Hedge Fund Titan Sees a Quantamental Future (Bloomberg)
We all suffer from cognitive biases. Paul Marshall says he’s prone to optimism bias — he’s “too easily romanced by new stories and new opportunities.” He says his financial partner, Ian Wace, succumbs to the gambler’s fallacy, expecting market dislocations to disappear rapidly as prices revert to their mean. But neither trait has prevented them from building Marshall Wace LLP into one of the world’s biggest hedge funds, overseeing more than $44 billion and making billions for themselves in the process.
$30 Billion Citadel Just Poached an AQR Exec for a New Leadership Role to Supercharge Billionaire Ken Griffin’s Bond Trading Team (Business Insider)
Billionaire Ken Griffin has poached another executive from a top rival. Griffin’s Citadel has recruited AQR‘s head of trading Isaac Chang to be the Chicago-based firm’s first-ever head of execution trading for Citadel’s fixed-income business, the firm confirmed to Business Insider. He will join the firm in September. The $30 billion hedge fund is also adding a top Two Sigma tech executive to its team to handle everything “post execution”, Business Insider reported in May.
Bill Miller’s Record-Setting Fund Beat the Market for 15 Straight Years. He Breaks Down the Trio of Forces that has Him Bullish on Stocks — and Lays Out a ‘Home Run’ Trade He’s Making Right Now. (Business Insider)
Investors who beat the market on a consistent basis are few and far between. Legends like Warren Buffett, Jim Simons, Joel Greenblatt, and Peter Lynch are among the few who took the seemingly impossible and made it a reality. Bill Miller, the founder of Miller Value Partners, is cut from the same cloth. From 1991 to 2005, Miller trounced the S&P 500 employing his value-based theorem. Today, he has a sanguine view of where things are headed.
Ex-Bridgewater CEO Disputes Objective Bridgewater Criteria That Pay Women Less (Deal Breaker)
Eileen Murray has moved on from Bridgewater Associates, to the less-Principled pastures of FINRA and HSBC. Well, almost moved on. Bridgewater Associates and former co-Chief Executive Officer Eileen Murray are still negotiating an exit package three months after she left the world’s biggest hedge fund — a fight that has dragged on because Bridgewater’s offer is both less than what has been paid to men who left the firm and below the status of her position, one of Murray’s advisers said…. Her adviser, who asked not to be named because of the sensitivity of the situation, said this was the third time since 2017 that Bridgewater offered her compensation that was lower than male colleagues at comparable levels.
Barclays Hedge-Fund Risks Made it ‘Beyond Saving,’ Abu Dhabi Sovereign Wealth Fund Exec Says (FNLondon.com)
David Forbes, who worked at a firm running the fund and was close to the bank’s 2008 bailout, told the court that he was concerned. The Abu Dhabi sovereign wealth fund was advised against investing in Barclays at the height of the financial crisis due to the bank’s hedge-fund liabilities. The stance against the bank came from a former director at the International Petroleum Investment Company, which used to run Abu Dhabi’s sovereign wealth fund, the High Court learned on 15 July in the latest twist in Amanda Staveley’s £1.5bn case against the lender.
Putnam Fund Trims Bet on Depressed Mall Debt at Loss (The Wall Street Journal)
A Putnam Investments bond fund is under pressure from an expensive wager on America’s depressed shopping malls. The Putnam Diversified Income Trust entered into hundreds of millions of dollars in complex financial contracts tied to a mortgage-linked index with a concentration in malls. The fund trimmed its bet at a loss in recent months.