Marshall Wace Shorts London’s Latest Big IPO (Financial News)
One of the largest IPOs in London this year is already facing pressure from short-sellers, less than a month after it made its debut on the London Stock Exchange. Hedge fund Marshall Wace disclosed a 0.5% short position on cross-border payments and foreign exchange provider CAB Payments on 24 July, according to data from analytics firm Breakout Point.
Hedonova Navigates the Future of Alternative Investment in UAE (Khaleej Times)
Hedonova, a US-based hedge fund, is strengthening its UAE portfolio as it navigates the promising future of alternative investments in the GCC market. As a premium hedge fund that specialises in alternative investments, Hedonova’s team affirms that the future of alternative as well as sustainable investments in the UAE holds great potential. The up-and-coming hedge fund in the region is keen on providing appealing, lucrative opportunities for those seeking higher yields and portfolio stability.
Citadel Securities’ Revenue Drops 35% Amid Lower Market Volatility; Ken Griffin Braces for U.S. Recession (The Street)
Citadel Securities, the market-making division of Citadel, experienced a 35% decline in net trading revenue in the first half of 2023 compared to the previous year. The company’s strong performance last year was fueled by increased market volatility, but calmer market conditions this year led to a drop in revenue. Ken Griffin, the manager of Citadel’s hedge fund, is preparing for a potential U.S. recession and has been focusing on a high-yield credit market strategy.
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Distressed Focused Hedge Funds Vie for Discounted REIT Shares (Propmodo.com)
There hasn’t been a wave of bargain-basement deals in commercial real estate, but there certainly has been some discounting of valuations of publicly traded REITS. Now top hedge fund managers that focus on distressed investing are competing to acquire shares of struggling REITs. A prime example involves D.E. Shaw, Flat Footed, H/2 Capital Partners, and Lonestar Capital, which joined forces to acquire one-fifth of the shares of healthcare REIT Diversified Healthcare Trust earlier this year. Later, the management team behind Diversified Healthcare revealed its intent to merge the healthcare REIT with a struggling office REIT, news that led the hedge fund investors to cry foul, claiming such a move would decimate the value of their investment.
Hedge Fund Point72 Adds Portfolio Managers in New York, London (eFinancialCareers.com)
Hedge funds have been adding people like crazy this year, and funds both big and small have been joining in on the action. Point72 is one of the bigger ones – and we’ve spotted it adding at least two new portfolio managers around the world this month. Siddharth Mehla joined the fund this month in New York from a 17-year career with Barclays in the city. He was an options trader for the bank, and part of its 2019 class of managing directors. Mehla is a graduate of a highly in-demand Indian Institution of Technology, which other trading firms scope out interns from.
Omaha-Based Union Pacific Hires CEO that Hedge Fund Suggested (Omaha.com)
Union Pacific hired the CEO Wednesday that a hedge fund pressuring the railroad to improve recommended earlier this year, and it cut its outlook after reporting disappointing results driven by weakening consumer demand. The Omaha-based railroad said Jim Vena, its former chief operating officer, will take over as CEO next month. The Soroban Capital Partners hedge fund that holds a $1.6 billion stake in Union Pacific had been urging the railroad to hire Vena because of his expertise in streamlining operations.
This Year’s Winning Hedge Fund Formula Doesn’t Hedge (Institutional Investor)
Here’s another reminder about the dangers of shorting in a surging stock market. A number of tech-heavy hedge funds are off to strong starts this year as they try to work off huge losses from the previous two years. But the stars of the show at several of these firms are their long-only funds, which are not only outperforming the hedge funds but are in some cases more than doubling the broader market’s gains.
UBS to Pay Nearly $400 Million Over Failed Hedge Fund Archegos (Barron’s)
UBS has agreed to pay nearly $400 million to settle global banking regulators’ allegations of misconduct relating to the failed hedge fund Archegos Capital Management. The fund, which had been heavily financed by Credit Suisse, the distressed bank UBS agreed to purchase earlier this year, collapsed in 2021, causing losses of around $5.5 billion for Credit Suisse, regulators said.
South Korea Looking to Reverse Elliott Compensation Award (Hedge Week)
Elliott Investment Management‘s long-running dispute with the South Korean government still has someway to go after Justice Minister Han Dong-hoon revealed a new law suit aimed at reversing a decision by an international tribunal to award the US hedge fund $108m in damages, according to a report by The Korea Herald. The dispute centres on the controversial 2015 merger of two Samsung Group affiliates, Samsung C&T and Cheil Industries, which led to Elliott – a minority stakeholder in Samsung C&T – suing the Korean government in 2018 for pressuring a state-run pension scheme to vote in favour of the deal.
Wednesday 7/26 Insider Buying Report: FRD, CULP (Nasdaq.com)
On Tuesday, Friedman Industries’ Director, Durga D. Agrawal, made a $81,600 purchase of FRD, buying 5,000 shares at a cost of $16.32 each. So far Agrawal is in the green, up about 1.4% on their purchase based on today’s trading high of $16.55. Friedman Industries is trading up about 1.2% on the day Wednesday. Before this latest buy, Agrawal made one other purchase in the past twelve months, buying $59,760 shares at a cost of $7.47 each. And at Culp, there was insider buying on Friday, by Director John Allen Baugh who bought 4,500 shares for a cost of $5.50 each, for a trade totaling $24,750. Before this latest buy, Baugh purchased CULP on 2 other occasions during the past twelve months, for a total investment of $26,120 at an average of $5.15 per share. Culp is trading trading flat on the day Wednesday. Baugh was up about 2.0% on the purchase at the high point of today’s trading session, with CULP trading as high as $5.61 in trading on Wednesday.
Bank of America, Bank of New York Mellon And 2 Other Stocks Insiders Are Selling (Benzinga)
Bank of America: The Trade: Bank of America Corporation (BAC) President, Regional Banking Dean C Athanasia sold a total of 77,806 shares at an average price of $31.49. The insider received around $2.45 million from selling those shares. Gilead Sciences: The Trade: Gilead Sciences, Inc. (GILD) CFO Andrew D Dickinson sold a total of 5,000 shares at an average price of $80.00. The insider received around $ $400,000 from selling those shares.
