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.”
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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.
Ex-Fortress Partner Baer’s New Litigation Finance Vehicle Contingency Capital Pairs with Tetragon Fund Management Unit (Hedge Week)
TFG Asset Management, the alternative investment management unit of Tetragon led by Reade Griffith, is taking a minority stake in Contingency Capital, a new litigation finance-focused fund manager founded by ex-Fortress Investment Group partner and managing director Brandon Baer. Contingency Capital, a multi-product global asset manager which will sponsor and manage litigation finance-focused investment strategies, will formally launch on 1 November.
Ex-Context CEO Snatches Summit Venue (GreenStreet.com)
Conference organizer Ron Biscardi has staged something of a coup against former employer Context Capital. Working through a firm called iConnections that he founded in April, Biscardi has booked a conference for early 2022 at the Fontainebleau hotel in Miami Beach – the same timeframe and venue that Context has long claimed for the flagship gathering in its Context Summits series. That event has been the hedge fund industry’s largest in-person capital-introduction meeting, with some 2,600 people having attended the 2020 edition and the 2021 entry still on the calendar for now. Biscardi’s move, meanwhile, sends a clear signal that he plans to go head-to-head with Context.
Insider Selling of Palantir Technologies Stock Provides a Golden Buying Opportunity (MSN)
On Wednesday, Palantir Technologies (NYSE:PLTR) completed its long-awaited IPO. Things, however, didn’t go quite as planned. After an initial rise, PLTR stock dropped below $10, valuing the secretive data analytics company at $21 billion and frustrating many investors. But don’t be fooled: Palantir stock may still reward investors handsomely. Two weeks ago, I suggested that investors “back up the truck” if Palantir closed below $10.
Evoqua Water Technologies Corp (AQUA) President & CEO Ronald C Keating Sold $9 million of Shares (Guru Focus)
President & CEO of Evoqua Water Technologies Corp., Ronald C Keating, sold 405,888 shares of AQUA on 10/05/2020 at an average price of $22.06 a share. The total sale was $9 million. Evoqua Water Technologies Corp is a provider of mission critical water treatment solutions. It operates in three segments namely: Industrial, Municipal and Products. Evoqua Water Technologies Corp has a market cap of $2.67 billion; its shares were traded at around $22.80 with a P/E ratio of 33.06 and P/S ratio of 1.86.
Mountain Crest Acquisition Corp (MCACU) CEO Suying Liu Sold $4.4 million of Shares (Guru Focus)
CEO of Mountain Crest Acquisition Corp., Suying Liu, sold 1,757,942 shares of MCACU on 10/02/2020 at an average price of $2.53 a share. The total sale was $4.4 million.
The Chief Human Resources Officer of Coca-Cola European Partners is Exercising Options (Analyst Ratings)
Today it was reported that the Chief Human Resources Officer of Coca-Cola European Partners (CCEP), Nick Wall, exercised options to sell 7,840 CCEP shares for a total transaction value of $312.4K. Following Nick Wall’s last CCEP Sell transaction on March 30, 2020, the stock climbed by 3.2%. The company has a one-year high of $58.94 and a one-year low of $28.35. Currently, Coca-Cola European Partners has an average volume of 740.17K. CCEP’s market cap is $18.09 billion and the company has a P/E ratio of 23.40.
