Dalio, Summers Still See Risk U.S. Overheats After Fed Shift (Bloomberg)
Former Treasury Secretary Lawrence Summers and billionaire investor Ray Dalio said the U.S. is headed for a period of overheating and inflation that could threaten the economic recovery, even as the Federal Reserve signaled it would step in before that happened. “It’s easy to say that the Fed should tighten, and I think that they should,” said Dalio, the founder of Bridgewater Associates, the world’s biggest hedge fund. “But I think you’ll see a very sensitive market, and a very sensitive economy because the duration of assets has gone very, very long. Just the slightest touching on those brakes has the effect of hurting markets because of where they’re priced, and also passing through to the economy.”
PE Daily: TPG Rise Seeks $5 Billion for Climate Fund | Cerberus to Buy Bank Unit | WSIB Backs New Warburg Pincus Fund (The Wall Street Journal)
Welcome to the start of another week! Late last week, the Washington State Investment Board disclosed a handful of new commitments on some new funds that have been seeking capital, including most notably a new climate-focused fund being pitched by TPG Rise, as Preeti Singh writes. Meanwhile, Chris Cumming has news of the investment board’s pledge to a new Warburg Pincus fund and our colleague Simon Clark covers Cerberus Capital Management’s plan to acquire an ailing French retail bank from HSBC Holdings PLC.
Jim Simons’ Renaissance Technologies Suffers $11 Billion of Client Withdrawals in 7 Months, Report Says (Business Insider)
Jim Simons‘ Renaissance Technologies has suffered an $11 billion outflow of client funds in seven months as investors have tired of its poor performance, Bloomberg reported, citing investor documents. Simons, a former NSA codebreaker and MIT math professor, founded RenTech in 1982 and built it into one of the world’s largest and most successful quantitative hedge funds. While the internal Medallion Fund has continued to shine, RenTech’s three public funds delivered their worst performance ever in 2020, and trailed the broader market in the first five months of this year, Bloomberg said.
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The Investment Chief Overseeing George Soros’s $27 Billion Firm Says Mega-Cap Tech Stocks are Cheap compared to Late-Stage Private Firms – and Taps Them as Her Top Pick for the Next Decade (Business Insider)
The woman who manages the fortune of one of the world’s richest men said she recommends steering clear of late-stage private companies and thinks large-cap tech companies are a strong long-term investment. Dawn Fitzpatrick – the chief investment officer for Soros Fund Management, which runs billionaire George Soros‘s vast fortune – said that while March of 2020 was a time for action, June of 2021 is a time for patience. Speaking at the New York poverty-fighting charity Robin Hood’s annual conference Wednesday, Fitzpatrick said Soros is in the process of rebuilding its cash reserves after putting money to work last spring when the pandemic shut down the global economy.
Ackman’s SPAC Takes Universal Music Group Stake in $4B Deal (Fox Business)
Billionaire hedge fund manager Bill Ackman has agreed to buy 10% of Universal Music Group for about $4 billion. Ackman’s special-purpose acquisition company (SPAC) Pershing Square Tontine Holdings will purchase the minority stake in Universal Music Group, which represents artists including Billie Eilish and Drake, from French conglomerate Vivendi SE. The deal, which is based on an enterprise value of 35 billion euros ($41.55 billion), is expected to close no later than Sept. 15, 2021.
No Bitcoin for Volt (Hedge Nordic)
Stockholm (HedgeNordic) – Man Group’s quantitative investment unit AHL is already trading bitcoin futures, while Renaissance Technologies’ Medallion Funds have received permission to enter into bitcoin futures transactions – albeit limited to cash-settled futures contracts traded on the CME. Swedish fundamentals-based systematic Volt Diversified Alpha, however, is not planning on touching bitcoin because of a lack of fundamentals.
Loeb Builds Vivendi Stake at Crunch Time for Bollore’s Empire (Bloomberg)
U.S. activist investor Dan Loeb has built a stake in Vivendi SE at a critical moment for French billionaire Vincent Bollore’s media group, with shareholders due to vote on plans to spin off the world’s biggest music company. Two other activists, Bluebell Capital Partners and Artisan Partners, are already lobbying against Vivendi’s plan for separating Universal Music Group, saying it will lumber most shareholders with a heavy tax bill and needs to be organized differently.
Event-Driven Hedge Fund Sinclair Capital Hires IR and Business Development Head (Hedge Week)
Sinclair Capital (Sinclair Capital), a London-based alternative investment company established in May 2017 that is focused on discovering and researching liquid, uncorrelated, and asymmetric M&A-driven opportunities with a bias for Europe and small-mid caps, has appointed Charlotte Hervouet as Partner and Head of Business Development and IR. With over 19 years of experience working in business development and investor relations in the financial services sector, in her new role, Hervouet will be responsible for leading all asset raising activities for Sinclair Capital as well as providing client service and facilitating in all due diligence requirements. She will work alongside the organisation’s executive leadership team to evolve the company brand, expand its footprint, and support revenue growth.
Saba Capital Income & Opportunities Fund Announces Commencement of Tender Offer for its Common Shares (BusinessWire)
NEW YORK–(BUSINESS WIRE)– Saba Capital Income & Opportunities Fund (NYSE: BRW) (the “Fund”) today announced the commencement of a tender offer for its outstanding common shares. As previously announced, the Fund will purchase for cash up to 30% of its outstanding common shares, at a price equal to 99% of the Fund’s net asset value (“NAV”) per share as determined as of the close of the regular trading session of the New York Stock Exchange (“NYSE”) on the day the tender offer expires. The tender offer will expire at one minute past 11:59 p.m. Eastern Time on July 19, 2021, unless otherwise extended.
Insider Trading: June 21, 2021 (BIV.com)
Insider Allyn Knoche, 10% owner. Company: FPX Nickel Corp. (TSX-V:FPX). Shares owned: 33,696,844. Trade date: June 4. Trade total: $420,000. Trade: Sale of 700,000 shares at a price of $0.60 per share. Insider Eric S. Sprott, 10% owner. Company: Brixton Metals Corp. (TSX-V:BBB). Shares owned: 20,345,168. Trade date: June 7. Trade total: $400,000. Trade: Sale of 2,000,000 shares at a price of $0.20 per share.
The Interim President & Chief Executive Officer of Hudbay Minerals (NYSE: HBM) is Selling Shares (Analyst Ratings)
Today, the Interim President & Chief Executive Officer of Hudbay Minerals (HBM), Peter Gerald Jan Kukielski, sold shares of HBM for $491.2K. Following Peter Gerald Jan Kukielski’s last HBM Sell transaction on April 02, 2020, the stock climbed by 4.3%. In addition to Peter Gerald Jan Kukielski, 2 other HBM executives reported Sell trades in the last month. Based on Hudbay Minerals’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $314 million and GAAP net loss of -$60,102,000. In comparison, last year the company earned revenue of $245 million and had a GAAP net loss of $76.13 million. The company has a one-year high of $9.60 and a one-year low of $2.71.
Peloton Interactive Inc (PTON) COB and CEO John Paul Foley Sold $10.8 million of Shares (Guru Focus)
COB and CEO of Peloton Interactive Inc, John Paul Foley, sold 100,000 shares of PTON on 06/15/2021 at an average price of $108.42 a share. The total sale was $10.8 million.
