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.”
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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.
Tourmaline Partners Adds MD to Trading Team (Hedge Week)
Tourmaline Partners, an outsourced trading solutions firm for hedge funds and other asset managers, has appointed Matt Ney as a managing director and senior equity trader in the the firm’s Connecticut headquarters. Ney joins Tourmaline Partners with fifteen years of experience at Viking Global Investors, including eleven years of experience trading US equities and specialising in Technology, Media and Telecom (TMT), Industrials and Energy.
Quant Hedge Funds Are Back. Here’s Why (Institutional Investor)
Hedge funds that use quantitative techniques to spot opportunities, even those focused on equities, have generated some envious returns in a year marked by huge losses in both stocks and bonds. Take equity quant strategies, which are up 5.1 percent year-to-date through November, according to PivotalPath’s index tracking these funds.
Friday 12/16 Insider Buying Report: NRG, LILA (Nasdaq.com)
At NRG Energy, a filing with the SEC revealed that on Thursday, CEO Mauricio Gutierrez bought 15,000 shares of NRG, at a cost of $32.03 each, for a total investment of $480,450. Bargain hunters have the opportunity to pick up NRG even cheaper than Gutierrez did, with the stock changing hands as low as $30.65 in trading on Friday — that’s 4.3% below Gutierrez’s purchase price. NRG Energy Inc is trading off about 3.1% on the day Friday. And at Liberty Latin America, there was insider buying on Tuesday, by CEO Balan Nair who bought 35,076 shares for a cost of $7.12 each, for a trade totaling $249,590. Liberty Latin America Ltd is trading down about 0.8% on the day Friday. Investors can bag LILA even cheaper than Nair did, with the stock changing hands as low as $6.78 in trading on Friday — that’s 4.7% under Nair’s purchase price.
Elon Musk Dumps Another $3.6 Billion Of Tesla Stock; Here’s A Look At Recent Price Target Changes By The Most Accurate Analysts (Benzinga)
Tesla Inc (TSLA) CEO Elon Musk sold nearly $3.6 billion worth of shares in the electric vehicle maker on Wednesday. The billionaire sold 22 million shares of Tesla, according to the filing. The latest sale means that Musk has now sold almost $40 billion worth of the automaker’s stock over the past year. Tesla is looking forward to drilling for new water sources to supply an expansion of its electric vehicle plant near Berlin, reported Reuters citing local authorities and the water association.
Ardian and Mubadala Capital Reach $2.1bn Secondaries Deal (Opalesque)
Mubadala Capital, the wholly owned money management subsidiary of the $284 billion Abu Dhabi sovereign wealth fund Mubadala Investment Co., and Paris-based private investment house Ardian formed a $2.1 billion private equity partnership. The firms said in a joint news release that Ardian would invest in a portfolio of private equity assets managed by Mubadala Capital, and make a primary commitment to its private equity funds. Ardian and Mubadala Capital have built a strong relationship since forming a successful initial partnership in 2017, a milestone transaction that established Mubadala Capital as a third-party asset manager and represented the first time a sovereign wealth fund has managed capital on behalf of institutional investors, said the release.
CFTC Sues Glen Point and Founder Philips Over Alleged Illegal Options Trading Scheme (Hedge Week)
The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against hedge fund Glen Point Capital and its founder Neil Phillips over an alleged scheme to illegally trigger payouts on two options contracts totalling $30 million. Glen Point Capital Advisors LP and Glen Point Capital LLP (collectively, Glen Point Capital), two CFTC-registered commodity pool operators, and co-founder and co-chief investment officer Phillips have been charged with engaging in a “deceptive and manipulative scheme to illegally trigger payouts on two large binary option contracts”. Additionally, they have been charged with failing to supervise the trading activities of their officers, employees, and agents.
