Gammon Capital Up 449% Is Betting on New Wave of Market Turmoil (Bloomberg)
A New York hedge fund that’s gained 449% in this year’s pandemic roller-coaster is betting on a new wave of volatility in the event Congress fails to extend a key bank provision in any new stimulus bill. As time runs short on breaking the legislative impasse, Gammon Capital LLC has been loading up on bearish stock options to wager on the prospective market fallout.
US Hedge Fund Challenges LG Corporate Overhaul (Asia.Nikkei.com)
SEOUL — A U.S. hedge fund is challenging a plan by South Korea’s LG to spin off four affiliates through a new holding company for a relative of the Koo family, arguing that it will fail to create value for long-suffering minority shareholders. Whitebox Advisors, an LG minority shareholder, sent a letter to LG’s board on Tuesday asking South Korea’s fourth-largest conglomerate to scrap its plan to spin off LG Hausys, LG MMA, Silicon Works and LG International & Pantos.
Hedge Funds That Don’t Actually Hedge Are Killing It This Year (Institutional Investor)
Light Street, Tiger Global are among many hedge fund firms whose long-only funds are outperforming. In a very volatile year marred by a bear market, several of the best performing funds managed by hedge fund firms have been ones that do not hedge – specifically, long-only funds.Many of them have overcame and erased a huge early sell-off and are now beating the major stock market…
Hedge Fund Boss Banned and Fined £100k Over Manipulated Trades (Citywire.co.uk)
The Financial Conduct Authority (FCA) has banned former hedge fund chief investment officer Corrado Abbattista and fined him £100,000 for market abuse. The regulator found Abbattista, formerly of Fenician Capital Management, guilty of creating a false impression of equity demand and supply which he did not intend to execute.
BNP Paribas Asset Management Launches Two Infrastructure Debt Funds (Opalesque.com)
BNP Paribas Asset Management has launched two infrastructure debt funds. BNP Paribas European Infrastructure Debt Fund II is targeting 500 million Euros and BNP Paribas European Junior Infrastructure Debt Fund I is targeting 300-500 million Euros. BNP Paribas European Infrastructure Debt Fund II will focus on the digital infrastructure and renewable energy sectors, among others. The strategy follows from BNP Paribas European Infrastructure Debt Fund I, which closed in 2017 on 474 million Euros.
Shares in Solutions30 Slide on Muddy Waters Short-Seller Report (Reuters)
PARIS (Reuters) – Shares in French-listed technology company Solutions30 slid on Tuesday, after hedge fund Muddy Waters issued a short-seller report citing corporate governance issues at the company – concerns the company has denied. Solutions30 shares were down by around 34% in early trading. Solutions30 issued a statement on Dec 14 in which the company said it had been the target of a destabilisation campaign using “malicious and disloyal methods.”
Adapting to Low Risk Premiums (Hedge Nordic)
Stockholm (HedgeNordic) – The hunger for yield is growing, as yields and risk premiums are going down across the board. We are reaching what were once conceived as unthinkable levels while dealing with a pandemic from which the dire economic consequences are still to be fully seen. “This is also evident within our investment universe, in the mortgage bond market, where risk premiums – observable in the form of the yield pick-up compared to government bonds – are either close to or below their historic lows,” says Carsten Bach, CIO at Copenhagen-based CABA Capital. During the summer of 2017, Carsten Bach, Niels-Ulrik Mousten, and Mette Østerbye Vejen launched the fixed-income hedge fund CABA Hedge to harvest structural risk premiums from AAA-rated Scandinavian mortgage bonds.
How Global Macro Hedge Funds can Capitalise on the “Looming” Economic Normalisation (Hedge Week)
Global macro hedge funds from across the emerging market, systematic and discretionary spectrum may be well-placed to capitalise on prevailing equity valuations amid economic “normalisation”, Lyxor Asset Management strategists said this week. While discretionary global macro funds offer a tactical bias, which appears relevant “at the trough of the business cycle”, emerging market-focused macro managers benefit from stronger credit profiles of energy and metal exporters amid rising commodity prices.