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.
Einhorn Is Wrong About ‘Idiotic’ N.J. Deli, Ritholtz Says (Bloomberg)
Barry Ritholtz, a Bloomberg Opinion columnist, reacts to hedge fund legend David Einhorn presenting Hometown International as his choice for the new icon of irrational exuberance. He speaks with Bloomberg’s Tom Keene and Lisa Abramowicz on “Bloomberg Surveillance.” Ritholtz’s opinions are his own. (Source: Bloomberg)
Mark Cuban, Ray Dalio: Smart Early Moves to Build Wealth and Avoid Debt (CNBC)
It is no secret that Americans need to be taught financial literacy while they are young. Financial education has the ability to change people’s lives, but too often people receive inadequate education or no education at all. April is Financial Literacy Month and CNBC Invest in You is featuring weekly lessons from highly regarded business figures on building a better relationship with money, which Ariel Investments’ Mellody Hobson recently noted is the longest relationship you will have in your adult life.
Pristyn Care’s Valuation Doubles After $53 mn Fundraise Led by Tiger Global (Live Mint)
Bengaluru: Healthcare startup, Pristyn Care, has seen its valuation more than double to $550 million in just six months, after it raised $53 million in Series D round led by US-based hedge fund Tiger Global Management, the Gurugram-based company has said. Pristyn Care’s existing investors Sequoia Capital, Hummingbird Ventures and Epiq Capital also participated in the latest fundraise. With this capital infusion, the total funding raised by the startup stands at $81 million, since its inception in 2018.
Tuesday 4/20 Insider Buying Report: CLI, NRZ (Nasdaq.com)
At Mack Cali Realty, a filing with the SEC revealed that on Monday, Director A. Akiva Katz purchased 240,000 shares of CLI, at a cost of $15.67 each, for a total investment of $3.76M. So far Katz is in the green, up about 5.3% on their purchase based on today’s trading high of $16.50. Mack Cali Realty is trading up about 2.2% on the day Tuesday. Before this latest buy, Katz purchased CLI on 2 other occasions during the past year, for a total investment of $11.78M at an average of $14.95 per share. And at New Residential Investment, there was insider buying on Monday, by Chairman, CEO & President Michael Nierenberg who bought 100,000 shares for a cost of $10.10 each, for a total investment of $1.01M. New Residential Investment is trading up about 0.1% on the day Tuesday. So far Nierenberg is in the green, up about 3.6% on their buy based on today’s trading high of $10.47.
Bed Bath & Beyond Inc (BBBY) CFO and Treasurer Gustavo Arnal Bought $509,000 of Shares (Guru Focus)
CFO and Treasurer of Bed Bath & Beyond Inc, Gustavo Arnal, bought 20,000 shares of BBBY on 04/16/2021 at an average price of $25.45 a share. The total cost of this purchase was $509,000. Bed Bath & Beyond Inc operates a chain of retail stores. It operates under the names Bed Bath & Beyond, Christmas Tree Shops and Harmon and Harmon Face Values.
U.S. Regulator Bars Ex-Goldman Sachs Analyst for Insider Trading (Reuters)
NEW YORK (Reuters) -A U.S. regulator barred a former Goldman Sachs & Co research analyst from the brokerage industry for insider trading in two companies that the company was about to upgrade, and for lying about his trading. The Financial Industry Regulatory Authority (FINRA) said Brian Maguire bought $850,000 worth of shares in two companies last April and June after receiving internal emails that a fellow analyst would soon raise the companies’ ratings to “buy” from “neutral.”
