Boaz Weinstein’s Trade Looks Set to Flourish on Credit Suisse Demise (Reuters)
Hedge fund manager Boaz Weinstein pinned hopes on Credit Suisse’s survival, but also money on its demise. His derivatives trade which bet both on the success and failure of the bank now looks set to pay off, according to data from IHS Markit. After shares in the 167-year old lender slumped last week amid fears of contagion from a U.S. banking crisis, UBS on Sunday (UBSG.S) agreed to pay 3 billion Swiss francs ($3.23 billion) for the bank in a package engineered by Swiss regulators.
Leon Cooperman Sees Fed Raising Interest Rates a Quarter-Point (Bloomberg)
Leon Cooperman said he expects the Federal Reserve to raise interest rates another quarter-point at its meeting this week as it tries to quell the turmoil engulfing the banking industry. “They’re going to accept a higher level of inflation than they would like to accept because of the stress in the financial system,” Cooperman, founder of New York-based Omega Advisors, said Monday in an interview on Bloomberg Television. “They have to stabilize the Treasury market, because the volatility of bonds is so great that it’s destabilizing equities.”
Hedge-Fund Manager Nelson Peltz Says the Government should Insure all Bank Deposits — for a Price (CNBC)
The federal government should expand its guarantee to all bank deposits regardless of size in order to slow bank runs, but it should charge customers for that insurance, hedge-fund manager Nelson Peltz said Monday. The Trian Fund Management founding partner told CNBC that customers pulling money out of smaller banks is a “dangerous situation” and that he has talked to elected officials about expanding the deposit insurance program that is currently capped at $250,000 per account. The change would involve paying insurance premiums to the Federal Reserve.
Image by Sergei Tokmakov Terms.Law from Pixabay
US Hedge Fund Sues DPK Over Royal Albert Dock Regeneration Deal (TwinFM.com)
US hedge fund Baupost Group has filed a claim in London’s High Court against DPK Management over a deal to acquire the Royal Albert Dock development. The lawsuit concerns the allegation that DPK Management backed out of a deal to jointly acquire the east London site, with Baupost seeking damages for a breach of contract. Royal Albert Dock in London’s East End was due to be transformed into a 4.7 million sq ft financial district, supported by the Mayor of London and the UK government. The site is home to the ExCeL centre and London City Airport.
Hedge Funds and Other Holders of $17bn of Credit Suisse Bonds Wiped Out in UBS Deal (Hedge Week)
Hedge funds and other holders of $17 billion of Credit Suisse bonds have seen their investments wiped out completely under the terms of the bank’s $3 billion acquisition by rival UBS, according to a report by the Financial Times. As part of the deal, Swiss financial regulator Finma ordered that SFr16bn ($17bn) of Credit Suisse’s additional tier 1 (AT1) bonds, a relatively risky class of bank debt, must be written down to zero to add roughly $16 billion of equity to support UBS’s takeover.
Hedge Fund Exposure Pays Off for University Endowment (Hedge Nordic)
The endowment fund of Aalto University in Finland edged down 3.5 percent after all fees and costs in 2022 during what was a challenging year for institutional investors. The endowment fund’s “alternative risk” allocation, a portfolio of hedge fund strategies that accounts for a little over 20 percent of its €1.3 billion portfolio, returned 11.1 percent in 2022. The endowment’s exposure to hedge funds has finally paid off.
Citadel Sees Limited Impact on Energy Demand from Banking Crisis (Reuters)
U.S. hedge fund Citadel expects a tighter credit environment following the latest banking crisis but so far the economic decline is not enough to plunge commodities into the abyss, its head of commodities told Reuters. Banking stocks and bonds plummeted on Monday and oil was at 15-month lows as the hit to investors from UBS Group’s state-backed takeover of Credit Suisse fanned concerns about the health of the global financial sector.
Quantitative Crypto Hedge Fund Opens Latest Fund to Investors (Opalesque.com)
Strix Leviathan, a Seattle-based quantitative manager trading digital assets founded in 2018, is opening a new market-neutral fund to investors. Launched in July 2022, The Aurora Fund generates yield from the many opportunities in the decentralised finance (DeFi) space. The Fund is targeting 20-30% annualised returns. As of February 28th, the initial seven-month track record is positive, at a time of the extremely volatile crypto markets following the collapse of FTX in November. The Fund returned 1% MTD, 3.5% YTD and 8.6% ITD. Decentralised finance is a new financial paradigm that leverages distributed ledger technologies to offer services such as lending, investing, or exchanging crypto assets without relying on a traditional centralized intermediary.
Fleetcor Technologies to Eye Alternatives, Refreshes Board (Reuters)
Fleetcor Technologies (FLT.N) on Monday said it will consider selling or separating one or more of its businesses and is adding two new board members amid pressure from hedge fund D.E. Shaw Group. Fleetcor, which provides fuel cards and workforce payments products, added Rahul Gupta, a veteran board member director and expert in the digital services and payments industry, as a new director.
Monday 3/20 Insider Buying Report: CNC (Nasdaq.com)
At Centene, there was insider buying on Friday, by Chief Executive Officer Sarah London who purchased 30,000 shares at a cost of $62.60 each, for a total investment of $1.88M. This purchase marks the first one filed by London in the past year. Centene is trading up about 3.3% on the day Monday. London was up about 3.5% on the purchase at the high point of today’s trading session, with CNC trading as high as $64.81 in trading on Monday.
Buy With The Board: 3 Massive Yields With Insider Buying (Forbes)
Insiders may sell their shares for a variety of reasons. Usually, because they need the cash. But execs who know “what’s up” with their company better than anyone only buy with one purpose in mind. They believe their stock price is going higher. Or, if it’s a dividend stock, at least it is not going down anytime soon! We’re going to highlight dividends up to 15.8% (yes, that’s no typo) with recent insider buying. This is especially notable these days because: Vanilla investors are worried this is 2008, Part Deux. Inflation is still running hot. And stocks have been going down for 15 months and counting.
