Bill Ackman’s New Acquisition Company Files for IPO of Up to $3 Billion (Reuters)
NEW YORK/BOSTON (Reuters) – Billionaire investor William Ackman, whose hedge fund is delivering some of the year’s best returns, said on Monday he was looking to raise $3 billion and commit at least $1 billion for a new blank-check investment vehicle, the largest ever of its kind. The initial public offering of the special purpose acquisition company (SPAC), Pershing Square Tontine Holdings, Ltd, plans to offer 150 million units at $20 each, according to a Securities and Exchange Commission filing.
Millennium Seeks $3 Billion of Private Equity-Style Capital (Bloomberg)
Millennium Management is in talks to raise as much as $3 billion in capital that it can draw on as needed to finance trades. The fundraising by Izzy Englander’s hedge fund will probably continue through the first half of next year, according to a person with knowledge of the matter. Building up such “callable” capital is a strategy often used by private equity funds.
Ken Griffin’s Citadel is Cashing in on the Day-Trading Boom by Buying Customers’ Orders (Business Insider)
Citadel Securities, the sister firm of the billionaire Ken Griffin‘s hedge fund, has emerged as one of the big winners of the day-trading boom. Citadel is the leading retail market maker, handling 40% of the shares traded by individual investors in the US, the Financial Times reported on Sunday, citing Piper Sandler data. The firm purchases orders from the big US brokerages, takes the other side of the trades, and makes money on the spread, the difference between the price to buy and the price to sell.
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Credit Hedge Fund Chenavari Eyes Alpha Generation as QE Creates “Unhealthy” Market (Hedge Week)
Continued central bank support amid the Covid-19 pandemic is creating “bubble-style valuations” in markets, according to Chenavari Investment Managers, a London-based credit-focused hedge fund. The prevailing backdrop is predominantly suited to long/short credit strategies in corporates and financials credit, it said. In a note to investors, Chenavari observed how the first half of 2020 saw a “brutal market dip”, which was quickly mitigated by “unprecedented” central bank and government support globally, helping to strengthen markets. But since then, the disconnect between the souring economic climate and a continued market rally has raised eyebrows.
Polar Capital Profits Drop on Mixed Performance (FnLondon.com)
FTSE-listed fund manager Polar Capital suffered a 20.7% decline in profits during the financial year ended 31 March, thanks to a slump in performance fees after its funds lost ground against markets and rivals. Polar, which manages £14.4bn, said it made £50.8m in pre-tax profits for the 2020 financial year, down from £64.1m. That was almost entirely due to the drop in performance fees to £8.8m, from £24m in 2019. The company said that “weaker relative performance across the product range compared to last year has resulted in the reduction in performance fee profits”, though chair Tom Bartlam pointed out that 2019’s performance fee haul had been a record.
CQS Cuts at Least 50 Jobs as Firm Retrenches (Pensions&Investment)
Hedge fund firm CQS slashed at least 50 jobs in an overhaul, as billionaire founder Michael Hintze retrenches to focus on core credit trading strategies. The cuts are mainly concentrated in sales and support areas, but have also affected trading teams focused on asset-backed securities, according to people with knowledge of the matter, who asked not to be identified because the information is private. CQS is seeking to reduce costs following a slump in high-fee earning hedge fund assets, the people said. The firm employed more than 280 people globally at the start of December, according to a letter to investors.
Equity Fund to Merge into Pacific Precious (Hedge Nordic)
Stockholm (HedgeNordic) – In November 2019, Swedish hedge fund house Atlant Fonder acquired Pacific Fonder and its range of three equity funds and two hedge funds. After liquidating two equity funds and merging one hedge fund into precious metals-focused hedge fund Pacific Precious, Atlant Fonder has now announced that the remaining equity fund, Pacific Explorer Dynamic, will be merged into Pacific Precious in mid-September. “In order to streamline our offering and reduce administrative costs, we have decided to merge the Pacific Explorer Dynamic fund with Pacific Precious,” says a press release by Atlant Fonder. The assets and liabilities of Pacific Explorer Dynamic “are transferred to Pacific Precious on the merger day,” which is set for September 18, 2020.
Billionaire Investor Leon Cooperman Warned Day Traders Against Reckless Betting. Here are 12 of His Best Quotes. (Business Insider)
Billionaire investor Leon Cooperman doesn’t shy away from airing his views, whether the topic is the next US president or the economic fallout from the coronavirus pandemic. Cooperman, the chairman and CEO of Omega Advisors, boasts a net worth of around $3.2 billion. He famously built up Goldman Sachs’ asset management division before founding his hedge fund in 1991. Cooperman recently warned Robinhood traders against reckless betting in a CNBC interview.
Monday 6/22 Insider Buying Report: CATM, ARVN (Nasdaq.com)
At Cardtronics, a filing with the SEC revealed that on Thursday, Director Rahul Gupta purchased 3,500 shares of CATM, for a cost of $24.77 each, for a total investment of $86,705. Bargain hunters can pick up CATM at a price even lower than Gupta did, with the stock changing hands as low as $23.43 at last check today which is 5.4% below Gupta’s purchase price. Cardtronics is trading up about 2.5% on the day Monday. Before this latest buy, Gupta made one other purchase in the past year, buying $47,150 shares for a cost of $18.86 a piece. And at Arvinas, there was insider buying on Wednesday, by Director Timothy M. Shannon who purchased 2,000 shares at a cost of $30.26 each, for a total investment of $60,520. Before this latest buy, Shannon purchased ARVN at 2 other times during the past twelve months, for a total cost of $196,900 at an average of $35.80 per share. Arvinas is trading up about 6.6% on the day Monday.
The President & Chief Executive Officer of Dollarama (Other OTC: DLMAF) is Selling Shares (Analyst Ratings)
Yesterday, the President & Chief Executive Officer of Dollarama (DLMAF), Neil George Rossy, sold shares of DLMAF for $125.1M. Based on Dollarama’s latest earnings report for the quarter ending April 30, the company posted quarterly revenue of $845 million and quarterly net profit of $86.08 million. In comparison, last year the company earned revenue of $828 million and had a net profit of $104 million. The company has a one-year high of $38.97 and a one-year low of $24.23. Currently, Dollarama has an average volume of 20.
Notable Insider Buys Last Week: Cigna, Fox, Uber And More (Benzinga)
Insiders continued to add shares despite overall market volatility and economic uncertainty. The following are some of the most noteworthy insider purchases reported in the past week. A director at Axis Capital Holdings Limited (AXS) indirectly bought less than 1.35 million shares of this Bermuda-based company at between $38.77 and $42.50 each. That totaled around $55.67 million, and it almost doubled the director’s stake. A Fate Therapeutics Inc (FATE) director indirectly picked up more than 1.41 million shares of this biopharmaceutical company for $28.31 each. That totaled about $40 million and brought the stake to nearly 12.63 million shares.
Insider Trading: June 22, 2020 (BIV.com)
Insider Eric S. Sprott, 10% owner. Company: Kore Mining Ltd. (TSX-V:KORE). Shares owned: 15,852,944. Trade date: June 12. Trade total: $199,065. Trade: Acquisition of 288,500 shares at a price of $0.69 per share. Insider Martin Lachlan MacLachlan, officer. Company: Canaccord Genuity Group Inc. (TSX:CF). Shares owned: 6,160. Trade date: June 16. Trade total: $180,180. Trade: Sale of 30,800 shares at a price of $5.85 per share.
SEC Awards Almost $700,000 to Whistleblower (HedgeCo.net)
(HedgeCo.Net) The Securities and Exchange Commission today announced an award of almost $700,000 to a whistleblower whose significant information helped the agency bring a successful enforcement action that resulted in the return of money to harmed investors. The whistleblower reported the problem internally before contacting the SEC in an effort to remedy the conduct, and provided continued assistance throughout the SEC’s investigation. “Because of the whistleblower’s actions, the agency was able to identify the misconduct and conserve time and resources during the investigation,” said Jane Norberg, Chief of the SEC’s Office of the Whistleblower. “This whistleblower stepped forward and helped the agency to protect and compensate harmed investors.”
