Bridgewater Plans to Become a Partnership as Ray Dalio Takes a Step Back (The New York Times)
Bridgewater Associates, the world’s largest hedge fund, has long been tightly controlled by its founder, Ray Dalio, and his top two lieutenants. That is about to change. In the coming months, the firm will reshape itself, becoming a partnership that will give its top executives significantly more say in how the $150 billion fund is run. The new partnership model, which was announced to employees and clients on Thursday, is the latest step in a plan for Mr. Dalio, 68, to play less of a day-to-day role managing the company over the next decade.
Exclusive: Paulson’s Top Real Estate Executives Start Own Firm (Reuters)
BOSTON (Reuters) – Billionaire investor John Paulson’s top real estate executives are launching their own investment firm with $1 billion and the hedge fund manager’s blessing, sources familiar with the matter said. Michael Barr, a portfolio manager who headed real estate investing at Paulson & Co, and Jonathan Shumaker, a Paulson partner, will be spinning out the firm’s two existing real estate funds into an independent private equity firm. Cross Lake, based just a few blocks north of Paulson’s Midtown Manhattan offices, will continue to oversee Paulson’s Real Estate Recovery Fund, LP, launched in 2010, and Paulson Real Estate Fund II, LP, launched in 2013.
Novogratz’s Galaxy Invests $20 Million in Virtual Reality Platform (Reuters)
NEW YORK (Reuters) – Hedge fund manager Mike Novogratz’s investment fund has invested $20 million in a blockchain-based virtual reality platform called High Fidelity, the project’s chief executive officer and co-founder Philip Rosedale announced on Thursday. High Fidelity raised $35 million in its latest funding, with Novogratz’s Galaxy EOS Ecosystem Fund investing $20 million. Blockchain Capital, a venture capital firm focused on the blockchain space also invested in the virtual reality start-up along with existing investors such as including Breyer Capital, IDG Capital Partners and Vulcan Capital. Rosedale said High Fidelity has raised more than $70 million so far.
State To Investigate Elections Complaint Against David Stemerman (Hartford Courant)
The state has opened up an elections probe into the gubernatorial campaign of David Stemerman, who is accused of using out-of-state petition circulators to get onto the primary ballot by a backer of GOP rival Tim Herbst. The investigation is being conducted by the state Elections Enforcement Commission, which last week voted to take up a complaint by Newington Republican Benjamin Ancona Jr., according to a June 21 letter from the agency. The thrust of Ancona’s complaint against the Greenwich hedge fund mogul is that Stemerman flouted a state law that requires those collecting signatures to be Connecticut residents and registered with the party of the candidate for whom they are working or volunteering.
Selling Steve Cohen (DealBreaker)
As you may have heard, Steve Cohen’s triumphant return to the hedge fund has been somewhat less than, uh, triumphant. Dreams of $10 billion in other people’s money to play with have faded into the $3 billion reality. And instead of parades and flash mobs and burning effigies of Preet Bharara, the grand re-entry was marked with a sex discrimination lawsuit from the woman charged with helping the great man drum up some decent talent for a change.
Hedge Fund That Made 6,000% on VIX Jump Bets on Next Blow-Up (Bloomberg)
A hedge fund that reaped an outrageous gain in February’s vol-mageddon is eyeing a fresh target. Houndstooth Capital Management LLC secured a 6,000 percent return from a bearish bet on an exchange-traded product tied to calm markets. Now, the $7.5 million fund sees trouble in an ETF designed to profit from the opposite — turbulence in stocks. It’s wagering technical forces in the volatility complex will help spur a swift return to stability in the wake of a blowout, undoing the leveraged product in its wake.