Successful With Chinese Startups, Sequoia China Launches a Hedge Fund (The Wall Street Journal)
HONG KONG – Venture capitalist Neil Shen’s Sequoia Capital China is setting up a hedge-fund business to leverage its record of choosing winners in Chinese technology. In August the firm launched the U.S.-dollar-denominated Sequoia Capital Equity Partners fund with initial capital of more than $300 million from investors, according to people familiar with the matter and filings with the U.S. Securities and Exchange Commission. It plans to invest in publicly traded stocks globally, the people said.
Citadel Securities’ David Silber Says Stop Blaming Options (Bloomberg)
While burgeoning interest in options has been a big feature of the summer stock market, it isn’t the only reason equities surged or sold off, according to David Silber, head of institutional equity derivatives at Citadel Securities. Yes, increased retail trading, along with separate buying by large institutions, contributed to swings in Nasdaq 100 shares — whipping up volatility as dealers hedged against options price drift known as “gamma.”
India’s Zomato Raises $160 million from Tiger Global, Temasek Unit (Reuters)
BENGALURU (Reuters) – Indian food delivery company Zomato has raised $160 million from U.S. hedge fund Tiger Global Management LLC and a unit of Singapore’s Temasek Holdings, its top shareholder Info Edge (India) Ltd (INED.NS) said in a filing on Thursday.
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Hedge Funds at Sohn Make Bullish Bets on Long-Term Asian Growth (Bloomberg)
Hedge fund gurus are betting on the longer-term growth in Asia, picking winners from India to Japan and China as they look past market volatility brought on by Covid-19. Money managers at this year’s Sohn Hong Kong Investment Leaders Conference touted a slew of bullish strategies for Asia, with changes in consumption offering particularly good opportunities, the fund managers said.
Rookie Fund. Senior Team. (Hedge Nordic)
Stockholm (HedgeNordic) – In May of last year, Sweden’s oldest hedge fund – Nektar – closed its doors after 21 years. Some of Nektar’s team led by Martin Larsén, Anders Augusén and Johanna Ahlgren got back together to launch a new fund – Frost – that would run one of Nektar’s successful sub-strategies. “The fixed-income trading at Nektar performed well over the years, and Anders and I did not see any reasons not to continue that going forward,” Larsén tells HedgeNordic. Three tech-savvy quants and a tech-savvy person on the operations side joined the trio right from Frost’s launch at the beginning of 2020.
Brevan Howard Ramps Up Business Development Effort with Quartet of Hires (Hedge Week)
Brevan Howard, a high-profile global macro hedge fund manager founded by Alan Howard, has strengthened its global business development team with a quartet of appointments in the US, Europe and Asia, with hires from well-known hedge fund firms including Exodus Point Capital Management and Bluecrest. Natalie Smith has joined in New York as head of strategy, with an investor-focused mandate within directional and relative value macro investing. Smith joins from Commonwealth Asset Management.
Why Fisher Investments Thinks Inflation Worries Are Premature (Reuters)
When July’s CPI report showed prices rising 0.6% m/m to bring the year-over-year inflation rate to 1.0% (1.6% excluding food and energy), inflation’s rebound from its pandemic slump quelled fears of deflation ravaging the US. But it didn’t do anything to ease a related fear: hot inflation. While no one argues July’s results are the first sign of an inflationary spiral, many point to what they see as massive Federal Reserve money printing as an inflation tsunami-in-waiting. While Fisher Investments completely agrees it is healthy to view the Fed with skepticism, we think it is crucial to note that markets move on probabilities, not possibilities.
Stellex Capital Management Raises Nearly $1.8bn for Second Flagship Fund (Opalesque.com)
Stellex Capital Management has soared to an impressive final close for its sophomore fundraise, beating its initial $1.25bn target to reach $1.775bn final close. Stellex Capital Partners II, the middle-market distressed and special opportunities fund focuses on investments between $50 million to $150 million within the automotive, aerospace, building products, consumer, defense, food, general industrial, and transportation sectors. The previous fund of the private equity firm with over $2.6 billion in AUM, closed on $870 million in July 2017. Investors in the fund include the New York State Common Retirement Fund, Albany; the New Jersey Pension Fund, Trenton; Illinois Teachers’ Retirement System, Springfield; Connecticut Retirement Plans & Trust Funds, Hartford; Orange County Employees Retirement System, Santa Ana, Calif.; Houston Firefighters’ Relief and Retirement Fund; and Baltimore City Employees’ Retirement System.
Chewy Inc (CHWY) CEO Sumit Singh Sold $4.3 million of Shares (Guru Focus)
CEO of Chewy Inc, Sumit Singh, sold 70,000 shares of CHWY on 09/08/2020 at an average price of $61.67 a share. The total sale was $4.3 million. Chewy Inc has a market cap of $24.7 billion; its shares were traded at around $61.50 with and P/S ratio of 4.60. GuruFocus has detected 1 severe warning sign with Chewy Inc.
Activist Hedge Fund’s SPAC Starboard Value Acquisition Prices Upsized $360 million IPO at $10 (Nasdaq.com)
Starboard Value Acquisition, a blank check company formed by Starboard Value, raised $360 million by offering 36 million units at $10. The company offered 6 million more units than anticipated. Each unit consists of one share of common stock, one-sixth of a warrant, exercisable at $11.50, and a contingent right to receive at least one-sixth of a warrant. The company may raise an additional $100 million at the closing of an acquisition pursuant to a forward purchase agreement with clients of Starboard Value.
True Beacon’s Hedge Fund Outperformed the Markets. Here’s How (Forbes)
In March as the market fell, True Beacon, a hedge fund, was well positioned to take advantage of the volatility. Over the last year, it has returned 27 percent with almost all its outperformance coming after and on account of the market fall in March. As markets have rallied since then, CIO Nikhil Kamath has increased his hedging and says he may not outperform from here on.
Identifying the Real Opportunities in Real Assets (Preqin.com)
Jeff Eaton, who leads origination at placement agent Eaton Partners, tells us why investors should add real assets strategies to their alternatives allocation. Why are real assets a compelling investment opportunity for investors? We define real assets as those underpinned by hard, tangible assets, which can be very different across real assets strategies. For example, while we would distribute an aviation leasing deal to both private credit and real assets buyers, we would put it in a real assets bucket because the deal is underpinned by the aviation (real) assets. In the majority of cases, these underlying assets are essential to a process, product, or customer, thus making them largely uncorrelated to economic cycles. More often than not, they’re also subject to long-term contracts that produce stable cash flows for long periods of time. This makes them a fundamentally compelling asset and explains why there is so much interest in them.
The Managing Director & Chief Executive Officer of Western Areas (Other OTC: WNARF) is Selling Shares (Analyst Ratings)
Today, the Managing Director & Chief Executive Officer of Western Areas (WNARF), Daniel Richard Lougher, sold shares of WNARF for $174.8K. Following Daniel Richard Lougher’s last WNARF Sell transaction on March 20, 2020, the stock climbed by 0.7%.
Republic Services Inc (RSG) COO Timothy E Stuart Sold $1.4 million of Shares (Guru Focus)
COO of Republic Services Inc, Timothy E Stuart, sold 14,710 shares of RSG on 09/09/2020 at an average price of $95.2 a share. The total sale was $1.4 million. Republic Services Inc is the provider of solid waste management services in the United States. In addition, the company operates landfill gas-to-energy projects, as well as an exploration and production waste business.
