong trend in asset retention hedge fund managers have experienced since the COVID-19 outbreak began impacting markets.”