This Hedge Fund Manager Called Inflation Early. He Now Says Consumer Prices will Finish 2022 at a Level that `Screams Failure by the Fed’ (MarketWatch)
Far from the bustle of Wall Street, inside his downtown Minneapolis office, Tim Magnusson got his first aching gut feeling about U.S. inflation in May of last year. That’s when U.S. government data showed a 10% increase in used car and truck prices during the prior month, April of 2021. Magnusson, then a senior portfolio manager at hedge fund firm Garda Capital Partners, sensed something was amiss from the report. Magnusson had spent more than a decade of his career as an inflation trader and his father was a truck driver. He had never seen anything like it.
Galaxy’s Mike Novogratz Says Two-Thirds of Crypto Hedge Funds Will Fail (Bloomberg)
Mike Novogratz, the founder and chief executive of Galaxy Digital Holdings Ltd., said that two-thirds of the hedge funds that invest in cryptocurrencies will fail as a consequence of the current market downtown. “Volume will go down, hedge funds will have to restructure,” Novogratz said at the Piper Sandler Global Exchanges & Brokerage Conference in New York. “There are literally 1,900 crypto hedge funds. My guess is two thirds will go out of business.”
Hasbro Defeats Board Challenge from Activist Investor Alta Fox (Reuters)
June 8 (Reuters) – Hasbro Inc (HAS.O) defeated a board challenge from activist hedge fund Alta Fox with shareholders re-electing all of the company’s directors, the toymaker said on Wednesday, citing a preliminary tally of voting results. Alta Fox, which nominated one director to the company’s 13-member board, had pushed Hasbro to spin off its Wizards of the Coast and Digital Gaming unit and criticized how the company allocated its capital.
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Billionaire Ray Dalio Credits His Market Savvy to a Conversation He had as a 12-Year-Old Golf Caddie (CNBC)
Many pre-teens today find life lessons and knowledge on TikTok. Twelve-year-old Ray Dalio found them on the golf course. On a recent episode of the “Armchair Expert” podcast, hosted by actor Dax Shepard, Dalio detailed how connections he made as a young golf caddy in the early 1960s taught him how to invest. On the course at a golf club in Long Island, New York, Dalio worked for George Leib and Donald Stott, two men with connections to Wall Street. He said he listened to them talk shop, took $300 he made from caddying and invested in the cheapest company he could find: Northeast Airlines.
BMS to Redeem Entire Arete Allocation (Hedge Nordic)
Stockholm (HedgeNordic) – In the continuous pursuit of improving its portfolio characteristics and risk-reward profile, Brummer Multi-Strategy will redeem in full its investment in the Arete Macro Fund. Arete, which employs a discretionary macro strategy focusing on China and the rest of Asia, has been part of Brummer Multi-Strategy’s multi-strategy, multi-manager portfolio since August 2016. As previously announced, Brummer Multi-Strategy has added two new strategies to its portfolio and plans to add an additional one during the fourth quarter of this year.
Coatue’s Shopping List: The Hedge Fund Shares 13 Tech Stocks It Thinks are Unfairly Beaten-Down — and the Right Time to Buy Them (Business Insider)
Tech-focused hedge fund Coatue Management is sitting on a giant pile of cash, and it’s devising ways to deploy it as it waits for signals that the market is stabilizing. As Insider previously reported, founder Philippe Laffont is fond of slashing exposure during times of market stress, and the recent stock slump has been no different: The fund told investors in mid-May it had liquidated most of its holdings and was siting on more than 80% cash.
Hedge Fund D1 Borrowed Billions for a Hot Bet That Now Faces Reckoning (Bloomberg)
Hedge funds were tallying gains on their hottest bet in years when Dan Sundheim reached an unusual deal with JPMorgan Chase & Co. to go even further. With the bank’s help in August 2020, Sundheim’s D1 Capital Partners used its stakes in private companies as collateral for borrowing $2 billion that the firm could put toward yet more of those stakes, among other things. Last year that focus on private companies looked brilliant, as D1 updated its valuations and posted a whopping 70% gain in that part of its portfolio.
Ex-Citadel Analyst Gets Over 4 Years in Prison for Hedge Fund Covid Scam (The Business Times)
A FORMER analyst at Citadel LLC was ordered to spend more than 4 years in federal prison for scamming US$4.6 million in Covid relief loans for his startup hedge fund, most of which he lost in the market. Gregory Blotnick, 35, was sentenced on Tuesday (Jun 7) to 51 months behind bars by a federal judge in Newark, New Jersey, and ordered to pay US$4.6 million in restitution. He pleaded guilty in October to submitting 21 fraudulent loan applications to 13 lenders under the Paycheck Protection Program of the March 2020 Covid stimulus bill.
London Metal Exchange Hit with Complaint from $2.6tn Hedge Fund Group Over Nickel Fiasco (Financial News)
A formal complaint has been made by the Managed Fund Association against the London Metal Exchange over its cancellation of nearly $4bn in nickel trades on 8 March. In an 8 June letter to the LME, the hedge fund group – representing 150 hedge funds managing nearly $2.6tn in assets – said that “the LME has undermined confidence in its ability to oversee markets by failing to perform its regulatory obligations to maintain an orderly market, manage conflicts of interest and protect investors in the nickel market”.
Tuesday 6/7 Insider Buying Report: HRT, CYH (Nasdaq.com)
At Hireright Holdings, a filing with the SEC revealed that on Friday, Director Mark F. Dzialga bought 20,767 shares of HRT, for a cost of $14.96 each, for a total investment of $310,674. Hireright Holdings is trading off about 1.1% on the day Tuesday. And at Community Health Systems, there was insider buying on Thursday, by Director James S. Ely III who purchased 50,000 shares for a cost of $5.08 each, for a trade totaling $253,810. This buy marks the first one filed by Ely III in the past year. Community Health Systems is trading off about 1.8% on the day Tuesday. So far Ely III is in the green, up about 4.3% on their buy based on today’s trading high of $5.29.
Executives Sell More Than $61M Of 4 Stocks (Benzinga)
Arista Networks: The Trade: Arista Networks, Inc. (ANET) Director, Chief Development Officer Andreas Bechtolsheim sold a total of 200,000 shares at an average price of $103.68. The insider received around $20.74 million from selling those shares. Flywire: The Trade: Flywire Corporation (FLYW) 10% owner Ajay Agarwal sold a total of 1,240,490 shares at an average price of $19.60. The insider received around $24.31 million as a result of the transaction.
