Billionaire Investor Ray Dalio Says Fed Hikes Won’t Derail the Economy But are Likely to Hit ‘Bubble-Type’ Tech Stocks (Business Insider)
Billionaire investor Ray Dalio has said the Federal Reserve’s tightening of monetary policy in 2022 shouldn’t derail the economic expansion, but is likely to weigh heavily on “bubble-type” tech stocks. The Fed has signaled that it plans to hike interest rates this year as it tackles the strongest inflation in 39 years.
Hedge Fund Millennium to Expand in Paris With New Office for 100 Employees (Bloomberg)
Millennium Management has taken a lease in central Paris in a bid to expand its presence in the French capital. The hedge fund has struck a deal to rent the building located at 22 Rue Bayard, according to people with knowledge of the matter. The investment firm can house as many as 100 staff in the new office, which is expected to open in the second quarter, said one of the people, who asked not to be identified because the details are private. Millennium recently hired Bruno Benoit, former Societe Generale SA co-head of fixed income and currencies, to lead its expansion in the city.
Staude Capital Accuses Dan Loeb’s Third Point of ‘Trumpian Theatre’ (Standard.co.uk)
Miles Staude is the second shareholder to publicly criticise management of Third Point Investors, which is a feeder fund for Loeb’s US hedge fund. An extraordinary row between Third Point Investors and disgruntled shareholders escalated today as a second backer broke cover to blast management. Miles Staude of Staude Capital published an open letter to fellow shareholders accusing Third Point of “Trumpian theatre” and slack corporate governance. He has been lobbying behind the scenes for months.
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Ex-Elliot and Indaba Duo to Launch Activist Hedge Fund (Hedge Week)
Adam Katz, a former Elliot Investment Management executive, and Andy Dodge – ex-Induba Capital Management – to launch a mid-cap focused activist hedge fund according to Bloomberg. Capital-riaisng is said to be already underway for the new fund, which will be called Irenic Capital, with US250 million having been raised so far, including USD150 million commitent from the Fribourg family, owners of Continental Grain Co.
Chess Masters’ Hedge Fund Up 19% in 2021 (Opalesque)
Chessica LP, a market-neutral hedge fund, may have changed hands a few times but it is still thriving with annualised returns of 11.8% since its early-2010 inception. “The strategy is based on the concept of Delta Neutral*,” explains Alex Rabinovich, managing director of Chessica Management Group, LLC. “We trade options and exploit inefficiencies in the major indexes option structures. Since most of the time we don’t know where the market is going, it is easier to remain neutral. The key is to hedge and adjust as the market fluctuates. The strategy is supposed to outperform the hedge fund index in bull, bear, or idle markets, based on the design. We had some small bumps in 2021, but overall the market and the strategy were in our favour.”
