Marshall Wace Long-Short Fund Reports Record Loss (Bloomberg)
A Marshall Wace hedge fund that bets on rising and falling stocks slumped to a record loss in January, as the U.S. market was shaken by a short squeeze driven by retail investors. The $4.4 billion MW Global Opportunities Fund fell by an estimated 7%, the biggest monthly decline since it started in 2009, according to an investor letter seen by Bloomberg. That compares with an average loss of 5.9% for a group of long-short hedge funds tracked by Goldman Sachs Group Inc., and a drop of about 1% for the S&P 500.
Steve Cohen’s Point72 Raises $1.5 billion After Supporting Melvin Capital During the GameStop Saga, Report Says (Business Insider)
Steve Cohen‘s hedge fund Point72 has raised $1.5 billion after suffering heavy losses in January and providing a lifeline to Melvin Capital, as short-sellers were hit by the GameStop saga, according to a report in Bloomberg and other outlets. Point72 Asset Management, which is run by New York Mets-owner Cohen, lost around 9% in January, Bloomberg reported.
Scaramucci on GameStop: ‘My Heart is with the People; My Mallet is with Steve Cohen’ (Fortune)
Anthony Scaramucci is torn—fiscally, emotionally. The founder and managing director of SkyBridge Capital, a New York City firm specializing in hedge fund investments, says the recent stock market drama centering on GameStop pit his sentiments against his economic interest. Last week, retail investors burst out of the online Reddit forum r/WallStreetBets to bid up shares of GameStop, the beleaguered video game retailer and shopping mall fixture. The unexpected, overwhelming interest caught hedge funds off guard, forcing ones who had sold the corporate laggard’s shares “short” into a perilous, bankruptcy-grazing “short squeeze.”
Hedge Fund Manager Klabin Sets Up New Shop at 512 West 22nd Street (Commercial Observer)
Hedge fund manager Alexander Klabin, who co-founded the $6.9 billion firm Senator Investment Group but left last year, will set up his new shop at 512 West 22nd Street, Commercial Observer has learned. Klabin’s Ancient LP signed a five-year deal for 68,000 square feet on a portion of the fifth floor of Vornado Realty Trust’s 11-story building near the High Line, according to a source with knowledge of the deal. Asking rent was $120 per square foot.
Hedge-Fund Manager Ackman Raises Bet on Housing in Texas, Hawaii, Las Vegas (The Wall Street Journal)
Billionaire hedge-fund manager William Ackman is raising his bet that the migration of Americans to warmer, lower-tax cities is here to stay. His Pershing Square Capital Management LP recently increased its stake in Howard Hughes Corp. to nearly 25%. The Houston-based developer is ramping up construction of multifamily housing in Texas, Maryland, Hawaii and Las Vegas.
Multi-Strategy Hedge Fund Brummer Dips into Negative Territory, as Poor Short Alpha Drives January Equity Losses (Hedge Fund)
Stockholm-based hedge fund manager Brummer & Partners saw its flagship multi-strategy fund dip slightly into negative territory last month. The Brummer Multi-Strategy (BMS) vehicle slipped 0.8 per cent in its SEK class, and 0.9 per cent in the USD class, in January, while the twice-levered Brummer Multi-Strategy 2xL version of the fund lost 1.7 per cent in both SEK and USD tranches. Brummer said on Wednesday that equities and bond yields ticked upwards in early January, buoyed by the prospect of further stimulus from the new Biden administration – but appetite soon soured in the second half of the month as stimulus hopes faded, and governments wrestled with vaccine supplies and renewed Covid-19 restrictions.