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).
Hedge Funds Shun the Private Markets (Institutional Investor)
Previously active firms in the venture capital market haven’t made any new investments over the past month or two. A number of hedge fund firms known for aggressively investing in private companies have abruptly halted these efforts. More than a half-dozen firms didn’t make a single new venture capital investment in May, while several haven’t made a private investment this entire quarter.
Warren Buffett and Ray Dalio Buy Up Tech Stocks as Dan Loeb Sells (CMCMarkets.com)
Hedge funds such as Dan Loeb‘s Third Point LLC have been moving away from the tech giants amid the growth stocks selloff. However, some fund managers, like Ray Dalio‘s Bridgewater Associates and Warren Buffet‘s Berkshire Hathway, have decided to go against the grain and are pouring money into big tech.
Tiger Global Plans to Raise a New Fund for Private Investments as Public Markets Sour (Fortune)
After closing a $12.7 billion fund mere months ago, Tiger Global is planning to go back to market. The firm intends to raise a new fund this year or next, a person familiar with Tiger told me in a recent feature story for Fortune. There has already been interest from the firm’s existing LP base, the person says. While the firm’s public hedge fund has experienced $17 billion in losses this year, there’s a different dynamic in the other, separate side of its business—the private side, where there have been many up rounds and portfolio companies are experiencing significant growth, according to the person. (A Tiger spokeswoman declined to comment on performance and didn’t respond to a request for comment on whether Tiger planned to raise another fund).
Friday 5/27 Insider Buying Report: CVNA, DTC (Nasdaq.com)
At Carvana, a filing with the SEC revealed that on Tuesday, See Remarks Paul W. Breaux purchased 15,000 shares of CVNA, at a cost of $27.59 each, for a total investment of $413,850. Breaux was up about 20.7% on the purchase at the high point of today’s trading session, with CVNA trading as high as $33.30 in trading on Friday. Carvana is trading up about 6.4% on the day Friday. This buy marks the first one filed by Breaux in the past year. And at Solo Brands, there was insider buying on Wednesday, by Chief Financial Officer Somer Webb who bought 70,372 shares for a cost of $4.17 each, for a total investment of $293,116. This buy marks the first one filed by Webb in the past year. Solo Brands is trading up about 14.5% on the day Friday. So far Webb is in the green, up about 33.2% on their buy based on today’s trading high of $5.55.
Executives Sell More Than $30M Of 5 Stocks (Benzinga)
SBA Communications: The Trade: SBA Communications Corporation (SBAC) Director, Chief Executive Officer & Pres Jeffrey Stoops sold a total of 30,000 shares at an average price of $344.07. The insider received around $10.32 million from selling those shares. Berry Corporation: The Trade: Berry Corporation (BRY) 10% owner Thomas Gahan sold a total of 741,000 shares at an average price of $11.08. The insider received around $8.21 million from selling those shares.
SoFi: Major Insider Buying And The Big Banks Are Buying Also Per 13F Filings (Seeking Alpha)
SOFI’s CEO, Anthony Noto, has made 10 insider purchases since 3/4/22, and other insiders have been accumulating shares as well. The Q1 13F filings indicate there was a large amount of institutional buying as companies such as Morgan Stanley loaded up on shares of SOFI. The sooner President Biden makes a decision on student debt the better. If $10,000 is eliminated, it’s bullish for SOFI because the payments will start again.
SEC Halts Alleged Ongoing $39 Million Fraud by Hedge Fund Adviser (HedgeCo.net)
(HedgeCo.Net) The Securities and Exchange Commission has announced fraud charges against Detroit-based EIA All Weather Alpha Fund I Partners LLC (EIA) and its sole owner, Andrew M. Middlebrooks, for allegedly engaging in a multi-year scheme that included the misappropriation and misuse of investors’ funds. To halt this alleged ongoing fraud, the SEC sought, and on May 19, 2022 obtained, emergency relief from the U.S. District Court in the Eastern District of Michigan, including a temporary restraining order against EIA and Middlebrooks and an asset freeze against the defendants and named relief defendants.
