U.S. House Advances Bills to Address Archegos, GameStop Turmoil (Reuters)
WASHINGTON (Reuters) – Wealthy families that set up investment funds known as “family offices” to manage their personal wealth would face stricter oversight from U.S. regulators under a bill advanced by a U.S. congressional panel late on Thursday. The bill was among 11 that lawmakers hope will address failings highlighted by March’s meltdown of family office Archegos Capital which led to billions of dollars in losses for some banks and January’s GameStop saga.
Steve Cohen’s First Trade Deadline as Mets Owner has High Stakes (News Day)
At 4 p.m. on Friday, Mets owner Steve Cohen will have his eye on the clock for two reasons: The closing bell on Wall Street. And baseball’s trade deadline. It’s a delicious coincidence for the rookie owner’s first trade deadline. The closing bell? Cohen has faced that thousands of times. You know the billionaire hedge fund titan has no fear about moving millions of dollars around with the touch of a button or a wink to a subordinate. It’s what he does for a living.
It’s Open Season on Closed-End Fund Activists. How Fund Holders Can Win – and Lose. (Barron’s)
The Templeton Global Income fund frustrated investors for years. Despite star manager Michael Hasenstab at the helm, the closed-end fund returned an average of 0.3% annually in the past decade, versus an average 7% for peers in global income. Also frustrating, its shares rarely traded close to the fund’s underlying net asset value, or NAV. The discount averaged 11% in the past three years. nvestors have caught a break, however, thanks to Saba Capital Management, a hedge fund shop run by activist investor Boaz Weinstein.
Hedge Funds Sell Single Stocks And Buy Equity ETFs In June (Forbes)
In June, hedge funds sold stocks in most parts of the world, but they bought stocks in Europe. North American hedge funds were small net sellers of stocks, and long/ short equity funds drove the bulk of the selling, according to data from Morgan Stanley. The firm also found that the buying in Europe was the highest since February as long/ short equity and quant funds drove most of the buying.
Fund Manager Nursing Loss in China Stocks Says He Made ‘Mistake’ (Bloomberg)
The founder of Hong Kong’s Brilliance Asset Management Ltd. said he made a mistake in underestimating the impact of Beijing’s reforms in the education sector, but struck an optimistic note about two players in an industry many are writing off. Shi Lin’s Brilliance has invested in the sector, which saw its fortunes plummet after China unexpectedly banned certain after-school tutoring companies from making profits, going public and hosting classes on weekends and holidays.