Maniyar’s ‘Man and Machine’ Macro Strategy Spins Out of Tudor with Assets of Over USD1 Billion (Hedge Week)
A major new standalone operation in the quant-driven, discretionary global macro space has gone live with the spin-out this month of Maniyar Capital Advisors (MCA) from Tudor Investment Corporation. MCA, which started trading on 1 May with assets in excess of USD1 billion, will utilise the same strategy and structure that was previously run for several years within Tudor – and which is believed to have delivered strong returns for investors through a variety of market environments. Founder, CEO and CIO Dharmesh Maniyar was a senior portfolio manager and partner at Tudor from 2013, having previously spent five years as a portfolio manager at Brevan Howard Asset Management.
Hedge Funds Make Money in April, Citadel Gains 4% in Month, Investors Say (Reuters)
BOSTON (Reuters) – Hedge funds recorded gains in April when stocks posted their biggest monthly return in decades thanks largely to government rescue packages designed to fuel growth stalled by lockdowns to fight the coronavirus pandemic, managers and investors said. Citadel, the Chicago-based hedge fund giant which relies on teams of traders to make bets on stocks, bonds, commodities and other securities, earned a 4% return in its flagship Wellington hedge fund last month, according to a performance estimate. The fund is now up 10% for the year, a person familiar with the numbers said. Similarly, Pershing Square Capital Management, the New York-based hedge fund that pushes companies to perform better, gained 5.6% in the first three weeks of April, leaving it up 9 percent for the year through April 21, data show.
Hedge Fund Chenavari CEO Sees ‘Exceptional Opportunity’ (Bloomberg)
“At this stage of the crisis, we think that idiosyncratic default risk might be high, given the fact that we still don’t know how we will exit from the lockdown period, whether there will be a second wave, and how the forward cash flows of companies will sustain this,” says Chenavari Investment Managers CEO & Co-CIO Loic Fery. He speaks with Francine Lacqua on “Bloomberg Surveillance.” (Source: Bloomberg)
Billionaire Bill Ackman Explains How He Pulled Off a Deal Described as ‘the Single Best Trade of All Time’ (Business Insider)
In a New York Times op-ed article published Wednesday, the former investment banker William Cohan said Bill Ackman‘s hedging decision “may be the single best trade of all time” and lauded his correct bet that until the Federal Reserve and Congress acted, the markets would tank. Ackman, the billionaire hedge-fund manager, had an intuition that the coronavirus-driven market meltdown would have a greater impact than investors expected. That led him to mint a multibillion-dollar profit in March, turning a $27 million position into a $2.6 billion windfall through defensive hedge bets as the coronavirus outbreak threatened a deep economic recession.
Dalio, Howard, Hintze: How Have Hedge Fund Managers Performed Amid Market Chaos? (CMCMarket.com)
Legendary hedge fund manager Ray Dalio boldly advised investors in a January TV interview, “Get out of cash. Cash is trash!”. Those who acted on the Bridgewater Associate founder’s advice may now wish they hadn’t. As the devastating global impact of coronavirus sent markets into freefall, investors pulled $33bn from hedge funds — one per cent of the industry’s capital and the biggest quarterly drawdown since 2009 — while currency has become one of the safest options out there.
Need A Job? David Shaw’s Hiring (Deal Breaker)
Are you among the 30 million Americans who have lost jobs over the past six weeks? Or the 3.5 million kids about to graduate from high school or 1.3 million from college remotely, sans cap-and-gown, and now facing the worst job market imaginable and the prospect of working from the back foot economically for a decade? Are you not among the lucky bankers allowed to keep their jobs for now? Did you not get one of those gigs at Citadel or HSBC? Well, you’re in luck, because someone else is still hiring: D.E. Shaw & Co.
Gates-Backed IPO Could Revolutionize Drug Development (Forbes)
A software company backed by Bill Gates and hedge fund legend David Shaw is about to disrupt the pharmaceutical industry. Schrodinger uses breakthrough artificial intelligence to help companies discover new drugs faster and cheaper. Shares debuted Feb. 5 and promptly soared. Then the coronavirus hit. COVID-19 may have stolen the spotlight for now. But that won’t be the case for long. Schrodinger is unique, and not just because of the interest from Gates and Shaw — who combined control 50% of the business.
AI Funds Decline – Then Recover—During Market Turmoil (The Wall Street Journal)
Hedge funds that use artificial intelligence models to suggest trades and stock picks declined when stock markets unraveled in late February, but now have largely recovered, according to benchmarks tracking these strategies. Yet market experts warn the unpredictable nature of the economy these days could trip up some algorithms that continue to rely on data gathered during better times.
Einhorn’s Greenlight Capital Sold out of General Motors: Letter (Reuters)
BOSTON (Reuters) – Hedge fund Greenlight Capital said it sold its position in carmaker General Motors, saying the company’s forecast for 2020 was worse than the hedge fund had expected. “General Motors was a disappointment,” the firm wrote to investors in a letter seen by Reuters. “We sold our stock.” During the five years that Greenlight owned shares in the carmaker, the hedge fund earned an internal rate of return of 9.6%, the letter said.
A Director at Unity Bancorp (NASDAQ: UNTY) is Buying Shares (Analyst Ratings)
Today, a Director at Unity Bancorp (UNTY), David Dallas, bought shares of UNTY for $305.6K. In addition to David Dallas, 2 other UNTY executives reported Buy trades in the last month. This recent transaction increases David Dallas’ holding in the company by 1.16% to a total of $29.72 million.
Guardant Health Inc (GH) Chairman, President and COO Amirali Talasaz Sold $4.5 million of Shares (Guru Focus)
Chairman, President and COO of Guardant Health Inc., Amirali Talasaz, sold 56,433 shares of GH on 04/29/2020 at an average price of $80.31 a share. The total sale was $4.5 million. Guardant Health Inc has a market cap of $7.28 billion; its shares were traded at around $76.96 with and P/S ratio of 32.69. GuruFocus has detected 2 severe warning signs with Guardant Health Inc.
Friday 5/1 Insider Buying Report: AGNC, FHN (Nasdaq.com)
At AGNC Investment, a filing with the SEC revealed that on Thursday, Director John D. Fisk bought 15,628 shares of AGNC, at a cost of $12.77 each, for a total investment of $199,570. Bargain hunters can grab AGNC even cheaper than Fisk did, with the stock changing hands as low as $12.15 at last check today which is 4.9% below Fisk’s purchase price. AGNC Investment is trading off about 1.3% on the day Friday. And at First Horizon National, there was insider buying on Wednesday, by Director Mark A. Emkes who purchased 10,000 shares for a cost of $9.42 each, for a total investment of $94,200. First Horizon National is trading down about 5.7% on the day Friday. Investors are able to buy FHN even cheaper than Emkes did, with the stock trading as low as $8.51 in trading on Friday which is 9.7% below Emkes’s purchase price.
SEC Awards Over $18 Million to Whistleblower (HedgeCo.net)
(HedgeCo.Net) The Securities and Exchange Commission today announced an award of more than $18 million to a whistleblower whose significant information prompted an examination that resulted in an important enforcement action. The whistleblower repeatedly reported the problem internally before contacting the SEC. “Because of this whistleblower’s actions, harmed investors were able to recover millions of dollars in losses,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “This whistleblower stepped forward and helped the agency better protect Main Street investors.” The SEC has awarded over $448 million to 81 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.