Greenlight’s Einhorn Optimistic Twitter Deal with Musk will Close (Reuters)
Hedge fund manager David Einhorn, whose Greenlight Capital has had a long history with entrepreneur Elon Musk, in a letter on Friday said he expects Musk’s deal to buy Twitter Inc. (TWTR.N) will “close at or near the originally agreed upon price.” Einhorn told his investors in August that he had bought a stake in Twitter, and now said he believes the lawsuit in Delaware that could decide the fate of the deal “is going well for TWTR.” The hedge fund acquired a new stake in the social media company in July as Twitter sued to force Elon Musk to buy the company even as the billionaire entrepreneur said he had changed his mind about the deal.
Shorting Colombia’s Peso Is a Top Trade at Brazilian Hedge Funds (Bloomberg)
No currency has been harder hit than the Colombian peso over the past month, and Brazilian hedge funds are partly to blame. Trading desks in Rio de Janeiro and Sao Paulo are piling into short bets on the peso, wagers that not only pay off when the currency weakens but can also exert downward pressure. They see storm clouds gathering over their Andean neighbor, and predict the nation’s fiscal and current account deficits will leave it extra vulnerable to a global economic slowdown.
A Brief History of Activist Investors in Tech and the Role They Play (Tech Crunch)
On Tuesday, activist investor Starboard Value revealed a significant stake in Salesforce, sending the company’s stock climbing more than 7%. A hedge fund founded in 2002 by Jeffrey Smith and Mark Mitchell, Starboard has a history of affecting change at major companies, spurring the spinning off of media startup Patch from AOL in 2014 and the replacement of the entire board of directors at Darden Restaurants, the company that owns Olive Garden and Longhorn Steakhouse.
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Institutions Keep Yanking Cash from Hedge Funds (The Wall Street Journal)
Investors have pulled back from their hedge-fund bets, despite the industry’s outperformance navigating this year’s volatility. Institutions yanked an estimated $26 billion from hedge funds in the third quarter, according to HFR, building on $27.5 billion outflows the prior quarter. An HFR index that weights hedge funds equally lost 1.1% in Q3, taking losses on the year to 6.7%. The biggest hedge funds did better. An index that gives more weight to larger firms gained 1.2% in Q3 and 3.3% so far in 2022. Both indexes are far above the S&P 500’s 22% losses on the year.
This Hedge Fund Made 35% on Its Twitter Bet — Now It’s Shorting GameStop and AMC’s ‘Absurd’ Valuations (Financial News)
Meme stocks are still over-valued, claims this short seller. In May, Bireme Capital took a roughly $10m position in Twitter. It wagered that Elon Musk would be forced to buy the social networking platform. That bet is now up 35% and the US-based hedge fund has now found another opportunity: Shorting meme stocks. “We have been shorting a bunch of stocks, including GameStop, AMC, and DWAC [Digital World…
Two Sigma Rolls Out Its Latest Offering (Institutional Investor)
With several of its existing funds solidly in the black this year, the quant giant has raised money for a new equity fund. Two Sigma has launched a new hedge fund. The quant giant and one of the world’s largest hedge fund firms has raised more than $518 million for Two Sigma Neptune Enhanced Fund, according to a regulatory filing.
DeFi-Focused Hedge Fund Edge Capital Management Raises $66.8M (Coin Speaker)
Edge Capital has very little information about its products but markets itself as an alternative investment manager specializing in digital assets and DeFi protocols. According to SEC filings, Edge Capital Management LLC, Florida-based decentralized finance (DeFi) focused hedge fund, has raised a total of $66.8 million in two separate fundings. Reportedly, the firm raised one offshore fund in the Cayman Islands from eight investors for a total of $38.6 million. On the other hand, the company raised a total of $28.1 million for a Delaware-incorporated fund from six investors.
Hedge Funds Suffer Further Outflows in Q3, Stockpickers Lead Way (Reuters)
Investors pulled an estimated $26 billion from hedge funds during the third quarter, according to data provider HFR, jarred by a global stock market plunge, soaring bond yields and geopolitical tensions. That comes on top of a $27.5 billion outflow in the second quarter, the first time that hedge funds have seen consistant outflows from one quarter to the next since the height of the COVID pandemic in 2020, HFR numbers showed.
Jeremy Louder Is The Only Hedge Fund Manager You Want to Work (FilmDaily.co)
Jeremy Louder, born in Texas, is a hedge fund manager and a well-known investor and businessman currently based in the Cayman Islands. He specializes in trading, asset management, strategic financial counseling, and cryptocurrency investments. Jeremy Louder is a well-known business specialist with over 20 years of experience in the financial services sector. To assist his clients in building wealth and protecting their assets, he has worked on several financial strategies with corporate and individual clients. He has an extensive experience in financial services, real estate, and cryptocurrency investment sectors.
Friday 10/21 Insider Buying Report: RLTY, QCRH (Nasdaq.com)
At Cohen & Steers Real Estate Opportunities and Income (RLTY), a filing with the SEC revealed that on Friday, Vice President Jason Yablon purchased 2,868 shares of RLTY, for a cost of $12.27 each, for a total investment of $35,190. So far Yablon is in the green, up about 1.1% on their purchase based on today’s trading high of $12.40. Cohen & Steers Real Estate Opportunities and Incom is trading up about 0.2% on the day Friday. And on Thursday, Director Marie Z. Ziegler purchased $6,527 worth of QCR Holdings (QCRH), purchasing 118 shares at a cost of $55.31 a piece. Before this latest buy, Ziegler purchased QCRH on 4 other occasions during the past year, for a total cost of $26,110 at an average of $56.51 per share. QCR Holdings is trading up about 1.9% on the day Friday. Investors have the opportunity to bag QCRH even cheaper than Ziegler did, with the stock changing hands as low as $54.06 in trading on Friday — that’s 2.3% below Ziegler’s purchase price.
$6 Million Bet On This This Stock? Check Out These 3 Penny Stocks Insiders Are Buying (Benzinga)
Axcella Health: The Trade: Axcella Health Inc. (AXLA) 10% owner Nestle SA bought a total of 3,658,536 shares at an average price of $1.64. To acquire these shares, it cost around $6 million. OPKO Health: The Trade: OPKO Health, Inc. (OPK) 10% owner Frost Gamma Investments Trust acquired a total of 100,000 shares at an average price of $1.72. The insider spent around $171.92 thousand to buy those shares.
Hedge Funds Stay Cautious on Pound Bets Amid Fears of More Political Volatility (Financial News)
Sussex Partners’ co-founder Patrick Ghali says a rise in sterling short bets reflects the ongoing negative UK macro outlook. The pound’s spike on 20 October after UK prime minister Liz Truss’ exit turned out to be a dead cat bounce, as the currency dropped below pre-resignation levels the following day. With volatility continuing around sterling, hedge funds are planning a cautious approach. Truss announced her resignation on 20 October, becoming the shortest-serving…
