How an Asset Manager and a Bank Revolutionized Impact Investing With Sustainability-Linked Credit Risk Transfer (Forbes)
Any toddler can tell you that sharing is caring, but it took a New York hedge fund and a French Bank to combine credit risk transfer transactions and impact investing in a revolutionary way. Mariner Investment Group, a $10bn hedge fund focused on fixed income relative value and credit strategies last month completed a $3.4bn impact investing synthetic credit risk transfer transaction with French bank Societe Generale (SocGen) related to SocGen’s diversified lending portfolio. This was the first credit risk transfer transaction with a private investor to include a pricing incentive based on the redeployment of capital.
Two Sigma’s Sightway Raises $1.2 Billion for First Private-Equity Fund (The Wall Street Journal)
Sightway Capital, the private-equity arm of quantitative hedge-fund Two Sigma Investments, has raised $1.2 billion from limited partners for its strategy targeting the data-intensive financial-services and real-assets sectors. Institutional investors of various types backed Sightway Capital I LP, according to the New York-based private-equity firm. The Massachusetts Pension Reserves Investment Trust, for one, earlier this year committed $500 million to the fund, according to public pension documents.
Mike Novogratz Thinks He Knows How to Get Institutions Into Bitcoin (Institutional Investor)
Galaxy Digital Capital Management has launched two funds that offer institutions and high-net-worth investors passive exposure to Bitcoin – an alternative to more expensive hedge funds and less messy than buying actual cryptocurrency. With the two funds, Mike Novogratz’s firm is betting that investors will pay a flat 1 percent management fee to get simple exposure to Bitcoin through a fund that also offers traditional services such as third-party custody, standard tax documentation, pricing from Bloomberg, and client service.
Man Gets Three-And-A-Half Years For Screwing The Mooch (Deal Breaker)
Remember when Anthony Scaramucci made his triumphant return to the fund of hedge funds business by admitting he’d been conned by a bunch of frauds? Well, federal judges don’t look too kindly on those who rip off presidential aides, even comically short-lived and inept ones, no matter how remorseful they sound after the jury says “guilty.” A federal judge handed down the 40-month sentence against Jeremy Shor, 48, who was convicted by a jury in July of fraudulently “mismarking” the value of fund holdings. Prosecutors said Premium Point co-founder Anilesh “Neil” Ahuja, who was also found guilty in July and faces sentencing next week, and portfolio manager Amin Majidi set inflated monthly targets for returns then ordered Shor and other traders to manipulate the valuations accordingly…
Hedge Funds Are Loading Up Here (MoneyMorning.com.au)
You’ve probably heard a lot over the past few weeks from big-name hedge fund manager, Ray Dalio. In short, he’s pretty worried about the whole economy. Reflecting on the stock market, he said at a conference recently: ‘They’re selling dreams. They’re not selling earnings, and they’re not even selling a path to earnings.’ Sounds pretty bad… And yet it’s worth remembering Dalio isn’t the be all and end all of investing. He’s just one person with an opinion, after all. That’s the beauty of the markets really. Your opinion, my opinion…it’s just as valid as Dalio’s. At the end of the day, only you can judge yourself and your investments. The scorecard you use should reflect the reality of the returns you made, for the risk you took.
USA Technologies Sued by Its Largest Shareholder Amid Proxy Fight (Biz Journals)
USA Technologies has been sued by its largest investor, which claims it has been deprived of the right to call a special shareholders meeting before the company’s next annual meeting. Filed in the Court of Common Pleas of Chester County, New York-based hedge fund Hudson Executive Capital wants to invalidate a new bylaw amendment that requires a shareholder to own 20% of the company’s preferred stock to call a special shareholder meeting. Hudson, which is currently in a proxy war with the company, owns 16% of Malvern-based USAT’s stock.
Hedge Funds Up 0.31 per cent in October, Says Eurekahedge (Hedge Week)
The Eurekahedge Hedge Fund Index was up 0.31 per cent in October, bringing its year-to-date return to 6.27 per cent. Roughly 30.1 per cent of the hedge fund managers comprising the index have recorded double-digit gains over the first 10 months of the year. The global hedge fund industry AUM has declined by USD19.5 billion as of October 2019 year-to-date. Net outflows figure for Q3 stood at USD40.6 billion, which compares to the USD46.4 billion and USD40.0 billion of net outflows in Q1 and Q2 2019 respectively.
Hedge Funds Bail on T-Mobile US and Uber Technologies Stock (Barron’s)
Hedge funds leaned into technology and industrial stocks in the third quarter, while moving away from consumer staples and real estate. Within 45 days of the end of each quarter, hedge funds must report their portfolio holdings to the Securities and Exchange Commission on a regulatory form known as a 13F. In a study published Monday evening, a team of Goldman Sachs analysts assessed the holdings of 833 hedge funds that managed $2.1 trillion as the fourth quarter began.