Dalio Forges ESG Partnership with French Firm (AI-CIO.com)
Ray Dalio’s hedge fund firm, Bridgewater Associates, is launching a sustainability strategy in Europe, upping its exposure to the environmental, social, and governance (ESG) investing trend. Bridgewater, the world’s largest hedge operation with $140 billion in assets, aims to open a sustainable fund next year. Dalio is no stranger to ESG efforts: In 2018, he and fellow billionaire Mike Bloomberg announced a marine biology venture focused on ocean conservation. Bridgewater previously has advised clients on ESG investing.
Why This Former Billionaire And Goldman Sachs Veteran Now Sees Bitcoin Hitting $50,000 In 2021 (Forbes)
Bitcoin has surged over the last few weeks, smashing through its 2017 peak and treading fresh ground for the first time in three years. The bitcoin price has more than doubled in the last two months, a bull run that began when payments giant PayPal PYPL -1.6% announced it would support bitcoin purchases (though with a worrying catch). Now, former hedge fund billionaire-turned bitcoin and crypto investor, Michael Novogratz, has said he can see bitcoin hitting $50,000 next year—predicting bitcoin will eventually “eclipse gold.”
Caspian Capital Partner Talks Pandemic Investing and the Reopening Trade (The Wall Street Journal)
This was a historic year for the financial markets. The panic selling set off in the spring as swaths of the economy shut down created opportunities for investors focused on distressed debt and undervalued assets. The massive selloff, however, quickly gave way to a big rally in debt prices as the Federal Reserve stepped in to prop up the corporate bond market. Adam Cohen, managing partner at Caspian Capital LP, a distressed debt hedge fund with $4 billion under management, spoke with WSJ Pro Bankruptcy about how he navigated…
Venture Investors Like Andreessen Horowitz, GGV, Coatue and Others are Already Set to have a Big 2021. Each has Multiple IPOs in the Works. (Business Insider)
More than a dozen tech startups are gearing up for an IPO in 2021, including multibillion-dollar unicorns Coinbase, Robinhood, Instacart, and Roblox. Some of Silicon Valley’s biggest venture firms like Andreessen Horowitz, Sequoia, Index, Founders Fund, Kleiner Perkins and GGV are set to see major returns for their investors from these IPOs because each of them has stakes in more than one company. Hedge funds like Coatue, one of the most prolific investors in growth-stage startups, should also be among the biggest winners, as should Tiger Management.
Beloved Hedge-Fund Trade Delivers Best FX Returns Since 2012 (Bloomberg)
A foreign-exchange strategy popular with hedge funds is having its best quarter in eight years, with investors betting that there are more gains to come in 2021. Carry trades — which use funds borrowed in a currency with low interest rates to invest in one with a higher yield, such as those of developing nations — have returned 6.7% since Sept. 30, according to a Bloomberg index that tracks speculation on eight emerging-market currencies. That’s on track for the best quarter since the first three months of 2012. Those who used dollars to buy the South African rand have reaped a 16% windfall since the end of September, while wagers on the Colombian peso have gained 11%, data compiled by Bloomberg show.
Privium Fund Management to Launch SAVIN Multi-Strategy Arbitrage Fund (Hedge Week)
Privium Fund Management BV is to launch the SAVIN Multi-Strategy Arbitrage Fund (SAVIN), which will focus on equity arbitrage strategies and volatility trading, in February 2021 having already received commitments in excess of EUR20 million (USD24 million). The Fund’s objective is to achieve an average annual return of 8 per cent, net of fees, with a low volatility and low correlation to equity markets. To achieve this, the strategy of the Fund is to employ complementary arbitrage strategies, striving for positive returns regardless of market conditions or general market direction.