Citadel Hires Portfolio Managers for Credit, Stock Teams (Reuters)
BOSTON, June 3 (Reuters) – Hedge fund Citadel, whose flagship portfolio is posting double-digit gains this year, has hired for its investment teams even as many corporations cut staff after the coronavirus outbreak shuttered large parts of the U.S. economy. Chicago-headquartered Citadel, which invests $32 billion, recruited four portfolio managers from other funds for its credit and equity teams, a Citadel spokeswoman said on Wednesday.
GOP Donor-Run Hedge Fund has Seat on Twitter Board But Can’t Say Anything About Tech Firm’s Policies (CNBC)
Powerful GOP donor Paul Singer is founder and co-CEO of a hedge fund with a seat on Twitter’s board. But that doesn’t mean Singer can influence the social media giant’s policies to be more sympathetic to his party or President Donald Trump – even as the commander in chief rails against Twitter. As part of a deal with Twitter earlier this year, the fund, Elliott Management, agreed that it will neither share its opinion on Twitter policy nor try to influence its decisions.
Philip Falcone Claims He Can’t Pay $60,000 Settlement, Former Chef Says (Bloomberg)
Philip Falcone’s onetime chef says the former hedge fund manager never paid him the $60,000 he agreed to in a settlement over alleged racist remarks. The chef, Brian Villanueva, sued Falcone and his wife in federal court in New York last year, claiming they created a hostile work environment in which he was mocked for his Asian heritage with stereotypical accents and jokes about eating dogs. Villanueva is a Filipino.
Macro Hedge Funds Lead the Pack in May – But Lyxor Urges Caution on Oil Rally (Hedge Week)
Global macro managers have outflanked the rest of the hedge fund pack in recent weeks, with discretionary funds and emerging markets-focused strategies building momentum as markets recovered and oil prices rebounded, new analysis by Lyxor Asset Management shows. Global macro strategies rose 2.4 per cent last month, as discretionary funds and managers trading emerging market strategies seized on the recent trend reversals across risk assets during Q2, Lyxor’s cross-asset research team said. By maintaining or increasing risk in portfolios during March’s historic sell-off, EM and discretionary macro funds were able to outperform their systematic counterparts, said the note, which was compiled by senior strategists Philippe Ferreira and Jean-Baptiste Berthon, and hedge fund analyst Pierre Carreyn.
Billionaire Hintze’s Hedge Fund Rocked by Pandemic Losses (Bloomberg)
The outsiders that Michael Hintze brought in to his secretive hedge fund firm didn’t last long. Nor did their growth plans. The billionaire’s firm, known as CQS, a bastion of money-making whose flagship fund has returned more than three times the average of hedge fund peers since it opened in 2005, is now headed in reverse. The Hintze-managed fund plunged as much as 45% in March and April — its worst-ever loss — missing the rebound that followed the initial shock from the coronavirus pandemic even as peers recovered to post gains in April. More than $3 billion of assets were erased, leaving the firm with $16 billion. And that doesn’t include potential withdrawals from the fund’s clients, who are required to give six months’ notice.
BMS Had its Best Month Since 2005 (Hedge Nordic)
Stockholm (HedgeNordic) – Brummer Multi-Strategy, a multi-strategy fund investing in the single-strategy hedge funds under the umbrella of Brummer & Partners, enjoyed its best month since 2005 after gaining an estimated three percent in May. The Brummer fund of funds is now up 1.2 percent year-to-date through the end of May. Following the closure of Bodenholm earlier this year, Brummer’s multi-strategy fund is currently invested in nine different single-strategy hedge funds. “Seven out of nine investment strategies contributed positively to BMS’s performance in May,” says Brummer Multi-Strategy’s monthly commentary for May.
Investor Dan Niles Dumps Disney After Rebound, Stays Out of Apple on Valuation Concerns (CNBC)
Hedge fund manager Dan Niles told CNBC on Tuesday he sold his position in Disney following its recent rally and Apple’s sky-high valuation kept him on the sidelines of the technology giant.