Hedge Fund Legend Ray Dalio Warns of a US Credit Crunch – and Says It could Tank Markets and Spark a Recession (Business Insider)
Ray Dalio warned a painful credit crunch could hammer financial markets and spark a recession. The billionaire investor said a surge in government-bond sales could cause private credit to dry up. Dalio also flagged the risks posed by US political tensions and overseas conflicts. American households and businesses could suffer a brutal credit crunch that slashes asset prices and tanks the economy, Ray Dalio has warned. The billionaire investor suggested private-sector lending could dry up if the heavily indebted US government ramps up bond sales to finance its spending plans.
Rokos Capital COO Andrew Brown Resigns (Financial News)
Brown will leave the firm around the turn of the year, a spokesperson for Rokos confirmed. Rokos Capital Management chief operating officer Andrew Brown is set to leave the hedge fund around the end of 2022. Brown, who joined the firm as a senior analyst five years ago, has been partner and chief operating officer of the hedge fund since April 2022.
Eisler to Shut Its Oldest Hedge Fund to Focus on Multi-Strategy (Bloomberg)
Eisler Capital will wind down its first hedge fund to focus entirely on its multi-strategy money pool as the firm pivots to an approach that’s increasingly popular with investors. The London-based firm has told clients in the Eisler Capital fund that it will return money in the strategy at the end of this year, according to an internal memo seen by Bloomberg. Eisler Capital Multi Strategy fund, which allows it to charge lucrative pass-through fees, is now the sole focus, the memo said.
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Dan Och Hates His Former Protégé So Much He’s Willing To Bring His Own Decisions Into Disrepute To Slander Him (Deal Breaker)
Sculptor Capital Management accuses Dan Och of having something of a messiah complex when it comes to the hedge fund he founded and which was formerly named for him. Indeed, there is certainly something of the divine in Och’s self-conception, insofar as in his retelling of the Sculptor story, he cannot be held to the same standards as mere mortal non-founders. The Africa-wide bribery scandal that unfolded under his leadership may have turned the former Och-Ziff’s shares into pink sheets in all but name, but depressed stock prices under his successors are unacceptable.
Cannot Turn Off Tightening Just Yet (Hedge Nordic)
Stockholm (HedgeNordic) – Fixed-income hedge fund manager Thomas Pohjanen believes policy interest rates will continue to rise in Sweden and Europe, while the United States fed funds rate is already approaching the lower end of a neutral range. Central banks around the world are on a path of tighter monetary policy in an effort to get to grips with surging inflation. Inflation rates in Sweden and the Eurozone are higher than in the United States. “In the US, inflation has landed between 8 and 8.5 percent over the past three months, well above the inflation target of 2 percent,” according to Pohjanen’s latest letter to investors.
