Billionaire Investor Ray Dalio: Fed Raised Rates to a Point Where It’s Hurting Asset Prices (CNBC)
Hedge fund billionaire Ray Dalio argued Thursday that the Federal Reserve has raised rates to a point where they’re hurting asset prices. The central bank needs to start looking at monetary policy’s impact on asset prices before economic conditions, Dalio said, adding he would err on the side of caution on rate hikes. The Fed has already raised rates three times this year, and one more is expected in December. “We’ve raised interest rates to a level that it’s hurting asset prices,” the founder of Bridgewater Associates said in an interview with CNBC’s “Squawk Box.” “We’re in a situation right now that the Fed will have to look at asset prices before they look at economic activity. It’s a difficult position.”
Duquesne, Jana Among Fund Investors Breaking Up With Facebook (Bloomberg)
(Bloomberg) — Billionaire Stanley Druckenmiller’s love for Facebook Inc. proved short-lived, and he’s not alone. The social-media giant, a onetime hedge fund darling, saw a number of high-profile investors hit the exit during the third quarter, when an earnings miss in July erased $120 billion from its market capitalization in a single day. The shares fell 15 percent in the three months ended Sept. 30. Druckenmiller’s Duquesne Family Office reversed course on a $178 million stake it built in the second quarter, slashing that to $3.6 million, according to a filing Wednesday.
Proxy Advisory Firm ISS Favors Vote for Third Point Nominees at Campbell (Reuters)
NEW YORK (Reuters) – Shareholder advisory firm Institutional Shareholder Services on Wednesday recommended that Campbell Soup Co investors elect all five of Third Point hedge fund’s board nominees, giving a boost to the activist firm, which is fighting a high profile proxy battle with the company. “The dissident slate seems well qualified to contribute to the company’s turnaround by providing relevant industry expertise, fresh ideas, and a greater sense of urgency,” ISS said in a report, adding “As such, votes FOR all dissident nominees are warranted.”
Oil Hedge Fund Giant Hammered in Crude’s Slide (The Wall Street Journal)
A high-profile victim of the recent oil price rout is also one of the last oil hedge funds left standing. Pierre Andurand, who earlier in 2018 predicted oil could soon hit $100 a barrel, suffered the largest-ever monthly loss of his flagship fund in October. The $1 billion Andurand Commodities Fund lost 20.9% last month, taking the fund down more than 12% for the year, according to numbers sent to investors and reviewed by The Wall Street Journal.
Singer’s Elliott Takes New Stake in LogMeIn After Share Drop (Bloomberg)
Elliott Management Corp. disclosed that it has again taken a stake in the software company LogMeIn Inc., whose shares have tumbled 28 percent this year. The hedge fund run by billionaire Paul Singer held a 2.4 percent position in Boston-based LogMeIn as of Sept. 30, according to a regulatory filing Wednesday. LogMeIn’s shares plunged in July after it reduced its guidance for the year, amid a series of execution issues that it said its competitors had taken advantage of…
Detour Gold Agrees to Two Paulson Nominees for Its Board (Reuters)
(Reuters) – Detour Gold Corp (DGC.TO) said on Thursday it agreed to name two of investor Paulson & Co.’s nominees to its board as it looks to end a proxy fight with the hedge fund that had called for a complete overhaul of the board. The gold miner also said its interim chief executive officer would step down as a director and it would start looking for a new CEO once the proxy fight ends. Paulson & Co, which has a 5 percent stake in the miner, had also called for the company to explore strategic alternatives including a sale. Billionaire John Paulson, the hedge fund’s manager, said the company had failed to recruit and oversee a management team capable of operating its main mine in a manner that delivers returns to shareholders, Bloomberg reported in June.