Billionaire Hedge Fund Manager Paul Tudor Jones Joins Pledge to Give Away Half his Fortune (CNBC)
Hedge fund manager and legendary trader Paul Tudor Jones has joined Bill Gates and Warren Buffett’s pledge to give more than half of his wealth away to charity. Tudor Jones is among 19 philanthropists who have signed the Giving Pledge in the last year, a commitment created by Gates and Buffett to donate at least half of one’s fortune to philanthropic causes during their lifetime or after their death.
David Tepper Leaves a Void That’s Tougher to Fill (Bloomberg)
The hedge fund industry boasts some of the best money managers on the planet, but good luck investing with them. There are precious few, and it’s never clear who they are in the beginning. By the time their skills are apparent, they’ve already amassed a fortune and no longer need investors’ money. Investors were reminded of that quandary last week with the news that David Tepper, founder of hedge fund Appaloosa Management, plans to return money to outside investors and focus on managing his own fortune, which includes the Carolina Panthers football team he bought last year. Tepper founded Appaloosa with just $57 million in 1993 but soon closed the fund to new investors as his fame grew and money poured in. Those who weren’t invested with Tepper from the start, or close to it, never had the opportunity.
Hedge Funds Managing Well as the Tech Sector Navigating Troubled Waters (Opalesque.com)
As the U.S. aims to deglobalize the tech industry and protect its national interests, the tech sector is navigating troubled waters. The L/S Equity managers at Lyxor have managed the sudden tech sector repricing so far. Communication and tech positions remain dominant in portfolios, but several warnings earlier this year led managers to reduce net exposures, Lyxor said in its weekly brief. Since the unexpected trade and tech war escalation in early May, they continued to trim their tech positions (especially the semi and hardware stocks) while adding to the defensive sectors. “At a fund level, EM and Chinese focused strategies suffered the most, but the drag on the other UCITS L/S equity strategies that we monitor was smoother,” Lyxor pointed out. Their higher correlation and limited returns dispersion suggest homogeneously cautious exposures to tech.
San Francisco Hedge Fund Firm Seeks Capital for VC Fund (Institutional Investor)
EcoR1, whose founder was named a Hedge Fund Rising Star in 2015, has produced strong performance in its main hedge fund for the past few years. EcoR1 Capital, an up-and-coming hedge fund firm focused on biotechnology, is raising a venture capital fund, according to a regulatory filing.The firm is seeking capital for the EcoR1 Venture Opportunity Offshore Fund, the filing shows. The minimum investment is $2 million. EcoR1, founded by Oleg Nodelman in 2012, invests in biotech companies…
Hedge-Fund Titan Sees Brazil in a ‘Gray Zone’ Even With Reform (Bloomberg)
Brazil’s plan to overhaul its pension system has become a make-or-break issue for markets, which rally on signs of the bill’s progress and sink on its setbacks. But for one of the nation’s most revered hedge-fund firms, the biggest concern lies in what comes next. “The government will probably deliver something acceptable in terms of pension reform, but I’m a little worried on what you’re going to get afterward,” said Leonardo Linhares, a partner at SPX Capital, Brazil’s biggest independent hedge-fund firm with almost 40 billion reais ($9.9 billion) under management. “I’m not optimistic about the next steps.”
Hedge Fund Guru Ray Dalio: Invest in Idea Meritocracy (Fast Company)
Paperboy. Snow shoveler. Golf caddy–including for Richard Nixon and the Duke of Windsor. Ray Dalio has had a lot of jobs. But the one he’s best known for is founder and current co-CIO and cochair of Bridgewater Investments, the most successful hedge fund in history and one of Fortune‘s five most important private American companies. He has been called the “Steve Jobs of investing” and named one of Time‘s Most Influential People. Dalio has also written the best seller Principles: Life and Work and, more recently, Principles for Navigating Big Debt Crises.