Inside the Sprawling Network of Hedge Fund Spin-Offs from Israel Englander’s Millennium Management (Business Insider)
One could argue that Millennium Management‘s greatest advantage over other hedge funds is its ability to keep talented people in-house. The massive hedge fund – which manages some $46 billion in assets across hundreds of teams – has a unique structure that lets portfolio managers operate in independent silos. The structure, which is grants PMs even more autonomy than fellow multi-strategy funds though with tight risk and loss parameters, helps billionaire founder Israel Englander convince staffers who might leave a more traditional fund to stay in-house – and recruit top talent into his firm.
Citadel Securities Sues SEC Over Approval of New Stock-Order Type (Reuters)
(Reuters) – Citadel Securities, which provides trading services to asset managers, banks, broker-dealers and hedge funds, has sued the Securities and Exchange Commission over its decision to approve a new mechanism for trading stocks at upstart exchange operator IEX Group Inc. “The SEC failed to properly consider the costs and burdens imposed by this proposal that will undermine the reliability of our markets and harm tens of millions of retail investors,” a Citadel Securities spokeswoman said in an email on Friday.
Australia’s CIMIC to Sell 50% of Mining Services Business Thiess to Elliott (Reuters)
(Reuters) – CIMIC Group CIM.AX said on Monday it will sell half of its mining services business to activist hedge fund Elliott Management, valuing the unit Thiess at A$4.3 billion ($3.04 billion). CIMIC, which will continue to hold the remaining 50% of Thiess, expects a pre-tax gain on the stake sale of around A$2.2 billion and a post-tax gain of around A$1.4 billion.
Man GLG Japan CoreAlpha – Stephen Harker and Neil Edwards to Retire (Hargreaves Lansdown)
Stephen Harker, lead manager of the Man GLG Japan CoreAlpha Fund is to step down at the end of March 2021 after four decades in the industry. Senior portfolio manager Neil Edwards will retire at the same time. Jeff Atherton, who currently serves as senior portfolio manager, will take over as lead manager and continue to be supported by co-manager Adrian Edwards and assistant managers Stephen Harget and Emily Badger. Harker will remain an advisor to the fund for one year, after which he will retire.
Hedge Fund Speculators Reverse Big Nasdaq Short (NewsMax.com)
Hedge funds have pulled back from one of the biggest short positions in U.S. tech stocks in over a decade, in a near-record buying spree of Nasdaq futures last week. Net speculative positions in Nasdaq 100 mini contracts surged by the most in more than 13 years in the week through Oct. 13, according to the latest Commodity Futures Trading Commission data.
Hedge Funds Slow to Adopt AI: Survey (Opalesque.com)
Hedge funds are still slow to adopt artificial intelligence and machine learning to make investments or trades, with 87% of respondents stating that their hedge funds do not utilize these tools, said a survey. When asked to name the top challenge for their business, hedge fund executives noted cybersecurity concerns (31%) followed by incorporating new technology (25%), revealed a new survey of more than 250 alternative investment professionals conducted by EisnerAmper. Notably, fluctuations in international trade policy were only cited by 13% of respondents as their primary concern, down steeply from 40% last year when it was the leading issue.
CARN Keeps Growing (Hedge Nordic)
Stockholm (HedgeNordic) – The coronavirus pandemic might have changed the fate of some hedge funds for the worst, as the March market meltdown caused large losses and sent assets under management dwindling. Some hedge funds have not only survived the coronavirus pandemic, but they are also thriving by attracting fresh capital and actively hiring in the post-COVID world. After hiring Melanie Brooks from Norges Bank Investment Management (NBIM) a few months ago, Norwegian hedge fund manager CARN Capital has just announced the appointment of Erik Haukaa as Head of Investor Relations.