Bearish Investor Boaz Weinstein is Feeling the Pain from This Year’s Unexpected Stock Rally (Business Insider)
Boaz Weinstein‘s Saba Capital is reportedly the latest hedge fund to have been tagged by the surprise 2023 rally, with bears racking up major losses as stock prices continue to soar. Saba’s flagship $1.3 billion fund is down just under 8% so far this year, while another $1 billion fund it runs has fallen by a similar amount, according to a report by the Financial Times citing a letter to investors. The funds aim to protect investors against periods of market dislocation.
Hedge Fund Titan Bill Ackman on the Short Side of Long-Term Bonds (ETF Trends)
With the expectation that rate hikes will be dissipating, fixed income investors may start to look at long-term Treasury debt again. However, hedge fund titan and Pershing Square Capital Management founder Bill Ackman said the opposite. A confluence of factors contributed to Ackman’s bet on shorting Treasury notes, including a potential de-dollarization by China (and other countries), sticky inflation, rising defense costs, long-term Treasuries residing in overbought territory, and more. In short, yields could stay elevated for longer than generally anticipated, pushing down prices over time.
RSF Capital Fund Manager Ran $5 Million Ponzi Scheme, SEC Says (Bloomberg Law)
A hedge fund manager allegedly raised more than $5 million from approximately 20 investors in a Ponzi scheme, the Securities and Exchange Commission said in a complaint. Chad Stickforth raised the assets through his company RSF Capital LP between December 2016 and September 2021. By April 2022, all the money that investors had piled into the purported hedge fund was gone, according to the complaint filed Tuesday in US District Court for the District of Colorado.
Thursday 8/10 Insider Buying Report: CVBF, MACK (Nasdaq.com)
On Tuesday, CVB Financial Corp (CVBF)’s Director, George A. Borba Jr., made a $4.99M buy of CVBF, purchasing 257,704 shares at a cost of $19.37 each. CVB Financial Corp is trading up about 2.7% on the day Thursday. And at Merrimack Pharmaceuticals (MACK), there was insider buying on Tuesday, by Eric Andersen who bought 221,550 shares for a cost of $12.00 each, for a total investment of $2.66M. Before this latest buy, Andersen made one other buy in the past year, purchasing $1.85M shares for a cost of $11.52 each. Merrimack Pharmaceuticals is trading up about 2% on the day Thursday. So far Andersen is in the green, up about 4.6% on their purchase based on today’s trading high of $12.55.
$2M Bet On Biohaven? Check Out These 4 Stocks Insiders Are Buying (Benzinga)
Compass Diversified: The Trade: Compass Diversified (CODI) 10% owner Elias Sabo acquired a total of 50,000 shares an average price of $22.36. To acquire these shares, it cost around $1.12 million. Cerevel Therapeutics: The Trade: Cerevel Therapeutics Holdings, Inc. (CERE) President and CEO Ronald Renaud Jr bought a total of 83,857 shares at an average price of $23.96. To acquire these shares, it cost around $2.01 million.
