EJF’s Manny Friedman Says He Sees Opportunities in Small Banks (Bloomberg)
Manny Friedman, chief executive officer of hedge fund EJF Capital, said he sees big opportunities in small banks as the Trump administration puts in rules that favors them over their larger competitors. Friedman said he likes banks under $10 billion and has invested about $7 billion in the lenders, mostly in their debt, which he says is a $30 billion market. “There is literally a revolution taking place where they are getting the advantage of massive pendulum swing toward deregulation as the Reserve Board, Congress and the administration all put in rules in favor of small banks,” Friedman said in an interview with Bloomberg Television at the Milken Institute Global Conference in Beverly Hills, California.
Oil Hedge Fund Manager Says $300 Oil ‘Not Impossible (Bloomberg)
Pierre Andurand, one of oil’s most prominent hedge fund managers, said the current reluctance of energy companies to invest in new production meant $300 a barrel was “not impossible” within a few years. Andurand, who’s often espoused bullish views, said in a series of tweets on Sunday that concern about the impact of electric vehicles on future demand was limiting investment in projects with long lead times. “So paradoxically these peak demand fears might bring the largest supply shock ever,” he wrote. “If oil prices do not rise fast enough, $300 oil in a few years is not impossible.”
Elliott Eyes Push Into Wall Street’s Hottest Debt Trade (Bloomberg)
Hedge fund Elliott Management Corp. is looking to expand its business in Wall Street’s hottest debt market. The firm is considering packaging riskier corporate loans into bonds known as collateralized loan obligations, according to people familiar with the matter. The $35 billion hedge fund is building a team to assemble the deals and enlisted Brian McNamara, formerly at GoldenTree Asset Management, as a consultant to help with the effort, the people said. The effort is tentative and Elliott may yet elect not to proceed, said the people who asked not to be identified discussing a private matter.
Citadel Hires Hedge Fund Team in Commodities Push (CityWire)
Citadel has hired approximately 20 traders and analysts from boutique hedge fund Cumulus, including Peter Brewer, founder and chief investment officer of the Cumulus Energy fund. Launched in 2006, the London-based Cumulus Energy fund trades commodity futures with a focus on European electricity and natural gas. As a result of the deal, the Cumulus Energy fund, which is owned by City Financial Investments Company, is expected to shutter, and the team behind it will join Citadel and operate under its commodity team, which invests as part of the firm’s flagship multi-strategy fund, Wellington, a personal familiar with the matter told Citywire.
John Paulson, David Einhorn Still Fondly Remember That Time All Of Those People Were Being Thrown Out Of Their Homes, Jobs (DealBreaker)
Mr. Paulson’s fortunes reversed. His touch has gone frigid in recent years, his firm’s performance crippled by losses in drug stocks, collapsing gold companies, and even a Chinese fraud, forestry company Sino-Forest Corp…. Paulson & Co. has been letting employees go and is moving into smaller New York offices in the headquarters of Steinway & Sons, the piano maker purchased by Mr. Paulson’s firm for more than $500 million in 2013. Recently, Mr. Paulson made a historic $1.5 billion tax payment for gains from the subprime trade that had been deferred for a decade. Greenlight Capital, has suffered from bets against some of the market’s best performing stocks, including Tesla Inc. and Amazon.com Inc. The benchmark fund lost more than 10% between the end of 2014 and the end of 2017, The Wall Street Journal Reported. The S&P 500 index notched a 38% total return in that period.