Brevan Howard, DRW Back Fintech Firm Set to Manage Brevan Fund (Bloomberg)
Brevan Howard Asset Management, the $16 billion hedge fund, and quantitative trading group DRW Holdings are buying a minority stake in fintech firm Edge Focus Partners in a bet that consumer lending will continue to expand beyond banks. As part of the transaction, Edge Focus, whose models use machine learning to predict credit-default risk, will run a fund for Brevan Howard that will purchase short- and medium-term loans from lending platforms and other financial institutions.
Hedge Fund Executive Buys New Palm Beach Mansion for $30.7M (Biz Journals)
Jason Capello, the head of hedge fund Mgate Capital, paid $30.72 million for a new mansion in Palm Beach. The 8,981-square-foot home at 1404 N. Lake Way was sold by 1404 Northlake LLC, managed by real estate investor George P. Taylor and Nedim Soylemez in Palm Beach. The price equated to $3,421 per square foot. The home was built on a 0.55-acre lot along the Intracoastal Waterway. The developer bought the land for $8.9 million in 2018.
Elliott Under Fire — Deutsche Poaches BNP Exec — SoftBank’s Miami Digs (Business Insider)
Welcome to Insider Finance. If this was forwarded to you, sign up here. Plus, download Insider’s app for news on the go – click here for iOS and here for Android. On the agenda today: Union groups take aim at activist hedge fund Elliott Management. Deutsche Bank poaches distressed vet from BNP Paribas. SoftBank’s close to inking a new office in Miami. Let’s get started.
Photo by Austin Distel on Unsplash
Saba, Redwood Are Among Credit Funds Buying Evergrande Bonds (Bloomberg)
Saba Capital Management, Redwood Capital Management, Contrarian Capital Management and Silver Point Capital are among funds that have built positions in offshore bonds of China Evergrande Group’s ahead of a likely default of the real estate giant. The four investors are among the credit funds that took a position in Evergrande’s $19 billion dollar-denominated notes in recent weeks, as prices fell to about 25% of face value amid uncertainties over the future of China’s second largest developer, according to people with knowledge of the matter who asked not to be identified because the transactions are private.
Norron Embraces the EU Taxonomy (Hedge Nordic)
Stockholm (HedgeNordic) – For almost a year, three of Norron Asset Management’s funds have been reporting the alignment with the EU Taxonomy, a classification system for sustainable economic activities that aims to drive capital flows to sustainable investments. Norron has announced that its entire range of six funds – two fixed-income funds, two hedge funds and two long-only equity funds – is reporting the alignment with the EU Taxonomy. “Now we have the pleasure to announce that we report all of Norron’s funds in accordance with the Taxonomy.”
Man GLG Unveils New Global Sustainability-Focused Long/Short Hedge Fund (Hedge Week)
Man GLG, the discretionary investing unit of London-listed global alternative investment giant Man Group, has launched a new sustainability-focused long/short equity hedge fund which will trade across regions and sectors with a positive ESG bias. The Man GLG RI Global Sustainable Growth Alternative UCITS strategy – which is classified as an Article 8 product under the EU’s Sustainable Finance Disclosures Regulation (SFDR) – is targeting absolute returns. It takes a positive ESG bias in global markets, combining a high-conviction long portfolio of 25-45 stocks with a short book designed to hedge market and factor risk. The short portfolio also aims to boost the alpha generation of the long positions.
Dalio Says Evergrande ‘Manageable’ Even as Investors Stung (Bloomberg)
China Evergrande Group’s debt crisis “is all manageable” even as lenders are hurt by the property developer’s troubles, Ray Dalio said. “Investors will be stung — that’s how it works,” Dalio, the founder of hedge fund Bridgewater Associates, said in an interview Tuesday with Tom Keene on Bloomberg Television. “The system will be protected because it’s denominated in its own currency.”
Hines, Korean Pension Fund Bet Big on San Francisco Comeback (The Wall Street Journal)
Real-estate developer Hines Interests LP and a South Korean pension fund are planning a $2.5 billion-plus office and apartment project in San Francisco, a vote of confidence in one of the markets most upended by the pandemic. Hines and the National Pension Service of Korea on Friday bought PG&E Corp.’s office campus for $800 million, the developer said. They plan to redevelop the site’s two office buildings and build a Foster + Partners-designed tower with around 600 rental…
Warren Buffett Likely Took a $5 Billion Hit on Just 5 Stocks During Monday’s Slump (Business Insider)
Warren Buffett likely took a $5 billion hit across only five stocks on Monday, as investors dumped equities in response to the news that Chinese real estate developer Evergrande could default on up to $300 billion of debt. Buffett’s Berkshire Hathaway saw $2.8 billion wiped off the value of its Apple stake, as the iPhone maker’s stock price slid 2% on Monday. The market downturn cut Bank of America’s stock price by 3%, erasing $1.3 billion from Berkshire’s position in the lender. Berkshire’s American Express, Coca-Cola, and Kraft Heinz stakes also dropped in value by a combined $800 million.
Why Hedge Funds Are Increasingly Turning To The Private Markets For Returns (Forbes)
Traditionally, hedge funds stuck to the public market when it came to their allocations, but a new study from Goldman GS 0.0% Sachs suggests that is changing. The firm reviewed more than 100 hedge fund managers with exposure to the private markets during the second quarter. Hedge funds dive into the private markets: Goldman Sachs notes that in the past, the capital formation process for companies has been pretty clear, with each stage having its own set of funders. Meanwhile, hedge funds focused on the public markets.
Quantitative Risk Analyst – Hedge Fund (eFinancialCareers)
A prestigious multi-strategy Hedge Fund based in New York City is seeking a Quantitative Market Risk Analyst to join their team. This is an opportunity to utilize sophisticated financial models and develop expertise in the valuation and analysis of complex financial instruments (equities, credit derivatives, CLO’s, swaps, bonds).
Tuesday 9/21 Insider Buying Report: VICI, HLF (Nasdaq.com)
On Friday, VICI Properties’ Director, James R. Abrahamson, made a $228,625 buy of VICI, purchasing 7,750 shares at a cost of $29.50 each. So far Abrahamson is in the green, up about 1.4% on their purchase based on today’s trading high of $29.90. VICI Properties is trading up about 0.4% on the day Tuesday. Before this latest buy, Abrahamson purchased VICI at 2 other times during the past twelve months, for a total cost of $495,024 at an average of $27.05 per share. And at Herbalife Nutrition, there was insider buying on Friday, by CEO John O. Agwunobi who bought 5,000 shares for a cost of $44.90 each, for a trade totaling $224,516. Before this latest buy, Agwunobi made one other buy in the past twelve months, purchasing $250,565 shares for a cost of $48.19 each. Herbalife Nutrition is trading up about 0.2% on the day Tuesday.
A Director at Marten Transport (NASDAQ: MRTN) is Buying Shares (Analyst Ratings)
Today, a Director at Marten Transport (MRTN), Jerry Bauer, bought shares of MRTN for $226.1K. Following this transaction Jerry Bauer’s holding in the company was increased by 12.3% to a total of $2.07 million. Based on Marten Transport’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $232 million and quarterly net profit of $21.42 million. In comparison, last year the company earned revenue of $212 million and had a net profit of $18.13 million. Currently, Marten Transport has an average volume of 300.68K. MRTN’s market cap is $1.25 billion and the company has a P/E ratio of 16.10.
