Why Dan Niles Likes Facebook and Alphabet as U.S. Economy Recovers from Covid (CNBC)
Hedge fund manager Dan Niles told CNBC on Monday he sees upside in Facebook and Google-parent Alphabet as the U.S. economy picks up steam following the coronavirus-induced recession. Niles’ comments come a little over a week before the two technology giants are expected to release their latest quarterly earnings reports.
Hedge Fund Giant Warns of SPAC Blowup After Betting $1 Billion (Bloomberg)
Hedge fund giant Marshall Wace is ringing alarm bells about the booming SPAC market after building up long and short bets on blank-check companies that total more than $1 billion. The life cycle of SPACs, or special purpose acquisition companies, is riddled with “perverse incentives” for investors, sponsors and the companies using the shortcut route to come to market, Paul Marshall, co-founder of the investment firm, told his investors in a newsletter. SPACs have delivered “awful returns” and most recent issuances will be no different, he said.
Billionaire Investor Mike Novogratz Says Dogecoin’s Record-Breaking Surge is Even More ‘Bizarre’ than GameStop Mania (Business Insider)
Billionaire investor Mike Novogratz on Tuesday said dogecoin’s record-breaking 600% monthly rally is even more “bizarre” than January’s GameStop mania. Dogecoin in recent weeks has outpaced the rally of bitcoin and ether, two of the largest cryptocurrencies by market capitalization. On Tuesday, advocates of dogecoin are banding together to push the price of the Shiba Inu-themed token to break $1 from its current $0.42 level, dubbing April 20 ‘Doge Day’.
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Credit Suisse Investors Seek Answers After Greensill, Archegos Debacle (Barron’s)
Investors in Swiss banking giant Credit Suisse are demanding answers about its risk-taking after the bankruptcies of British financial firm Greensill and US hedge fund Archegos bled it for billions of dollars. Shareholders will pick apart quarterly earnings data later this week seeking clarity over how the losses occurred and if more could be lurking on the horizon. “Obviously, there is a risk management problem,” said Dusan Isakov, a corporate finance and governance professor at Fribourg University.
Elizabeth Warren Invites Billionaire Critic Leon Cooperman to Testify at Senate Hearing on Taxes (CNBC)
Sen. Elizabeth Warren wants one of her biggest critics to face lawmakers in a hearing next week. Warren, a progressive Democrat from Massachusetts, is inviting billionaire investor Leon Cooperman to testify before a Senate Finance subcommittee hearing on taxes. Cooperman, in a response given to CNBC, acknowledged he received the message and said that he is considering Warren’s invitation. The senator requested that Cooperman confirm his attendance by Thursday.
Macro Hedge Fund Arete Capital Eyes Shorter Duration Assets Amid Rate Rise Shift (Hedge Week)
Global macro hedge fund Arete Capital Partners is tilting towards shorter-duration assets amid an evolving rate environment which carries far-reaching consequences for inflation and the cost of capital. The Arete Macro Fund – a China- and Asia-focused global macro hedge fund strategy – trades a spectrum of liquid assets including equities, fixed income and commodities. Established in 2012, it is one of nine hedge fund strategies that make up the Brummer Multi-Strategy fund, run by Stockholm-based Brummer & Partners. In a recent market commentary, Li noted the current “disconnect” between the market and the US Federal Reserve, which has seen the market pricing in as many as four rate rises between now and the end of 2023, while the Fed’s targeted stance suggests a more reactive approach to hikes.
