UK Court Says Elliott, Jane Street can Sue LME for Cancelled Nickel Trades (Reuters)
A British court has granted permission for U.S.-based hedge fund Elliot Associates and Jane Street Global Trading to sue the London Metal Exchange (LME) for cancelling nickel trades in March, a court document showed. Elliott and Jane Street are demanding damages of $456.4 million and $15.34 million respectively, after the nickel price topped a record $100,000 per tonne on March 8, prompting the LME’s suspension of nickel trading and voiding of trades.
Cathie Wood Warns Fed of Policy Error as Rate Hikes Hit ARK ETFs (Bloomberg)
Cathie Wood, whose innovation-themed ETFs have plummeted in this era of rising interest rates, is taking the Federal Reserve to task for its aggressive tightening campaign. In the latest market commentary from her firm ARK Investment Management, Wood pens an open letter to the Fed expressing concern that the central bank is making a policy error with its rapid rate hikes.
Paul Tudor Jones Believes We are in or Near a Recession and History Shows Stocks have More to Fall (CNBC)
Billionaire hedge fund manager Paul Tudor Jones believes the U.S. economy is either near or already in the middle of a recession as the Federal Reserve rushed to tamp down soaring inflation with aggressive rate hikes. “I don’t know whether it started now or it started two months ago,” Jones said Monday on CNBC’s “Squawk Box” when asked about recession risks. “We always find out and we are always surprised at when recession officially starts, but I’m assuming we are going to go into one.”
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This Hedge Fund Is Betting Hard Against GameStop Stock. Are Shorts Playing With Fire? (The Street)
Bireme Capital is one of the several brave hedge funds that have short positions in GameStop (GME). Based on business fundamentals, GameStop is an obvious short case, according to the fund. Even with broad market bearishness, GameStop stock has overperformed the S&P 500 during some significant stretches this year, most recently between July and August. Considering GameStop’s trading activity, does a strict fundamentalist viewpoint offer a full picture of the stock? Bireme Capital’s short thesis Bireme Capital is a hedge fund that describes its strategy as incorporating a mix of both qualitative and quantitative investing styles. Its Fundamental Value fund, with a long-term short bias, outperformed the market in Q2, returning -1.4% versus -16.1% for the S&P 500.
Billionaire Hedge Fund Founders are Readying Their Firms to Outlast Them. Here’s the Next Generation of Leaders as Industry Titans Like Ray Dalio Step Back. (Business Insider)
Some of the top hedge funds in the US are preparing to turn over their legacies to the next generation of leaders. Ray Dalio, the billionaire founder and longtime chief of Bridgewater Associates, recently relinquished control of his $150 billion firm, the biggest hedge fund in the world. Dalio will remain on Bridgewater’s board, publish research, and take on the role of “CIO mentor,” the company said.
