Bridgewater’s Risk-Parity Shift Jolts a $400 Billion Quant Trade (Bloomberg)
The $400 billion corner of quant investing known as risk parity has a history of doubt and division, and Bridgewater Associates has started a new chapter. Ray Dalio’s $138 billion asset manager has tweaked its version of the strategy by moving into alternatives to conventional bonds as yields hit historic lows, a person familiar with the matter has confirmed. The shift, telegraphed by the firm in a July report, drives a new wedge between Bridgewater and risk-parity purists and speaks directly to concerns that have long dogged the systematic investing approach.
Point72, the firm Investing Hedge Fund Mogul Steven A Cohen’s Personal Wealth, Gets into Healthcare (MSN)
Point72 Ventures, the early stage investment firm that’s now solely investing the personal wealth of the multi-billionaire hedge fund magnate Steven A. Cohen, is getting into healthcare investing. The firm has hired Scott Barclay, a former partner at the life sciences and frontier technology investment firm, DCVC, to run its new healthcare practice. Since the investment firm is more like a family office than a traditional fund with limited partners, it’s hard to gauge the size of the firm’s commitment to healthcare — even from its partners. But a back of the envelope calculation should see the firm committing roughly $300 million to its healthcare efforts, according to Point72 Ventures managing partner, Matthew Granade.
Millionaire Boris Johnson Backer Criticises Politicians for ‘Unwillingness’ to Allow a Recession (TheNewEuropean.co.uk)
Millionaire hedge fund manager Crispin Odey has criticised politicians for an ‘unwillingness’ to allow a recession, claiming the government had spent too much on the response to the coronavirus pandemic. Odey said the combined costs – estimated at around £350 billion – was too high for a spend on preventative action, suggesting that a figure of £12.5 billion was more appropriate, even if the death toll rocketed to 500,000 people.
Former HSBC UK Funds Chief Goes to EdenTree (FNLondon.com)
Andy Clark, the former UK chief executive of HSBC Global Asset Management, has been recruited to lead the Church-affiliated ethical fund manager EdenTree. Clark will join on 14 September, the firm said in a statement on 2 September, taking the reins from Sue Round, the firm’s deputy chair who has been filling in as CEO. Round is also one of the UK’s longest-serving fund managers, having helmed EdenTree’s Amity UK fund for 32 years.
Warren Buffett’s Berkshire Hathaway has Made Almost $100 billion on Apple Thanks to its Record Stock Rally (Business Insider)
Warren Buffett‘s Berkshire Hathaway has made almost $100 billion from its Apple investment in less than five years. The famed investor’s conglomerate owns around 981 million Apple shares following the four-for-one stock split, giving it a roughly 5.7% stake in the tech titan. Those shares were worth about $132 billion at the close of trading on Tuesday, and Berkshire spent about $35 billion to build the position between 2016 and 2018, meaning it has scored a $97 billion gain – close to three times its initial investment.
Marble Ridge Swaps Counsel in Neiman Marcus Bankruptcy (Reuters)
Marble Ridge and its founder Dan Kamensky have brought in new lawyers to represent them in the Neiman Marcus bankruptcy as they deal with the aftermath of Kamensky’s interference with a potential bid for certain of the luxury retailer’s assets. The hedge fund, which has announced plans to wind down operations in light of Kamensky’s actions, brought in Foley & Lardner to replace bankruptcy boutique Parkins Lee & Rubio, according to court papers filed in Houston bankruptcy court on Monday. Kamensky has retained Haynes and Boone, which will also replace Parkins, according to Monday’s court papers.