Billionaire Ray Dalio is One of the World’s Richest Hedge Fund Managers. Here are His Best Quotes on Everything from the Markets to Meditation. (Business Insider)
Legendary hedge fund investor Ray Dalio is renowned figure in the world of finance, but is equally famous for his views on life, investing, and much more. The founder of Bridgewater Associates made a whopping $US2 billion last year, the Institutional Investor’s annual Rich List, shows. Dalio recently said the American dream “does not exist” right now and that if leaders don’t act the whole economic system of capitalism could collapse during the coronavirus-induced recession.
Art Industry News: Hedge-Fund Manager Ken Griffin Just Bought a Basquiat From Peter Brant for More Than $100 Million + Other Stories (ArtNet News)
Ken Griffin Buys a $100 Million Basquiat – The art market has always seemed to operate in its own universe, somewhat disconnected from the reality of the rest of the world—and right now is no different. According to the industry newsletter Baer Faxt, hedge-fund manager Ken Griffin purchased a work by Jean-Michel Basquiat privately for more than $100 million. (The news comes as New York’s major spring auctions have been rescheduled and activity at the top of the art market has been quiet.) The seller was reportedly Peter Brant, Griffin’s new neighbor in Palm Beach, who mounted a glitzy display of the artist’s work at his private museum in Manhattan last year. Basquiat’s public auction record is $110.5 million, set at Sotheby’s in 2017.
How a Hedge Fund Firm Sidestepped the First Quarter’s Market Carnage (Institutional Investor)
Many hedge fund firms initially underestimated the threat of the coronavirus. Cinctive Capital was not one of them. Cinctive, founded by Diamondback Capital Management veterans Larry Sapanski and Richard Schimel, launched in September with backing from PAAMCO Launchpad, the joint venture between the Employees Retirement System of Texas and investment firm PAAMCO Prisma to seed and support emerging hedge fund managers. Cinctive, headquartered in New York City’s Hudson Yards, is a long-short equity fund using a multi-manager approach, with numerous investment teams covering roughly half a dozen sectors.
Former Marshall Wace and Odey Stock-Picker Launches Value Investing Hedge Fund (Financial News)
A former stock-picker at Marshall Wace and Odey Asset Management has launched a London-based hedge fund, seeking to profit from under-valued listed and private companies in the consumer and tech sectors. According to a source close to the situation, Francesco Fredella has partnered with Angel Capital Management, an Italian private investment firm that specialises in value investing, to launch Pecten Capital, which has rented an office in Mayfair’s Savile Row. Fredella joined Marshall Wace, the London-based hedge fund, from Odey Asset Management. He left in 2018 after a decade as a fundamental analyst stock-picker.
Hedge Fund Bets Made March Market Chaos Much Worse, BOE Says (Bloomberg)
The Bank of England is planning to ask “hard questions” about highly leveraged investors after hedge funds contributed to extreme market volatility during the coronavirus outbreak. Andrew Hauser, the BOE’s executive director of markets, said on Thursday that hedge-fund trading strategies in U.S. government debt morphed into “stress amplifiers” in March, when fund managers raced to meet rising margin calls.
Inside a ‘Big Short’ Bet Against Malls: Investors are Claiming Wins, and a Research Analyst Who Said the Wagers were Misguided is Out (Business Insider)
The senior research analyst who helped defend AllianceBernstein’s $4 billion bet on an index tied to a pool of increasingly-risky mortgage securities is leaving the firm. Brian Phillips, a 14-year veteran at AllianceBernstein, will be taking a job on the West Coast with Pacific Life and said his departure had nothing to do with the index, known as CMBX 6. The index has been the focus of one of the biggest shorts on Wall Street, a $5 billion bet against the mortgage securities by billionaire Carl Icahn. Almost 40% of the securities tied to CMBX 6 are connected to retail properties, including malls, which have been battered by the Covid-19 crisis. MP Securitized Credit Partners told Business Insider it reaped 120% returns on about $50 million of swaps purchased in February in a special equity vehicle that’s separate from its main fund.
Ray Dalio-Inspired Fund in the Nordics (Hedge Nordic)
Stockholm (HedgeNordic) – After starting a long/short equity fund under the umbrella of his family office at the beginning of 2018, Linköping-based fund manager Alexander Hyll (pictured) can now welcome external investors into Adaptive Paradigm Alpha after receiving an AIF license from Finansinspektionen earlier this year. The fund has enjoyed only positive months this year and gained 4.5 percent year-to-date through the end of May. Inspired by Ray Dalio of Bridgewater Associates, Alexander Hyll seeks to position Adaptive Paradigm Alpha’s portfolio to capitalize on global paradigm shifts, which represent specific market dynamics that tend to persist for more extended periods of time. “We believe that the economy works like a machine, in so far that a certain stimulus or contraction has a given foreseeable effect,” explains Hyll. “By taking our understanding of the economy and putting it into numbers, we identify these cause-effect relationships, which we call paradigms, in order to find investment opportunities on which we build a portfolio with stable, reliable returns,” he describes Adaptive Paradigm Alpha’s investment philosophy.