Private Capital Dry Powder Share Dips as AUM Surges (Preqin)
The balance of cash held by funds is down as managers put capital to work amid higher costs of entry. As private capital assets under management (AUM) climb, the amount of dry powder is growing to record levels. With the recent run-up in both fundraising and performance, private capital managers are holding the largest pool of capital in their history. Low interest rates and public equity volatility have made their strategies more appealing, particularly to institutions under pressure to perform.
Tiger Global Incurs $17bn Loss from Dollar Decline (Hedge Week)
The hedge fund Tiger Global has lost $17 billion throughout this year’s tech selloff, one of the biggest dollar declines for a hedge fund in history, according to a report from the Financial Times. Figures show that, in just four months, the hedge fund has lost an estimated two thirds of gains since its 2001 launch. When the hedge fund initially launched, investors saw their capital increase in value 20-fold.
AQR’s New ESG Fund Tops 94% of Peers by Shunning Fossil Fuels (Bloomberg)
An investment fund launched last year by AQR Capital Management LLC outperformed the vast majority of its peers thanks to a long-short ESG strategy that shuns fossil fuels. The AQR Sustainable Long-Short Equity-Carbon Aware Fund is up about 20% this year, which is a better result than 94% of comparable funds, according to data compiled by Bloomberg. The MSCI World Index plunged 17% in the same period.
Barrenjoey recruits JPMorgan Head of Hedge Fund Sales (AFR.com)
Barrenjoey’s set to ramp up its hedge fund sales business after recruiting JPMorgan executive director Justin Lindquist. Lindquist is understood to have resigned from JPMorgan, where he was head of hedge fund sales for Australia. The trader spent three years at JPMorgan and formerly worked at Morgan Stanley. He specialises in pitching ideas to Australian and offshore hedge funds, and facilitating trades on their behalf.
BlackRock’s Star Trader Goes Short as Hedge Fund Loss Mounts (The Business Times)
BLACKROCK star money manager Alister Hibbert has turned bearish as his hedge fund endures its worst-ever losses amid a sharp decline in stocks. The BlackRock Strategic Equity Hedge Fund tumbled 13 per cent this year through April, a person with knowledge of the matter said. That exceeds its worst annual decline of 11 per cent. The money manager, who has profited from the historic surge in stocks since starting the fund in 2011, turned net short for the first time ever this month, said the person. His portfolio was net long about 35 per cent at the end of last year.
Tuesday 5/10 Insider Buying Report: PYPL, MP (Nasdaq.com)
At PayPal Holdings, a filing with the SEC revealed that on Friday, EVP, Chief Product Officer Mark Britto bought 7,370 shares of PYPL, for a cost of $81.04 each, for a total investment of $597,229. PayPal Holdings is trading off about 2% on the day Tuesday. And at MP Materials, there was insider buying on Monday, by Director Connie K. Duckworth who bought 15,200 shares at a cost of $38.37 each, for a trade totaling $583,224. This buy marks the first one filed by Duckworth in the past year. MP Materials Corp is trading down about 9.1% on the day Tuesday.
Executives Sell More Than $220M Of 3 Stocks (Benzinga)
Rivian Automotive: The Trade: Rivian Automotive, Inc. (RIVN) 10% owner Ford Motor Co sold a total of 8,000,000 shares at an average price of $26.80. The insider received around $214.14 million from selling those shares. Dutch Bros: The Trade: Dutch Bros Inc. (BROS) CEO and President Joth Ricci sold a total of 71,125 shares at an average price of $42.47. The insider received around $3.02 million from selling those shares.
