Scaramucci Skeptical About FTX Restart: ‘I Don’t See How It’s Possible’ (Beincrypto)
SkyBridge Capital founder and former FTX backer Anthony Scaramucci has argued that restarting the failed exchange is impossible. The hedge fund magnate said that a decline in profitability has seen exchanges burn through private funds, making a restart highly unlikely. SkyBridge Founder Questions FTX Restart in Bear Market: “I don’t see how it’s possible to restart FTX,” he said in a recent interview. “Not a lot of money is being made on these exchanges right now, and so a lot of these exchanges are in the red.” He said that exchanges are using privately-raised capital to survive while waiting for an uptick in trading volumes during the next bull market.
Billionaire Ken Griffin Gives $20 Million to Miami Dade College Weeks After $300 Million Harvard Donation (Business Insider)
Ken Griffin‘s South Florida spending spree has now benefited a college where more than half the students are from low-income households. On Saturday, the billionaire founder of hedge fund Citadel donated $20 million to Miami Dade College, one of the country’s largest and most diverse schools. Griffin — who took home $4.1 billion in earnings last year, according to Institutional Investor — has donated hundreds of millions to education. Earlier this month, Griffin gave $300 million to Harvard University, his Ivy League alma mater, where he has now donated more than $500 million.
Bridgewater: The Tightening Cycle is Beginning to Bite (Opalesque.com)
Last year’s historically large and rapid tightening is starting to constrict the financial system and slow the economy, say Bob Prince, Greg Jensen and Karen Karnio-Tambour, co-CIOs at Bridgewater in a recent report. This is necessary and will need to be sustained to restore equilibrium conditions. In the meantime, the CIOs now favour cash in relation to assets in most developed economies and they favour assets in relation to cash in Japan, China, and much of Asia. The tightening cycle began roughly one year ago. It takes about that long for a tightening to have significant economic impacts, and signs are emerging that the effects are now spreading and deepening. A tightening cycle is a cycle of interest rate hikes.
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Hedge Fund Capital Up for Second Consecutive Quarter (Hedge Week)
Total hedge fund capital increased for the second consecutive quarter in the first three months of the year, as investors allocated new funds while key banking and financial risks surged and the risk of a recession increased, according to the latest data from HFR. Total global hedge fund capital rose to $3.88 trillion, a quarterly increase of over $50 billion. Investors allocated an estimated $9.1 billion in new capital to the hedge fund industry in Q1 2023, the first quarter of net asset inflows since the first three months of 2022.
Funds Ignore Wall Street’s Resilience, Most Bearish Since 2011: McGeever (Reuters)
Hedge funds remain unconvinced by Wall Street’s recovery from the March banking shock and have instead amassed their biggest bet in over a decade that the S&P 500 will fall. Commodity Futures Trading Commission (CFTC) data for theweek ending Tuesday, April 18 show that funds and speculative accounts increased their net short position in S&P 500 index futures by 36,645 contracts to just over 680,000 contracts.
