A Fund Manager Crushing 98% of his Peers Over the Past Half-Decade Told Us 4 Themes He’s Betting on and 4 He’s Betting Against — and Why the Latest Market Rally Still has Room to Run (Business Insider)
Very few stock pickers on Wall Street can say they’re having a better year than usual. Mitch Rubin of RiverPark Ventures is one of those few. He made money by betting on big tech and against energy companies. And when the novel coronavirus started spreading beyond China, he made money betting against travel and entertainment companies. Add it up and Rubin’s RiverPark Long/Short Opportunity Fund has returned 26% to investors in a year when the market is roughly flat and most funds of its class are negative. That’s helped him more than double the assets invested with the fund in just three months.
Druckenmiller Owned 5 Hot Stocks, but Only Gained 3% in the Rally? Huh? (AI-CIO.com)
Here’s a puzzle for you: How could legendary investor Stanley Druckenmiller own some of the hottest stocks in creation, and yet his portfolio advanced just 3% during the market’s spring surge? After a one-month death spiral that ended March 23, as Washington prepared to pass its ginormous rescue effort, stocks took off and regained all the lost ground. The S&P 500 climbed a daunting 40% and nearly matched the previous (Feb. 19) record. Druckenmiller, whose Duquesne Family Office had $2.46 billion in assets as of March 31, held a full house of mega-growth names, according to regulatory filings. His top five holdings, ranked from the biggest positions to the smallest, were Amazon, Netflix, Workday (a cloud service provider), Facebook, and Microsoft. This quintet comprised half his fund’s assets.
Gibraltar Ranks No3 in the World for Crypto Hedge Fund Managers (Hedge Week)
A new report into the global crypto hedge fund landscape from PwC and Elwood Asset Management has shown Gibraltar as the third most popular jurisdiction for crypto hedge fund managers, behind only the US and UK. Gibraltar, which is also listed as having the fourth highest number of domiciled crypto hedge funds, puts the jurisdiction ahead of financial centres such as Singapore, Malta, The Netherlands, Hong Kong, and Switzerland and many others, despite its relative size. This news is backed up by one of the jurisdiction’s leading crypto and funds law firms, ISOLAS LLP, which continues to work with leading crypto funds, managers and exchanges who choose Gibraltar for its regulatory approach, specifically its Core Principles based DLT regulations.
One-Man Hedge Fund Surged 27% This Year, Crushing Market Returns (Bloomberg)
Lynwood Capital Management Inc.’s Lynwood Opportunities Fund has advanced about 27% this year, outperforming most peers and beating broader markets hit by pandemic related volatility by nearly tenfold last month alone. The Canadian hedge fund is run by Ben Shapiro, who was previously a portfolio manager at K2 & Associates Investment Management Inc. His fund saw returns of 21.7% in May, while the S&P/TSX Composite Index added just 2.8%, according to a letter obtained by Bloomberg. It also gained 30.5% in 2019, while TSX was up about 19%.
Hedge Fund Bow Street Close to Winning Control of Board at Mack-Cali, Sources Say (Reuters)
BOSTON (Reuters) – Bow Street LLC is close to having eight directors elected to the board of Mack-Cali Realty Corp (CLI.N), which would give the hedge fund control of the real estate investment trust’s board, sources familiar with the matter said on Tuesday. All votes have not been cast before Wednesday’s annual meeting and the results could still change. But preliminary numbers show Bow Street’s entire eight-member slate will be elected to the 11-strong board, the sources said.
Pipeline Filling With Healthcare Startups (HFAlert.com)
A slew of startup hedge fund operators are touting their abilities to make money in a healthcare-stock sector that has been whipsawed by the coronavirus crisis. Portfolio manager Watt Boone left GMT Capital in recent weeks with plans to form a yet-to-be-named firm. And D.E. Shaw alumnus Abhishek Trehan launched his Darwin Global while continuing to raise money. Also moving ahead was one-time Geode Capital portfolio manager Mitch Livstone, who started trading an undisclosed amount of money through his Black Coffee Capital last month. Working through a venture called Eagle Health Investments, meanwhile, former Ziff Capital chief investment officer Gary Stern has lined up $150 million from one investor plus backing from Dirk Ziff.
Billionaire Bond King Jeff Gundlach Said the Stock Market will Likely Fall from its ‘Lofty’ Perch Despite ‘Superman’ Jerome Powell’s Policies (Business Insider)
The stock market is likely to fall from its “lofty” perch alongside waves of corporate credit downgrades and white-collar unemployment, Jeffrey Gundlach, founder and chief executive of DoubleLine Capital, said in a webcast on Tuesday. Describing the market as overinflated, he said he thinks the market falling is a “pretty good bet.” “If you think that the stock market is going to fall from its fairly lofty perch right now – which I think is a pretty good bet,” he said, adding that such investors should bet on increased dollar strength.