Hedge Fund Melvin Lost $6.8 Billion in a Month. Winning It Back Is Taking a Lot Longer. (The Wall Street Journal)
Gabe Plotkin wasn’t sleeping. His bets against meme stocks such as GameStop Corp. were backfiring, and losses at his $12.5 billion hedge fund were mounting. Strangers angry about his wagers were bombarding him with threatening messages and texts. At the worst point in January 2021, Melvin Capital Management was losing more than $1 billion a day as individual investors on online forums such as Reddit banded together to push up prices of stocks Melvin was betting against. “We were in a terrible position. Stared death in the face,” Mr. Plotkin told employees in a Zoom meeting late that month. “But we’ve made it through.”
George Soros Pumps $125 Million into Super PAC his Son Alexander will Become President of to Help Democrats Ahead of the Midterms: Donation is Aimed at Aiding ‘Pro-Democracy’ Candidates (DailyMail.co.uk)
Billionaire philanthropist George Soros is giving $125 million to a super PAC this election cycle to back Democrat candidates and causes in the midterms and beyond. The 91-year-old, who made his fortune in hedge funds, has used the Democracy PAC since 2019 to support political campaigns, channeling some $80 million through it during the 2020 cycle. The new money will support pro-democracy ’causes and candidates, regardless of political party’ who are invested in ‘strengthening the infrastructure of American democracy: voting rights and civic participation, civil rights and liberties, and the rule of law,’ Soros said in a statement shared first with Politico.
Brevan Howard Bolsters Crypto Arm as Assets Grow to $250 Million (Bloomberg)
Brevan Howard Asset Management has bolstered its new crypto unit with capital and staff. The macro trading hedge fund firm has committed more than $250 million to its newly created BH Digital business and the venture’s initial fund this month started trading the firm’s money, according to a person with knowledge of the matter. It plans to open to clients’ cash later this year.
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Steve Cohen’s Point72 Runs an Analyst Training Program with an Acceptance Rate of Less than 1%. A Top Exec Shares Her Biggest Do’s and Don’ts for Making the Cut. (Business Insider)
Steven Cohen‘s $23 billion hedge fund gets 16,000 applications a year for Point72 Academy. The academy is a 10-month training for college graduates looking to become investment analysts. The firm’s head of professional development shares what applicants can do to impress her. High grades from a top university and a two-year stint at an investment bank might be enough to get your foot in the door at some hedge funds.
Tybourne’s Ill-Fated E-commerce Bet (Institutional Investor)
The Tiger Grandcub is one of the first hedge funds to file its fourth-quarter 13F report. Tybourne Capital Management increased its big bet on e-commerce in the fourth quarter. The Tiger Grandcub boosted its stake in Argentinian e-commerce giant Mercado Libre by more than a quarter, making it the hedge fund firm’s largest U.S. listed long, according to its fourth-quarter 13F, filed with regulators on Wednesday.
Elliott Management to Sell Stake in Hong Kong Bank, Ending Activist Campaign (The Wall Street Journal)
A deal, if concluded, would follow years of tense relations and a long slide in Bank of East Asia’s stock price. One of the longest-running shareholder activism battles in Asia is coming to an end. Bank of East Asia Ltd., a Hong Kong-based lender, said Friday it intends to pay up to the equivalent of about $373 million to purchase all the shares held by U.S. activist hedge fund Elliott Management Corp. in an off-market transaction.
Inflation a ‘Real Danger to Markets’: Hedge-Fund CEO Klarman (The Street)
Seth Klarman, CEO of hedge-fund manager Baupost, said the firm is hedging against rising prices and interest rates. Inflation is raging, and hedge fund titan Seth Klarman, chief executive of Baupost, says it has reached a dangerous level for financial markets. Consumer prices soared 7% last year, the highest amount for any 12-month period in 39 years. “We don’t know how bad the current bout of inflation will be, but we believe that mounting inflation and the related possibility of materially higher interest rates are posing a real danger to financial markets,” Klarman wrote in a letter to investors obtained by CNBC.
Capri Holdings Attracting Hedge Fund Attention (Hedge Week)
Hedge funds Senvest Management and Greenlight Capital are betting on Capri Holdings, according to a report by Seeking Alpha. In an interview with CNBC’s Leslie Picker, Senvest co-chief investment officer Richard Mashaal said he liked the luxury fashion group because he believes the company to be undervalued and sees growth prospects for its underlying brands which include Versace, Jimmy Choo and Michael Kors.
Hedge Fund Alden Appeals to Lee Enterprises Investors in Takeover Bid (MarketWatch)
OMAHA, Neb. — The Alden Global Capital hedge fund is sending its own appeal to shareholders of newspaper publisher Lee Enterprises as part of its campaign to acquire the company. The New York-based hedge fund, which is already one of the nation’s largest newspaper owners, urged Lee LEE, +3.50% shareholders Thursday to support two new directors it has nominated to help reshape the Davenport, Iowa-based company’s strategy. Lee already rejected Alden’s $24 per share offer to buy the company and asked shareholders to help it fight off Alden’s advances.
Friday 1/28 Insider Buying Report: VZ, NEE (Nasdaq.com)
At Verizon Communications, a filing with the SEC revealed that on Wednesday, CEO Hans Erik Vestberg bought 19,000 shares of VZ, at a cost of $52.55 each, for a total investment of $998,450. Bargain hunters are able to grab VZ even cheaper than Vestberg did, with shares trading as low as $51.19 at last check today which is 2.6% under Vestberg’s purchase price. Verizon Communications is trading up about 1% on the day Friday. And at NextEra Energy, there was insider buying on Thursday, by Director Naren K. Gursahaney who purchased 2,000 shares for a cost of $73.62 each, for a trade totaling $147,249. NextEra Energy is trading off about 2.1% on the day Friday. Investors have the opportunity to pick up NEE even cheaper than Gursahaney did, with the stock trading as low as $70.58 at last check today which is 4.1% below Gursahaney’s purchase price.
Highland Capital Management, Llc Buys Lithia Motors Inc, The Kroger Co, Marvell Technology Inc, Sells Xilinx Inc, Nasdaq Inc, Broadcom Inc (Guru Focus)
Memphis, TN, based Investment company Highland Capital Management, LLC buys Lithia Motors Inc, The Kroger Co, Marvell Technology Inc, NRG Energy Inc, Fortinet Inc, sells Xilinx Inc, Nasdaq Inc, Broadcom Inc, Becton, Dickinson and Co, Alibaba Group Holding during the 3-months ended 2021Q4, according to the most recent filings of the investment company, Highland Capital Management, Llc. As of 2021Q4, Highland Capital Management, Llc owns 338 stocks with a total value of $1.8 billion.
