Bridgewater’s Ray Dalio Expects Stocks to Fall 20% if Rates Rise to 4.5% (Reuters)
Sept 15 (Reuters) – Billionaire Ray Dalio, founder of one of the world’s biggest hedge funds, has predicted a sharp plunge in stock markets as the U.S. Federal Reserve raises interest rates aggressively to tame inflation. “I estimate that a rise in rates from where they are to about 4.5 percent will produce about a 20 percent negative impact on equity prices,” Bridgewater Associates‘ founder Dalio wrote in a LinkedIn post on Tuesday.
Glen Point CIO, Founder Charged With FX Manipulation, Fraud (AI-CIO.com)
The co-founder and CIO of a U.K.-based hedge fund has been charged in Manhattan federal court with manipulating exchange rates to fraudulently trigger a $20 million payment under a barrier options contract. According to an unsealed indictment, Neil Phillips, the co-founder and CIO of Glen Point Capital, allegedly manipulated the exchange rate between the dollar and the South African rand to unlawfully obtain millions of dollars in payments for his hedge fund under an options contract.
2022 – A Trading Year for Svelland (Hedge Nordic)
Stockholm (HedgeNordic) – You’ll probably have a hard time guessing the top performing Nordic hedge fund over the last years. Nope, not that one. And not that one either. The top performing fund in the Nordic hedge fund universe over the past five years is Svelland Capital’s Svelland Global Trading Fund run by Norwegian Tor A. Svelland, who launched the London-based commodity-focused manager in 2016. Svelland started his career in the shipping sector and later worked as Head of Freight Derivatives at Oslo-based Carnegie, Head of Commodities at Pareto Securities, and Proprietary Trader in commodities and freight at Goldman Sachs, and then at Trafigura. He then decided to set up his own hedge fund Svelland Global Trading Fund to exploit investment opportunities in commodity and related markets.
Source: pexels
U.S. Tech-focused Hedge Funds Brace For Heavy Losses Amid Market Slide (International Business Times)
U.S. hedge funds that focus broadly on technology investments are bracing for heavy losses this year as gloomier economic data sparked a fresh selloff this week, shrinking hopes of clawing back any significant ground in coming months. For fund managers, including those gathered at one of the industry’s biggest conferences in New York, any optimism from last week’s market rally was sapped by a fresh sucker punch on Tuesday as the S&P 500 slid 4.3%. Many funds were already sitting on declines of 30% or more.
Hedge Fund Industry Faces Consolidation as Performance Wanes (Opalesque.com)
The hedge fund industry could be headed for a major consolidation, according to panelists at the SALT Conference, which just wrapped up in New York. Significant asset outflows driven by underperformance are putting pressure on even well established funds. As a result, the war for talent is heating up. Ilana D. Weinstein, Founder & Chief Executive Officer at executive search firm The IDW Group said that the hedge fund industry is in the “early innings of an industry correction and consolidation.” She argues that much of what is left at many large hedge funds is founder capital. For these funds to rebound, performance will have to significantly improve which could take years.
