Point72, Renaissance Technologies, and Millennium are Trying to Make Quant Strategies Work in Bond Markets. Here’s Why their Nascent Credit-Trading Teams Face an Uphill Battle. (Business Insider)
Some of the biggest funds are pumping money, technology, and time into building out credit quant teams, sources have told Business Insider. Firms like Steve Cohen‘s Point72, Renaissance Technologies, and Millennium Management have all built out their teams as they try to apply their expertise in quant equity and FX trading strategies to the $9.2 trillion world of US corporate bonds. Recruiters tell Business Insider that firms are unsure of what to look for when hiring for these roles because “it’s just so different from the equity space.”
Hedge Fund Manager: Inflation Could Pop the Housing Market Bubble in 2020 (CCN.com)
The housing market is printing highs on several indices. Inflation might be the final nail in the coffin that ends the multiyear bull market. Believe it or not, the U.S. housing market is overvalued. This month, the U.S. Housing Market Index soared to 76, a level not seen in two decades. Some might claim that this is an ultra bullish signal but it’s more likely that the market is close to the top. Hedge fund manager Will Meade shares the same sentiment. The former Goldman Sachs analyst says that the real estate market is extremely overpriced. He’s confident that the housing market bubble will burst in 2020.
Regulator Seeks Probe Over South Korean Hedge Fund’s US Investment (Business Times)
LIME Asset Management Co., the firm at the centre of a scandal that sparked unprecedented withdrawals from South Korean hedge funds, now faces an investigation into its investment in a troubled US fund. A senior official at the Financial Supervisory Service (FSS) said South Korea’s top financial watchdog will ask prosecutors to probe Lime’s investment in funds run by International Investment Group LLC (IIG). The US Securities and Exchange Commission last month revoked IIG’s registration, accusing the New York-based investment adviser of hiding losses and selling at least US$60 million in fake loan assets to clients.
Former Hedge Fund Manager, Coal Investor Seeks Democratic Nomination (DailyAlts.com)
Tom Steyer has apparently not paid attention to the talking points of Sens. Bernie Sanders and Elizabeth Warren: Tom Steyer used to run a hedge fund. Now, he wants to be the President of the United States. His campaign strategy, however, is quite unprecedented. Both Steyer and Michael Bloomberg are buying up television advertising space at a breakneck pace. The two Democratic candidates have purchased $200 million in advertising space in states like Iowa. Steyer has purchased $83 million in advertisements.
New Hedge Fund Launches Fall to Lowest Level Since 2008 (Fox Business)
The hedge fund industry was more enthusiastic about product launches in the first half of the year than the back half so far. New hedge fund launches declined in the third-quarter falling to the lowest level since the fourth-quarter of 2008. It also reversed the first half trend. Launches totaled an estimated 102 in the third-quarter, bringing the year-to-date total to 391 new funds, according to the latest HFR Market Microstructure Report.
A 14,000% Jackpot and More, With the Help of Hindsight (Bloomberg)
Hindsight Capital’s Decade: A Detailed Report: On Monday, we published an executive summary of the trades made this decade by Hindsight Capital LLC, the hedge fund that regularly beats all others because it has the benefit of hindsight – and which unfortunately doesn’t exist.
Highland Capital Management LP Co-Founder Out Under Deal With Creditors (The Wall Street Journal)
The founder of bankrupt hedge fund business Highland Capital Management LP is on his way out as part of a proposed settlement with the fund manager’s unsecured creditors’ committee. The Texas-based business on Friday asked the U.S. Bankruptcy Court in Dallas to approve a tentative deal that would overhaul its corporate-governance structure. Changes would include the creation of a three-member independent board of directors at controlling general partner Strand Advisors Inc., as well as the departure of James Dondero, who…