China’s Top Quant Hedge Fund High-Flyer Apologizes for Loss (Bloomberg)
China’s top quant hedge fund apologized to investors after a record slump in performance, highlighting challenges facing the industry following a period of breakneck growth. The recent drawdown, caused in part by mistimed trades, was the biggest in the firm’s history, Zhejiang High-Flyer Asset Management said in a statement late Tuesday on its Wechat account. The investment manager didn’t give a number for the decline.
As Cathie Wood’s Funds Struggle, Head of Anti-Ark ETF Says He’s Surprised His Fund—up 8% in December—isn’t Drawing More Flows (Market Watch)
The present travails of ARK Invest founder, Cathie Wood, in the world of exchange-traded funds are no secret. The star investor’s flagship ARK Innovation ETF ARKK, -1.21% is down for the year and notably down 11% so far in December, even as the broader market has enjoyed new records for the S&P500 index. That is, perhaps, why Matthew Tuttle is a bit surprised that an anti-Cathie Wood ETF that was launched back in mid November hasn’t drawn more inflows.
Value Hedge Fund Gains from Past Experience with the Great and the Good (Opalesque)
Shawn Badlani founded Honest Capital LLC in April 2020 and launched a concentrated, long-term, long-biased fund that invests in high-quality North American small and mid-cap equities. By the end of the year, the fund had returned 88%. This outstanding performance, he says, comes from his very own past experience. Before founding Honest Capital, Badlani spent almost a decade as a partner and portfolio manager at Marcato Capital Management in San Francisco, a mid-cap, concentrated, value-focused activist hedge fund with $3bn of AuM at its peak. Before that, he was an investment analyst at Canyon Capital Advisors, a multi-strategy, credit-focused, value hedge fund based in Los Angeles, with about $10bn of AuM at the time. Prior to Canyon, he was an analyst at Blackstone.
Photo by Austin Distel on Unsplash
Astrology Fund Predicts Correction In 2022; Says Sell Stocks, Buy Gold (Forbes)
When you get right down to it, stock predictions and market forecasts are just a glorified form of fortune telling. While fundamental analysis is a more educated form of guessing, it’s still guessing. Why not just get rid of all the pretense and go full bore into fortune telling with astrology? That’s what the Astrology Fund does. Henry Weingarten, the fund’s managing director does use fundamental and technical analysis, but he adds astrology as an extra component to his forecasting. He admits he doesn’t get every market surprise, but tries to get 30% of the surprises, which “should be enough to make a lot of money.”
Soros Firm Looks to UBS for New General Counsel Hollenbeck (1) (Bloomberg Law)
Billionaire George Soros’s investment firm reached into UBS Group AG for its new general counsel, Andrew Hollenbeck, who spent a dozen years at various UBS units. Hollenbeck, most recently general counsel for UBS Asset Management Americas Inc., is responsible for all legal, regulatory, and compliance issues at Soros Fund Management, including the oversight of portfolio transactions and family office matters, said Soros spokesman Michael Vachon. Hollenbeck’s hire had not previously been publicly disclosed.
