Activist Honest Capital Opposes $2.8 Billion Sale of At Home Group (Reuters)
BOSTON (Reuters) – Hedge fund Honest Capital said on Tuesday that it opposes a $2.8 billion deal that At Home Group Inc signed last week to sell itself to private equity firm Hellman & Friedman, even as the U.S. home goods retailer searches for a higher bid. Honest Capital wrote to the company’s board of directors to argue the $36-per-share all-cash deal was too low a valuation for At Home, given that it has plans to more than double its number of stores to 600 and consumers have more cash to spruce up their decor. Home decorating trends are expected to be fueled by low mortgage rates, continued housing demand and a trend for ongoing work from home after the pandemic.
Billionaire Howard to Return Cash From Secretive Hedge Fund (Bloomberg)
Billionaire Alan Howard is returning money to investors from the secretive hedge fund that he personally runs. He’s redeeming clients in the Brevan Howard AH Master Fund that he started four years ago to make bigger and riskier bets, according to people with knowledge of the matter. Howard will continue to manage capital for the firm’s two other money pools, the people said, asking not to be identified because the details are private. It’s not immediately clear if Howard is shutting the fund altogether.
Why Bitcoin Could Rocket To A $250,000 Price Within Five Years (Forbes)
Bitcoin, after surging at the beginning of the year, has plateaued over the last couple of months. The bitcoin price nudged $65,000 per bitcoin in April before falling back slightly – with other, surprising cryptocurrencies stealing the limelight. Now, the chief investment officer of hedge fund Morgan Creek Capital Management has predicted the bitcoin price could soar to $250,000 within five years, arguing bitcoin “is going to become the base layer protocol for the internet of value.”
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Hedge Fund ExodusPoint Takes Short Position in Deliveroo After Disappointing IPO (CityA.M)
Hedge fund ExodusPoint Capital Management has reportedly taken a short position in Deliveroo after the delivery firm’s disastrous market debut. The New York hedge fund’s bet makes up approximately 0.56 per cent of Deliveroo’s shares, Financial News reported. The short position, which could be worth as much as £26m based on its closing price, marks the first big public short of Will Shu’s firm since its disappointing start in March.
Billionaire Ray Dalio on His Routine-Free Life, What Keeps Him Up at Night and His Next Chapter (CNBC)
Today, Ray Dalio is a finance legend who’s been called “the Steve Jobs of investing” because of his tough but innovative management style. Dalio famously founded Bridgewater Associates out his two-bedroom apartment in 1975. He hit rock bottom in 1982 when a bad bet that wiped him out financially and he had to borrow $4,000 from his dad to rebuild his company from scratch.
Hedge Funds Face Backlash From Europe in Bond Market (The Wall Street Journal)
European governments are acting to limit hedge funds’ participation in the market for new sovereign-bond issuance, following a surge in demand from the firms. The pushback was prompted by unusually large orders placed by hedge funds for new bonds, which can then potentially be sold – sometimes within hours – to the European Central Bank for a profit, bankers, investors and a government official said. Order books, which track demand for new bonds and help determine the prices, have ballooned since hedge funds began to pile into this trade.
