Hedge Fund Billionaire Bill Ackman Sees the Fed Keeping Rates Higher for Longer as Inflation Poses Biggest Threat to Economy (Business Insider)
The Federal Reserve and Chairman Jerome Powell will keep benchmark interest rates higher for longer to tame inflation, Bill Ackman tweeted Tuesday. The billionaire hedge fund manager said inflation poses the biggest risk to the US economy, not Fed rate hikes, as high prices weigh on consumer and business confidence. “The Fed understands this and therefore I expect Powell will show hawkish resolve on not only maintaining higher rates for longer, but also being open to a terminal rate meaningfully higher than 3.4%,” Ackman predicted.
Ellington’s Vranos Bets on ‘90s Trades That Brought Him Fame (Bloomberg)
The Federal Reserve’s flurry of interest rate hikes is recreating the market conditions that helped mortgage investor Michael Vranos make his fortune in the early 1990s. Now, he is betting the same trades will help him win again. The Fed’s current rate tightening cycle is reminiscent of the central bank’s actions nearly thirty years ago, when it raised rates by 300 basis points to 6%. This created the opportunities that allowed Vranos to set up a hedge fund now known as Ellington Management Group.
As Stock Price Deadline Looms, Waitr turns over More Shares to New York Hedge Fund (The Advocate)
A New York hedge fund has increased its stake in Waitr amid the Lafayette-based delivery service app’s attempts to shift its business strategies and find a more solid financial footing as its days on the stock market may be numbered. Luxor Capital Group bumped its ownership from about 10% to 17% through a debt-for-equity exchange, according to federal filings and company statements. The hedge fund loaned Waitr $60 million in 2018.
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Unintended Consequences? US Hedge Fund Industry Raises Alarm on SEC Private Fund Plans (Hedge Week)
With private fund advisor rules firmly in the SEC’s compliance crosshairs, a majority of US managers say they are concerned about the regulator’s far-reaching proposals, which could bring significant operational and compliance burdens and substantially impact certain hedge fund strategies. The Securities and Exchange Commission is taking an increasingly strident approach towards market regulation under chair Gary Gensler, with new proposals covering private fund advisors, environmental, social and governance (ESG) disclosures, and digital assets and cryptocurrencies, among other things, potentially heralding sweeping changes to financial services in the US.
Argosy Private Equity Raises $422m for Latest Fund (Opalesque)
Argosy Private Equity, a lower middle market private equity firm, has raised $422 million for its sixth fund. The fund beat its target and reached its hard cap. Consistent with Argosy V, Argosy VI will focus on making control investments in niche manufacturing and business-to-business service companies with $20 to $100 million of revenue and $3 to $10 million of EBITDA. “Argosy’s brand has been built upon being disciplined investors in the lower middle market and we continue to believe in the opportunity it has to offer,” said Michael Bailey, Partner.
