Hedge Fund Talent Picks Middle East Over London and New York, Headhunters Say (Financial News)
Amid the rising cost of living and higher taxes, top hedge fund talent is moving away from financial centres like London and New York to the UAE, Saudi Arabia, Kuwait, and Bahrain, according to headhunters. This year, global hedge funds such as All Blue Capital and ExodusPoint Capital Management opened offices in Dubai. All Blue Capital moved its corporate headquarters from London to Dubai in March and relocated most of its team from the UK’s capital. The firm did not respond to Financial News’ request for comment on the number of staff that moved.
The Chief Investment Officer at the World’s Biggest Hedge Fund Says We’re Headed for a Recession that’s ‘Double the Normal Length’ — and it has a Lot to Do with China (Fortune)
The world’s biggest hedge fund is sounding the alarm about the potential for a protracted multi-year recession. Bridgewater Associates co-chief investment officer, Greg Jensen, warned this week that during periods of high inflation like what the U.S. economy is experiencing today, recessions tend to last longer—unless central banks slash interest rates quickly. And Federal Reserve Chair Jerome Powell made it clear this week that rate cuts aren’t in the cards.
Hedge Funds Say They Lost $95 Million in LME Nickel Crisis (Bloomberg)
A group of hedge funds led by AQR Capital Management LLC said that they lost a combined $95 million during a turbulent few days when the London Metal Exchange controversially canceled billions of dollars in nickel trades and suspended the market. The group of funds on Friday applied to force LME to hand over information relating to two key phone calls on March 8, the day that the trades were canceled. AQR Chief Investment Officer Clifford Asness has been among the most vocal critics of the LME’s actions during the crisis, describing the events as “one of the worst things I’ve ever seen.”
Rawpixel.com/Shutterstock.com
Three Arrows Capital Estimated Its Assets at Around $1B in July: Report (CoinDesk)
Bankrupt crypto hedge fund Three Arrows Capital (3AC) estimated its assets to be worth around $1 billion in July, The Block reported, citing a document prepared by 3AC liquidator Teneo. The document was sent to creditors Thursday and said the assets included $37 million in fiat money, tokens worth about $238 million, non-fungible tokens (NFT) worth around $22 million and venture and other investments valued at $502 million. “Due to volatility in the crypto market generally, together with the substantial number of illiquid investments held by the company, it is presently uncertain what level of recoveries will be made during the course of the liquidation,” Teneo wrote, according to the report.
CABA Flexes Up with New Launch (Hedge Nordic)
Stockholm (HedgeNordic) – The yield spread between Scandinavian mortgage and government bonds reached levels observed during the financial crises of 2008 and 2011. Copenhagen-based fixed-income specialist CABA Capital is launching a new fixed-income fund, CABA Flex, to capitalize on the current elevated and attractive spreads. “CABA Capital is launching a new fixed-income fund with an expected return over three years of 40-50%, gross of fees,” announces the Danish fixed-income boutique.
