London Brevan Howard Hedge Fund Gives $1 Billion to Credit Traders in Growth Push (Bloomberg)
Brevan Howard Asset Management is expanding its traditional macro business into credit trading. The investment firm has allocated more than $1 billion to a group of credit trading specialists, according to people with knowledge of the matter. The move is seen internally as a new growth area for Brevan Howard, which has until now mainly focused on rates trading, derivatives and relative value strategies, said the people, who asked not to be identified because the information is private.
Glass Lewis Backs All Hasbro Directors in Boardroom Fight with Alta Fox (Reuters)
BOSTON, May 27 (Reuters) – Proxy advisory firm Glass Lewis on Friday recommended that Hasbro shareholders reelect all of the company’s director nominees, dealing a blow to hedge fund Alta Fox‘s effort to replace three board members. “We do not believe there is a sufficient basis to support the board changes sought by (Alta Fox),” Glass Lewis wrote in its report, adding “the preponderance of the evidence validates Hasbro’s strategy and business model.”
Inflation ‘Out of Control,’ Markets ‘Imploding’: Hedge Fund Billionaire Blames Loss of Confidence in Fed (The Epoch Times)
Hedge fund billionaire Bill Ackman has criticized the U.S. Federal Reserve for the way it has handled inflation, warning that the agency’s modest interest rate hikes won’t be able to control the uncontrolled increase in prices. “Inflation is out of control. Inflation expectations are getting out of control. Markets are imploding because investors are not confident that the @federalreserve will stop inflation. If the Fed doesn’t do its job, the market will do the Fed’s job, and that is what is happening now,” Ackman, the founder and CEO of hedge fund Pershing Square Capital Management, said in a series of tweets on May 24.
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ExodusPoint Average Pay is $1m But Staff Don’t Always Last (eFinancialCareers)
Among big multi-strategy hedge funds, ExodusPoint was a laggard last year. It returned 6% according to Bloomberg, compared to an average 8.3% rise at multistrategy funds; Citadel‘s Wellington Fund returned 26% and Millennium returned 14%. This might be intentional: Business Insider says ExodusPoint investors aren’t looking for fireworks and want dependable returns. And yet steadier returns could, in time, imply lower compensation. At the same time, the ExodusPoint stands accused of the curse of many of in the sector: hiring staff and letting them go; if you don’t make money within its risk parameters, you won’t last long there.
Andreessen Horowitz Establishes a $4.5bn Crypto Fund, the Industry’s Largest (Opalesque)
The Silicon Valley venture capital firm Andreessen Horowitz (A16z) has raised a $4.5 billion crypto fund, the industry’s largest to date, despite the market downturn. The fourth fund, which is dedicated to web3 startups and projects, brings its total funds raised for digital currency investments so far to more than $7.6 billion. “We think we are now entering the golden era of Web 3,” the company said in its announcement, adding that it’s “excited” about developments in blockchain gaming, decentralized finance (DeFi), decentralized social media, and non-fungible tokens (NFT).
