Billionaire Hedge Fund Manager Ray Dalio Shares His China Strategy (CNBC)
SINGAPORE — Many investors have cut their exposure to China in 2020. But one billionaire hedge fund manager has a strategy that begins with “balance.” Ray Dalio told CNBC’s “Street Signs Asia” on Wednesday that the way to play the Chinese market is to first build a diversified portfolio.
Sachem Head Takes $1.2 Billion Position in Elanco, Stock Price Surges (Reuters)
BOSTON (Reuters) – Hedge fund Sachem Head Capital Management has built a $1.2 billion stake in Elanco Animal Health Inc ELAN.N and plans to push for changes at the company that makes medicines and vaccinations for pets and livestock, a person familiar with the matter said on Wednesday. The investment, first reported by Bloomberg, translates into a stake of 9.1% in Elanco which is valued at $14 billion.
Oldest Danish Hedge Fund Shuts Down (Hedge Nordic)
Stockholm (HedgeNordic) – The longest-running Danish hedge fund has shut down after more than 17 years of operations. C WorldWide Long/Short Fund, most recently managed by David Rindegren of independent asset manager C WorldWide Asset Management, was wound down last month after suppressed market volatility stemming from central bank interventions has made lower risk, lower return funds focused on downside protection less attractive to investors. “The prolonged time-period of central bank suppressed volatility has made investors not wanting to invest in products that provide returns at a lower volatility level and downside protection,” portfolio manager David Rindegren wrote in a monthly letter to investors. “If stock markets only can go up, then paying an extra fee for downside protection does not make sense,” he added. “Only the future will tell for how long central banks can keep us in this one-way-market.”
Hedge Funds Fall Flat When It Comes To Diversifying Their Ranks (FA-Mag.com)
The place might sound like a Wall Street throwback: Men do the trading. Women do the marketing. Not a single investment employee is Black. But here’s something even more remarkable: none of this is so remarkable at all. This, after all, is the hedge fund industry, one of the most White-male-dominated businesses in the mostly White-male world of American finance. Like most hedge-fund firms, this one, Solus Alternative Asset Management of New York, declined to discuss its roughly 50-person workforce, or how and why it hires who it does. In fact, hard numbers are difficult to come by all across this hush-hush business — which tends to be how hedge funds like it.
Aurelius Group Slams J.C. Penney Sale, Prepares a Rival Bid (Bloomberg)
A group of J.C. Penney Co. debt holders including Mark Brodsky’s Aurelius Capital Management said it’s preparing a cash bid for the bankrupt retailer, saying that an existing offer “appears to grossly undervalue” the department store chain. In court papers filed Monday, the group — which holds some $162 million of J.C. Penney term loans — attacked the earlier bid from lenders led by H/2 Capital Partners as overly generous to the H/2 group at the expense of other creditors. Aurelius is known as one of the most aggressive and sometimes combative investors in distressed companies.
Hedge Funds Make Pandemic Bet on Insurance (Reuters)
LONDON (Reuters) – Five years after London-based hedge fund Toscafund ditched the shares it held in insurance companies, the $3.5 billion firm and its peers are flocking back, drawn by sharp premium increases which are lifting the sector’s post-coronavirus prospects. Insurers faced a surge in claims spanning trade credit to event cancellations as a result of the pandemic. Some have pulled out of unprofitable lines of business but for those who remain, the crisis has led to a steep rise in premiums, or a so-called “hardening” of the market, typical after a period of heavy losses.
BlueBay Adds Special Situations Lead to Leveraged Finance Team (Hedge Week)
Specialist fixed income manager, BlueBay Asset Management (BlueBay), has appointed Adam Phillips in a newly created role as Head of Developed Markets Special Situations. Based in London, Phillips reports to Mark Dowding, Chief Investment Officer (CIO) and will be responsible for building out BlueBay’s capabilities within stressed and distressed credit where he will be leading the launches of new special situations investment strategies that will be established in the coming months.