US Economy on Cusp of Stagflation, World’s Largest Hedge Fund Warns (Fox Business)
The world’s largest hedge fund is sounding the alarm over a possible return to 1970s-style “stagflation,” as the Federal Reserve moves to tame sky-high inflation. Bridgewater Associates co-Chief Investment Officer Bob Prince told Bloomberg TV this week that markets have not fully absorbed the shock of what’s happening in the economy and investors are too optimistic about the path for inflation and interest rates.
Hedge Fund Elliott Chases Oil and Gas Deals, Bucking Wall Street (Reuters)
May 25 (Reuters) – Energy bankers who lost one client after another when poor returns pushed many investment firms out of the U.S. oil patch got a welcome email earlier this year. Elliott Management, a hedge fund founded and co-led by billionaire Paul Singer and best known for its activist investing, wrote to the bankers in January inviting them to pitch opportunities to acquire U.S. oil and gas acreage, according to people familiar with the matter.
Hedge Fund Manager Alan Howard Explains Why He’s Investing Across the Entire Crypto Ecosystem (TheBlockCrypto.com)
British billionaire Alan Howard turned heads when he began investing in crypto startups in late 2020. But although it quickly became clear that the 58-year-old hedge fund heavyweight was dedicating a significant amount of time to the sector, few could have guessed quite how deep down the crypto rabbit hole he had gone.
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Angelo Gordon Raises $3.1b for the Second Credit Solutions Fund (Opalesque)
Angelo Gordon raised its second debt fund focusing on special situations and distressed companies. According to a press release from the $50 billion credit and real estate investment firm, AG Credit Solutions Fund II LP raised $3.1 billion of equity commitments, exceeding the Fund’s $3.0 billion target in seven months from the initial to a final close. The Fund received significant support from current Angelo Gordon clients and new institutional and retail investors globally. Ryan Mollett, Angelo Gordon’s Global Head of Distressed & Corporate Special Situations and portfolio manager of the Fund, said, “The strong support we received for our second fund is a validation of our solutions-based approach and commitment to using our capital, creativity, and scale to help companies address complex capital situations.”
Soros Warns ‘Civilization May Not Survive’ Putin’s War (Bloomberg)
Billionaire George Soros warned that Russia’s invasion of Ukraine has rattled Europe and could be the start of another world war. “Other issues that concern all of humanity — fighting pandemics and climate change, avoiding nuclear war, maintaining global institutions — have had to take a back seat to that struggle,” Soros, 91, said Tuesday at the World Economic Forum in Davos, Switzerland. “That’s why I say our civilization may not survive.”
Hedge Fund Boss Ken Griffin Says LME was ‘Incomprehensibly Wrong’ to Wipe $4bn in Nickel Trades (Financial News)
Kenneth Griffin, chief executive and founder of hedge fund Citadel, is the latest finance giant to criticise the London Metal Exchange after a March spike in nickel prices led the trading platform to cancel almost $4bn in trades. “That was one of the worst days in my professional career in terms of watching the behaviour of an exchange,” he said in an interview with Bloomberg on 19 May.
Averill Partners Is Up 275 Percent in Two Years (Institutional Investor)
The top-performing hedge fund specializes in an unlikely part of the market. Talk about a successful launch. A little more than two years after it began trading, Averill Partners is one of the hottest hedge funds around. After gaining 6.8 percent in April, the fund was up 18 percent over the first four months of this year.
Wendy’s Shares Surge as Trian, Its Largest Shareholder, Explores Potential Deal (CNBC)
Shares of Wendy’s surged roughly 15% in extended trading Tuesday after a filing revealed hedge fund Trian Partners, its largest shareholder, is exploring a potential deal with the company. Trian, along with its partners, owns a 19.4% stake in the burger chain and said it was seeking a deal to “enhance shareholder value” that could include an acquisition or merger, according to the filing.
Volatility Sees Hedge Fund Inflows Surge to $13.6bn in Q1 (Hedge Week)
Net inflows to hedge funds more than doubled from the previous quarter to come in at $13.6 billion in the first quarter of 2022, according to data from the Citco group of companies (Citco), an asset servicer with $1.8 trillion in assets under administration (AUA). Analysing funds it administers, Citco’s 2022 Q1 Hedge Fund Report found that all categories of hedge fund saw net inflows over the three-month period. The majority of capital flowing into the largest funds, with $6.2 billion going into funds larger than $10 billion in size.
Meet 14 Power Players Leading Wall Street’s Charge into the Public Cloud at Goldman Sachs, Citadel, JPMorgan, and Other Top Financial Firms (Business Insider)
Finance hasn’t always been open to public-cloud technology, largely due to security and regulatory concerns. But post-pandemic, that’s all changed. The cloud is currently taking Wall Street by storm, and a new class of power players is emerging with it. Big banks, top hedge funds and investment firms, and private-equity shops are increasingly opening up to the tech and using it seemingly everywhere.
Hedge Funds Brace for $20 Billion of Redemptions, Citco Says (InvestmentNews.com)
Hedge funds globally are bracing for nearly $20 billion of investor redemptions for the rest of 2022, even after seeing a net inflow in the first quarter, according to a report from Citco Group Ltd. Investors are already scheduled to withdraw $13.5 billion from the industry in the current quarter and another $6.3 billion the rest of the year, said the fund administrator. While the numbers are smaller than the first-quarter redemptions of almost $39 billion, they can change significantly in either direction, depending on fund terms and investor actions.
Top Hedge Fund Manager Sees Two Ways Out Of Soaring Inflation, And Neither One Is Pretty (The Dailywire)
Pershing Square Capital Management CEO Bill Ackman said on Tuesday afternoon that there are two ways the United States can escape soaring inflation — the Federal Reserve taking a hard-line stance on rising price levels or an economic collapse. In a preliminary effort to curb inflation, the Fed increased interest rates by a half point earlier this month — which marked the largest rate hike since May 2000, and followed a quarter point increase from near-zero levels two months ago. However, Ackman argued that inflation is still “out of control” — and that markets are “imploding” as a result.
Wednesday 5/25 Insider Buying Report: CUE, DINO (Nasdaq.com)
At Cue Biopharma, a filing with the SEC revealed that on Tuesday, Director Aaron G.L. Fletcher bought 205,000 shares of CUE, at a cost of $3.47 each, for a total investment of $711,700. Fletcher was up about 10.3% on the buy at the high point of today’s trading session, with CUE trading as high as $3.83 in trading on Wednesday. Cue Biopharma is trading up about 12.3% on the day Wednesday. And also on Tuesday, Director Franklin Myers bought $495,089 worth of HF Sinclair, buying 10,700 shares at a cost of $46.27 a piece. Before this latest buy, Myers made one other buy in the past year, purchasing $268,350 shares for a cost of $35.78 each. HF Sinclair is trading up about 1.7% on the day Wednesday. Myers was up about 6.2% on the purchase at the high point of today’s trading session, with DINO trading as high as $49.15 in trading on Wednesday.
Executives Sell Around $207M Of 5 Stocks (Benzinga)
Noble Corporation: The Trade: Noble Corporation (NE) 10% owner Pacific Investment Management Co Llc sold a total of 143,763 shares at an average price of $31.15. The insider received around $4.48 million from selling those shares. Cadence Design Systems: The Trade: Cadence Design Systems, Inc. (CDNS) Director Lip-Bu Tan sold a total of 40,000 shares at an average price of $143.77. The insider received around $5.75 million from selling those shares.
4 Stocks with High Levels of Insider Buying (Entrepreneur)
Heavy insider buying can be a good indicator of future price appreciation for stocks because insiders often have insight into the growth prospects of their companies. Shares of Intel (INTC), CSX (CSX), Centene (CNC), and AutoZone (AZO) have been heavily bought by insiders of late. So, we think it could be wise to add these stocks to one’s watchlist. Let’s discuss. Since the beginning of the year, the stock market has faced substantial selling pressure due to investors’ concerns about aggressive interest rate increases by the Federal Reserve to tame runaway inflation, supply disruptions arising from the Ukraine-Russia war, rising energy and commodity prices, and the possibility of a recession.
