Meet the Ray Dalio of Sweden (Hedge Nordic)
Stockholm (HedgeNordic) – Talk of paradigms and paradigm shifts has become more commonplace on the investment arena thanks to Ray Dalio. But what exactly is a paradigm shift? Alexander Hyll, a former financial engineer at Dalio’s Bridgewater Associates and the founder of a Linköping-based paradigm-focused long/short equity fund, defines a paradigm as a cause-effect relationship affecting market behavior and asset prices. “We believe that the economy works like a machine, in so far that a certain stimulus or contraction has a given foreseeable effect,” explains Hyll.
Warren Buffett’s Apple Bet could Disappoint Over the Next Decade, New Study Suggests (Business Insider)
Warren Buffett‘s Apple shares could disappoint in the coming years, according to new research showing the most valuable stocks typically underperform after reaching the top of the market. Dimensional Fund Advisors analyzed the largest 10 US stocks at the start of each decade since 1930. The asset manager found that on average, they outperformed the market by just 0.7% on an annualized basis over the next three years. Moreover, they underperformed by 1.1% over five years and 1.5% over 10 years.
Legend Capital Racks Up $500m for the Eighth Fund (Opalesque.com)
Chinese venture capital and private equity fund manager Legend Capital (LC) has closed its eighth fund – LC Fund VIII – at a hard cap of $500 million. LC Fund VIII received strong support from existing LPs and has further diversified its investor base, securing commitments from institutional investors in the Middle East, Europe, and Asia including sovereign wealth funds, private pension funds, corporate investment funds, and family offices. Founded in 2001, Legend Capital, a brand being supported by its strategic partner, Legend Holdings, currently operates from five offices in Beijing, Shanghai, Shenzhen, Hong Kong, and Seoul, with Beijing as its headquarters.
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Hedge Fund Kadima Sun Investments Selects Tier1 to Optimize Investor Relationships (TMCNet.com)
TORONTO and NEW YORK, Oct. 21, 2020 /PRNewswire/ — Tier1 Financial Solutions (“Tier1”), a leading client relationship management (“CRM”) technology provider for capital markets and banking, has gone live with hedge fund Kadima Sun Investments (KSI), demonstrating the versatility and ingenuity of Tier1’s CRM platform across the full spectrum of capital markets and banking participants. The deployment is enabling Kadima Sun Investments to more impactfully and efficiently pitch the firm’s unique investment strategy to potential investors. Tier1’s cloud-based software is empowering Kadima Sun to uncover new business opportunities by providing a more streamlined, efficient and unified view for increasing outreach, sharing information and tracking interactions with key prospects, while minimizing the misplacement of information.
Hedge Funds Shunned on Principle by $20 Billion ESG Manager (Bloomberg)
A pension firm in Denmark that has a reputation for enforcing some of Europe’s toughest ethical investing standards says it won’t do business with hedge funds. Anders Schelde, the chief investment officer of AkademikerPension, says the external allocations the $20 billion investor makes exclude hedge funds because “I don’t think they create the value they say they do.”
Top Canadian Hedge Fund Returns 16% Over 10 Years (InvestmentExecutive.com)
Toronto-based GFI Investment Counsel Ltd. was recognized as having Canada’s best overall hedge fund for the second year in a row on Tuesday at the Alternative IQ 2020 Canadian Hedge Fund Awards. The GFI Good Opportunities Fund, which focuses on 10 to 15 core holdings and uses short strategies, received the best overall award based on its combined 10-year annualized return and 10-year Sharpe ratio, which measures risk-adjusted return. The fund returned 16.04% over 10 years, with a 10-year Sharpe ratio of 1.35.
Investor interest in hedge funds grows as quarterly inflows surge between July and September (Hedge Week)
Investor confidence in hedge funds appears to be on the rise, with allocators pouring in some USD13 billion between July and September, the first quarterly net inflow into the industry in two-and-a-half years. New data published by Hedge Fund Research shows the industry on the whole drew positive net inflows for the first time since Q1 2018, with third quarter allocations – dominated by macro and relative value strategies – bringing the total amount of industry capital globally to some USD3.31 trillion. HFR president Kenneth Heinz said the pick-up in inflows was driven both by defensive outperformance by hedge funds through the coronavirus-driven volatility in early 2020, as well as opportunistic gains through the uneven financial market recovery in the second and third quarters.
Spinoff Concludes Paulson & Co. Conversion (GreenStreet.com)
Paulson & Co. partner Andrew Klaber has spun off from the firm. Klaber’s Bedford Ridge Capital launched Oct. 1, taking with it some $280 million of assets. And the private equity-focused operation already is setting out to raise additional capital. For Paulson & Co., the separation completes a transformation into a family office for founder John Paulson. That process began in 2019, marking a dramatic shift for a multi-strategy operation that rose to prominence when it netted some $15 billion on short sales of subprime mortgage bonds during the 2007-2008 financial crisis.
Sale of Mets to Steve Cohen Received 1 No Vote from MLB’s Ownership Committee (NJ.com)
Not everyone is on board with billionaire hedge fund manager Steve Cohen buying the New York Mets. Yes, the transaction received approval from MLB’s ownership committee. But it wasn’t a unanimous vote according to the New York Daily News, which reports “the lone no vote came from White Sox chairman Jerry Reinsdorf.”
Salesforce.com Inc (CRM) Chair of the Board & CEO Marc Benioff Sold $3.9 million of Shares (Guru Focus)
Chair of the Board & CEO of Salesforce.com Inc, Marc Benioff, sold 15,000 shares of CRM on 10/20/2020 at an average price of $256.77 a share. The total sale was $3.9 million. Salesforce.com Inc is a software-as-a-service company that provides enterprise cloud computing solutions, offering social and mobile cloud apps and platform services, as well as professional services to facilitate the adoption of its solutions.
Apollo Board Panel to Review Leon Black’s Ties With Jeffrey Epstein (The Wall Street Journal)
A group of Apollo Global Management Inc.’s independent board members will review Chief Executive Leon Black’s relationship with disgraced financier Jeffrey Epstein, according to people familiar with the matter. At a regularly scheduled meeting Tuesday morning, Mr. Black requested that the board’s conflict-committee members, which include Michael E. Ducey, A.B. Krongard and Pauline Richards, hire a law firm to examine his business dealings with Mr. Epstein, the people said. The committee interviewed a number of firms and selected Dechert LLP on Tuesday afternoon.
Dismissing Hedge Funds on Principle (Hedge Nordic)
Stockholm (HedgeNordic) – High fees and unsatisfactory performance may have driven away some pension funds from the hedge fund industry. One Danish pension fund has turned away from hedge funds because they do not create sufficient value for the fees they charge. Anders Schelde, the chief investment officer of AkademikerPension, tells Bloomberg that the pension fund excludes hedge funds from its external allocations because “I don’t think they create the value they say they do.” The hedge fund industry has both good and bad money managers, with the industry having a considerable heterogeneity of strategies, risk-return profiles and track records. For that reason, rigorous manager selection and due diligence are essential to identify and select the best hedge fund managers.
Blank-Check Company Deals Driven by Speculation, Chanos Says (Bloomberg)
The surge in blank-check company deals is a sign of unfettered speculation and investors may see lackluster returns from these offerings, legendary short-seller Jim Chanos said. “We are going to blow through the records of 1999 and 2000 in terms of new issuance,” Chanos said at Grant’s Interest Rate Observer’s fall conference on Tuesday. “We are now seeing speculation in all its glory come back.” Chanos, the founder of hedge fund Kynikos Associates Ltd., said “academic work has showed us that the return of special purpose acquisition companies is not only bad relative to the stock market, it’s even worse than initial public offerings. That hasn’t stopped people from getting excited and throwing money.”
The President & Chief Executive Officer of BELLUS Health (NASDAQ: BLU) is Buying Shares (Analyst Ratings)
Today, the President & Chief Executive Officer of BELLUS Health (BLU), Roberto Bellini, bought shares of BLU for $98.18K. Following this transaction Roberto Bellini’s holding in the company was increased by 7% to a total of $1.51 million. The company has a one-year high of $12.03 and a one-year low of $2.01.
Tilray Inc (TLRY) President and CEO Brendan Kennedy Sold $2.2 million of Shares (Guru Focus)
President and CEO of Tilray Inc, Brendan Kennedy, sold 400,000 shares of TLRY on 10/16/2020 at an average price of $5.6 a share. The total sale was $2.2 million. Tilray Inc has a market cap of $834.040 million; its shares were traded at around $6.26 with and P/S ratio of 3.42. GuruFocus has detected 4 severe warning signs with Tilray Inc.
