Eisler Hedge Fund Faces Investor Scrutiny of Russia-Linked Cash (Bloomberg)
Some of the money that helped Ed Eisler launch one of the biggest startup hedge funds in Europe around seven years ago is now drawing scrutiny from other investors in his growing firm. The hedge fund manager got more than $100 million from an entity linked to Russian oligarch Mikhail Fridman when setting up his own shop in 2015, according to people familiar with the matter. This week, those ties have become the subject of questions from other investors in the fund, uneasy at finding themselves bedfellows with a company founded by a man sanctioned by the European Union, some of the people said.
Former Deerfield Management Partner to Launch USD3.5bn HHedge Fund in April (Hedge Week)
Alex Karnal, a former partner at Deerfield Manager is set to complete one of the biggest US hedge fund launches in years in April, with the debut of a new USD3.5 billion fund, according to a report by Bloomberg. The report quotes unnamed sources as saying that Karnal’s new Connecticut-based firm Braidwell will make public and private bets on the healthcare sector with a particular focus on biotechnology, pharmaceuticals, and medical devices and diagnostics.
“I Haven’t Been Right On This Call” — $35B Hedge Fund Manager Backtracks on Anti-Crypto Stance (ZyCrypto)
Citadel founder and CEO Ken Griffin is one disappointed hedge fund manager, reason – he ignored crypto when it mattered most, losing out on a great deal of revenue. Speaking on Bloomberg Wealth with David Rubenstein, the billionaire, 53, finally expressed his approval of crypto, describing it as one of the greatest stories in finance for roughly the last 15 years. “I have been in the naysayer camp over those 15 years,” he said, “crypto markets today have a market capitalization of about 2 trillion dollars in round numbers which tells you that I haven’t been right on this call over the last 15 years.”
Pressmaster/Shutterstock.com
Warren Buffett-Backed Chinese Automaker Sold More Than Double EVs Than Nio, Xpeng, Li Combined In February (Benzinga)
China’s BYD Co (OTC: BYDDF) sold more than double electric vehicles than the combined delivery volumes of homegrown startups such as Nio Inc (NYSE: NIO), Xpeng Inc (NYSE: XPEV) and Li Auto Inc (NASDAQ: LI) in February amid chip shortages and production halts. What Happened: The Shenzhen-based BYD sold 43,173 battery-powered electric vehicles in February, a jump of 451% year-on-year and a sales decline of about 7% over January. BYD, which is backed by Warren Buffett-led Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), reports sales volume on a monthly basis, unlike local rivals Nio, Xpeng and Li Auto, which report delivery numbers.
Hedge Funds Off to ‘Great Start’ in 2022, While Large-Cap Active Funds Struggle, Says BofA (MarketWatch)
U.S. mutual funds that focus on large-cap stocks are still struggling to beat their benchmarks, while hedge funds are off to a “great start” in 2022, according to BofA Global Research. Actively managed large-cap funds underperformed their Russell 1000 benchmarks on average by 12 basis points in February, lagging for a fifth straight month, BofA equity and quant strategists said in a research report Thursday. The percentage of large-cap managers beating their benchmarks dropped last month to 43%, from 51% in January.
Goldman Sachs GQG Fund Cuts Russian Exposure to $222 Mln (Reuters)
NEW YORK, March 3 (Reuters) – Goldman Sachs Asset Management has reduced the Russian exposure in its GQG international equity fund to about $222 million, according to a statement and a spokesperson, down from over $1.7 billion six months ago. The Goldman Sachs GQG Partners International Opportunities Fund was 0.99% exposed to Russia as of the end of February, Goldman Sachs said in a statement on its website, with holdings in Lukoil (LKOH.MM), Rosneft (ROSN.MM) and Gazprom.
Friday 3/4 Insider Buying Report: JRVR, GLPI (Nasdaq.com)
On Thursday, James River Group Holdings’ Director, J. Adam Abram, made a $489,463 buy of JRVR, purchasing 24,000 shares at a cost of $20.39 a piece. James River Group Holdings is trading off about 3.2% on the day Friday. This buy marks the first one filed by Abram in the past twelve months. And at Gaming & Leisure Properties, there was insider buying on Tuesday, by Urdang E. Scott who purchased 5,516 shares at a cost of $45.37 each, for a total investment of $250,261. Before this latest buy, Scott purchased GLPI at 2 other times during the past year, for a total investment of $183,340 at an average of $45.84 per share. Gaming & Leisure Properties is trading down about 0.2% on the day Friday. Scorr was up about 1.6% on the buy at the high point of today’s trading session, with GLPI trading as high as $46.11 in trading on Friday.
Hedge Fund H2O Holds On to Ruble Bets as Exiting Would be a ‘Gift’ to Putin (Bloomberg)
H2O Asset Management said it is maintaining its exposure to the Russian ruble in part because exiting its positions would be a gift to Vladimir Putin. “We consider that selling Russian assets, among which currencies, at such discounted rates is a counterproductive ‘gift’ to buyers, among whom the Russian government,” London-based H2O said in a letter to investors seen by Bloomberg News.
Infinity Q Capital Faces Investor Lawsuit Against Firm (Pensions&Investments)
A class-action suit has been filed against troubled hedge fund and mutual fund manager Infinity Q Capital Management, some of its employees, affiliated companies and service providers. The suit was filed on Feb. 17 in U.S. District Court for the Eastern District of New York by Schiavi & Co., SBA Schiavi + Dattani, Dominus Multimanager Fund and individual investors and alleges that the defendants violated federal securities laws, manipulated the firm’s pricing methodology and overstated the value of the firm’s hedge fund and mutual funds.
Energy Hedge Fund Eyes $200 Oil on Potential Russia Export Ban (Bloomberg Quint)
(Bloomberg) — The prospect of restrictions on Russian energy exports could send oil prices above $200 per barrel, according to Westbeck Capital Management. The London-based hedge fund is among a cadre of commodities-focused funds betting on an extended rally for crude after Russia’s invasion of Ukraine, even as a potential Iran nuclear deal paves the way for Tehran to return to international markets. In a letter to investors, Westbeck said a lasting impairment to Russian oil exports coupled with demand destruction will probably drive prices into the $150 to $175 range, and could overshoot above $200 — nearly double its current price. It said that spike might in turn fuel rampant inflation, potentially forcing the Federal Reserve to slam the brakes on rate rises.
Insiders Sell Around $92M Of 4 Stocks (Benzinga)
Upstart Holdings: The Trade: Upstart Holdings, Inc. (UPST) CEO Dave Girouard disposed a total of around 133,038 shares at an average price of $158.33. The insider received around $21.06 million as a result of the transaction. Centennial Resource Development: The Trade: Centennial Resource Development, Inc. (CDEV) Director Riverstone/Gower Mgmt Co Holdings, L.P. sold a total of 5,075,191 shares at an average price of $8.73. The insider received around $44.29 million from selling those shares.
