Hedge Fund Oasis Buying Through Pandemic, Says Crisis Will Pass (Bloomberg)
Oasis Management Co. sees an opportunity to buy Japanese shares at “historically great prices,” thanks to the pandemic-fueled market selloff. Seth Fischer, the Hong Kong-based hedge fund’s founder and chief investment officer, said he’s been “a big buyer of certain securities,” while declining to identify them. In terms of sectors, he said real-estate companies have declined too much, while manufacturing businesses will eventually recover after facing a tough year or two.
Starboard Launches Proxy Fight at Commvault, Nominates Six to Board (Reuters)
BOSTON (Reuters) – Starboard Value has nominated six directors to the board at Commvault, setting the stage for a second battle in two years between the U.S. data protection and data management software company and an activist hedge fund. Starboard on Thursday told the company that it is nominating six people, including Jeffrey Smith, Starboard’s chief executive, and Gavin Molinelli, a co-portfolio manager at the firm. Commvault has 11 board members.
Mike Novogratz: Bitcoin Will Soon Be Bigger Than Gold (LiveBitcoinNews.com)
It’s no secret that Mike Novogratz – a former hedge fund manager – has always been a big fan of bitcoin. When everyone else has lost faith, he’s always there to tout it and remind us of just how special it is. Mike Novogratz Is Betting Big on Bitcoin: Now, he’s claiming bitcoin is about to make a huge leap. On Twitter, he writes: I’ll make a bet for dinner anywhere in New York City that bitcoin outperforms both [gold and treasuries] over the next three months, and I like gold… Give it a few months. It’s a very bold prediction to make considering how strangely bitcoin has been behaving over the past several weeks.
Another Tail Risk Hedge Fund Had Eye-Popping Returns in March (Bloomberg)
A California hedge fund run by a Pacific Investment Management Co. veteran gained 10-fold in March, rewarding investors who bought its “tail risk” protection against a market collapse. LongTail Alpha’s OneTail Hedgehog Fund II had a return on invested premium of 929% last month as the S&P 500 dropped more than 12%, according to an April 3 letter to clients obtained by Bloomberg. Including client cash held in reserve, the fund returned 157% in March and 400% since its inception Feb. 1. A spokesman for LongTail Alpha declined to comment on the letter or its contents.
Bridgewater’s Big Options Bet Helps Limit Losses (Bloomberg)
A significant options bet by Bridgewater Associates that would pay out if the stock market declined before late March has made billions for the world’s largest hedge-fund firm, helping to offset broader losses last quarter. In a quarterly update to clients this week, Bridgewater said its event risk fund reduced losses by about 10% and 30% in the quarter for its Pure Alpha II and Pure Alpha Major Markets II funds. The former is a more leveraged version of its flagship hedge fund Pure Alpha, while the latter is a more leveraged…
Hedge Funds ‘Raking in Billions’ During Coronavirus Crisis (The Guardian)
Hedge funds have been accused of raking in billions from market bets during the coronavirus crisis while care workers in high-risk environments can barely scrape by. Frances O’Grady, general secretary of the TUC trade union body, launched a stinging attack on hedge fund managers on Thursday after it was revealed one London hedge fund had made £2.4bn betting on market moves as investors panicked over a global economic shutdown.