New York Hedge Fund Kellner Capital Marks 40th Anniversary (Hedge Week)
Kellner Capital, a hedge fund with a strong focus on merger arbitrage opportunities, is marking its 40th anniversary. Throughout its history, the firm has analysed roughly 10,000 deals, has achieved a deal completion rate of over 95 per cent, and generated 35 years of positive returns for investors. The firm was founded by George Kellner in 1981, making it one of the oldest continually running hedge funds in existence. During its tenure, the firm has remained steadfast in its commitment to merger arbitrage as a core strategy, protecting investors from market risk and providing consistent returns. Kellner Capital has also continually expanded throughout the years having launched separately managed accounts as well as a mutual fund in 2012.
Mike Novogratz’s Galaxy Digital Buys BitGo for $1.2bn in the Biggest Crypto Deal to Date (Opalesque)
Mike Novogratz‘s Galaxy Digital, a Bitcoin-focused firm, is set to acquire digital asset custody provider BitGo BitGo for $1.2 billion in cash and stock, the largest-ever acquisition of a company offering bitcoin services. The acquisition of the U.S.-regulated crypto custody specialist, the first $1 billion deal in the cryptocurrency industry, comes as the total value of the cryptocurrency market soars to $2 trillion. The merger will position Galaxy as a crypto-focused financial services firm offering storage, trading, asset management, tax services, and more for institutions. It comes as the crypto sector’s entire market value soars to $2 trillion.
US Regulators Mull New Rules that could Threaten Robinhood, Citadel (SCMP.com)
Robinhood Markets and Citadel Securities had starring roles in the GameStop trading frenzy that rocked financial markets this year. Now, they have among the most to lose as US regulators threaten a clean up. In his most revealing comments so far about how Washington might respond to the meme-stock mania, Securities and Exchange Commission (SEC) Chairman Gary Gensler shined a spotlight on online brokerages and market makers that dominate the business of executing retail investors’ equity orders.
In a Hedge Fund’s Bid for Tribune’s Newspapers, a Hidden Risk Lurks in the Fine Print (The Washington Post)
In its bid to acquire Tribune Publishing, the hedge fund Alden Global Capital vowed to provide $375 million in cash to the owner of the Chicago Tribune, the Baltimore Sun and other titles — a theoretically welcome influx to an investment-starved newspaper chain. But industry and financial experts have looked at the fine print and see something starkly different: Alden, they say, has already signaled that it plans to saddle Tribune with debt that could further hollow out the company, and it may not have $375 million available to begin with.
U.S. SEC Chair Says Reviewing Short-Selling, Swap Rules After GameStop, Archegos Sagas (Reuters)
The U.S. securities regulator is considering measures to require big investors to disclose more about short positions, or bets that stocks will fall, use of derivatives to bet on other stock moves and to protect small investors from trading apps that use features common to video games in order to boost risky trading activity. The review of rules by the Securities and Exchange Commission (SEC) was prompted by January’s GameStop (GME.N) saga and the meltdown of Archegos Capital, its new chair plans to tell lawmakers.
Sculptor Hedge Fund Rebounds With First Inflows Since 2014 (Bloomberg)
Sculptor Capital Management’s flagship hedge fund is finally beginning to turn around. The firm’s multistrategy vehicle scored its first quarter of net inflows since 2014, marking the end of years of client withdrawals that totaled about $30 billion. The fund and its associated portfolios attracted a net $78 million of fresh cash, bringing total assets in those products to $10.9 billion as of March 31, the firm said in a statement Wednesday.