Tiger Global, Coatue, and Other Hedge Funds Tried to Upend Venture Capital. It Backfired and Now They’re ‘Licking Their Wounds,’ VCs say. (Business Insider)
As 2022 rolls to a close, the statistics are clear: So-called crossover investment firms like Tiger Global and Coatue Management — which whipped the venture-capital industry into a dealmaking frenzy in 2021 — slammed on the brakes this year. Their 2022 retreat demonstrates that crossover firms, which are venture funds run by hedge-fund firms, don’t fully understand the venture-capital industry, some traditional VCs insist.
Scaramucci Talks FTX, Sam Bankman-Fried and ‘the Worst Week in Cryptocurrency History’ (CNBC)
Anthony Scaramucci, founder of SkyBridge Capital and a short-time Trump administration communications director, spoke Friday morning on CNBC’s “Squawk Box” about friend and business partner Sam Bankman-Fried, CEO of crumbling crypto exchange FTX. FTX, which took a 30% stake in Scarmucci’s SkyBridge Capital in September, is facing potential bankruptcy after a “bank run” on the crypto exchange left it about $8 billion short. Bankman-Fried says he was unaware of the extent of user leverage because of poor internal labeling of bank-related accounts.
Fund Manager Gagliardi Faces Block-Trading Probe, Ex-Employer Says (Bloomberg)
A lawsuit filed by the hedge fund Evolution Capital Management says that federal authorities are probing the activities of Robert Gagliardi, a former fund manager at the firm, as part of a criminal investigation into block trading. Evolution, which said in its filing that US Marshals seized Gagliardi’s mobile phone last year in connection with the probe, added that it received a subpoena from the Securities and Exchange Commission earlier this year that was “clearly focused in large part upon Gagliardi,” the complaint said. The fund, which also goes by ECM, is suing Gagliardi in New York state court over a pay dispute.
Phongphan/Shutterstock.com
Reinsurance Hedge Fund Tangency Capital Raises $200 mln (Reuters)
Reinsurance hedge fund Tangency Capital has raised $200 million from investors, bringing its total assets under management to “north of $600 million,” one of its co-founders told Reuters, as the market anticipates sharp rises in premium rates. Tangency Capital launched in 2018 and invests in the property reinsurance market. Reinsurers, who reinsure insurers, have suffered losses in recent years as a result of large natural catastrophes such as Hurricane Ian, which hit in September and may lead to claims of up to $60 billion.
Bridgewater’s China Bets Suffer Again After Stock Sell-Off But Founder Dalio Sees Bright Long-Term Outlook (SCMP.com)
Bridgewater Associates took another knock on its bets on Chinese stocks last quarter amid the biggest sell-off since 2015, stoked by Beijing’s enduring zero-Covid policy and monetary tightening policy in developed markets. A sharp market rebound this week suggests it might get better from here. The world’s biggest hedge fund recorded an 11 per cent decline to US$1.21 billion in the value of its equity stakes in 44 US-listed Chinese companies, according to its latest 13F regulatory filing for the September quarter on Thursday. Its portfolio suffered a 37 per cent drop in value in the preceding three months.
Coffey’s Kirkoswald to Open Singapore Office (Hedge Week)
Singapore continues to attract new high-profile hedge fund business with Greg Coffey’s Kirkoswald Asset Management the latest firm to announce plans to open an office in the city-state, according to a report by Bloomberg. The report cites a Singapore Commercial Credit Bureau document as revealing that the New York-based macro hedge fund firm registered a local Singapore entity in April. Kirkoswald, which according to a US Securities and Exchange Commission filing oversaw $7.6 billion of regulatory assets at the end of January, follows Rokos Capital Management in establishing a presence in Singapore.
Viking Gained, Light Street Lost in October (Institutional Investor)
Viking has outperformed most of the other Tiger-related funds this year. Viking Global Investors bucked the Tiger crowd last month, posting a gain in October and moving even closer to finishing the year in the black.The hedge fund firm’s long-short fund, Viking Global Equities, rose by 1.1 percent in October, trimming its loss for the year to just 4.6 percent.
Friday 11/11 Insider Buying Report: CABO, TLS (Nasdaq.com)
At Cable One, a filing with the SEC revealed that on Wednesday, Director Thomas Sinnickson Gayner bought 10,000 shares of CABO, for a cost of $656.86 each, for a total investment of $6.57M. Gayner was up about 5.7% on the purchase at the high point of today’s trading session, with CABO trading as high as $694.39 in trading on Friday. Cable One is trading up about 5.7% on the day Friday. Before this latest buy, Gayner bought CABO at 6 other times during the past twelve months, for a total cost of $8.27M at an average of $1252.95 per share. And at Telos, there was insider buying on Thursday, by Director Fredrick Schaufeld who purchased 250,000 shares for a cost of $3.63 each, for a trade totaling $907,500. This buy marks the first one filed by Schaufeld in the past twelve months. Telos is trading up about 23.8% on the day Friday. So far Schaufeld is in the green, up about 32.0% on their buy based on today’s trading high of $4.79.
$4 Million Bet On Boeing? Check Out 4 Stocks Insiders Are Buying (Benzinga)
Boeing Company: The Trade: The Boeing Company (BA) President and CEO David Calhoun acquired a total of 25,000 shares an average price of $158.88. To acquire these shares, it cost around $3.97 million. CME Group: The Trade: CME Group Inc. (CME) Director William R Shepard acquired a total of 48,705.8 shares at at an average price of $170.06. To acquire these shares, it cost around $8.28 million.
Drugmaker Mylan’s CIO Charged in Insider Trading Scheme (Bloomberg Law)
Ramkumar Rayapureddy, the chief information officer of drugmaker Mylan N.V., has been charged with one count of conspiracy to commit securities fraud and three counts of securities fraud, the Department of Justice said Thursday. Rayapureddy allegedly conspired with Dayakar Mallu, a former colleague, to execute trades in the company’s securities using nonpublic inside information concerning Food and Drug Administration drug approvals and financial earnings, the DOJ said. If convicted, Rayapureddy could receive a maximum penalty of 20 years in prison for each of the securities fraud charges and five years in prison for the conspiracy charge, the DOJ said.
Follow Insider Monkey on Twitter
