Bed Bath & Beyond Terminates Hudson Bay Deal, Turns to Market To Raise $300 Million (The Wall Street Journal)
Bed Bath & Beyond Inc. said that it had terminated its fundraising deal with hedge fund Hudson Bay Capital Management LP and instead launched an effort to sell up to $300 million of common stock in the open market. The troubled retailer is looking for cash to keep itself afloat and avoid bankruptcy as its sales erode and it closes hundreds of stores. The new financing plan comes less than two months after the deal with Hudson Bay was supposed to fund its operations for the year.
Citadel to Resume Hedge Fund Business in Japan With Tokyo Office (Bloomberg)
Ken Griffin’s hedge fund firm Citadel is planning to set up a team in Tokyo, returning to Japan more than a decade after it shuttered operations there during the global financial crisis, according to a person familiar with the matter. The company is applying for an investment management license to operate a hedge fund in the country and seeking to tap local talent, the person said, asking not to be named because the matter is private. Citadel has yet to decide when the office will open, the person added.
Three Arrows Capital’s Kyle Davies Ordered to Respond to Subpoena Within 2 Weeks (CoinDesk)
Three Arrows Capital (3AC) founder Kyle Davies has two weeks to respond to a subpoena pertaining to the books and records of the bankrupt hedge fund, according to a ruling in U.S. bankruptcy court. Davies and fellow 3AC co-founder Su Zhu have previously been accused of refusing to engage in proceedings for the firm’s bankruptcy. “[Davies and Zhu] have made only selective and piecemeal disclosures … Refusal to cooperate violates their duties owed to Three Arrows,” said the hedge fund’s liquidators, Russell Crumpler and Christopher Farmer, in a court filing on Feb. 8.
Michael Burry of ‘Big Short’ Fame Says He was ‘Wrong’ to Tell Investors to ‘Sell’ (Morningstar)
Michael Burry, the hedge-fund manager at Scion Asset Management made famous by Michael Lewis’s book “the Big Short,” said in a Thursday tweet that he was “wrong” to tell investors to sell stocks two months ago. Burry issued a one-word tweet on Jan. 31 advising his followers to “sell.” While he didn’t elaborate, MarketWatch’s Steve Goldstein noted at the time that it wasn’t hard to fill in the blanks.
Corporate Agitator Ackman Tells US to Raise FDIC Insurance Limit to Shore Up Confidence (Reuters)
Billionaire investor William Ackman who spent years telling corporations how to perform better is now taking on the U.S. government by calling for higher insurance limits to safeguard the banking system at the height of a banking crisis. Ackman, who runs hedge fund Pershing Square Capital Management, sent a letter to his investors saying the FDIC should raise its $250,000 per account limit days after U.S. regulators took over Silicon Valley Bank and Signature Bank, triggering a crisis in U.S. regional banks.
