Report: Steven Cohen’s Point72 to Take Out $750M from NY Hedge Fund (Stamford Advocate)
STAMFORD – The Steven Cohen – founded hedge fund Point72 is reportedly pulling out the $750 million investment it made last year in an embattled hedge fund run by one of Cohen’s former colleagues. Stamford-based Point72 will redeem its investment “in portions over time, starting shortly,” according to unnamed sources cited by Bloomberg.
Billionaire Investor Ray Dalio Breaks Down the ‘Very Difficult Trade-Off’ the Fed Must Make to Fight Inflation – and Tells Us How to Diversify a Portfolio in this Environment (Business Insider)
An interest rate that controls inflation is too high for financial markets, Ray Dalio says. With inflation at 7%, a projected interest rate of 2% by December won’t rectify the problem. He advises investors to stay away from cash and debt assets and instead diversify. The Federal Reserve is meeting this week to start scaling back the economic support it has provided since the outbreak of the COVID-19 pandemic. Central to this meeting is a widely expected interest-rate hike on Wednesday, its first adjustment since it cut rates nearly to zero in March 2020.
South African Hedge Fund Benefits from Long Book in February (Opalesque)
A hedge fund in Johannesburg that focuses on South African equities benefited from its long book in February and remains buoyant about the country’s economic prospects. The 36ONE Offshore Portfolio, a Caymans-domiciled feeder fund that feeds into an equity long/short hedge fund with a low net equity bias, invests predominantly in South African listed equities and other financial instruments. The $63m fund is up 2% YTD after returning 1.1% in February, annualising 10.3% since its May 2008 inception, with an annualised volatility of 5.8%.
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Hedge Funds Cut Both Long and Short Bets on US Stocks (Hedge Week)
Prime brokers are reporting cuts to both long and short position in US equities by their hedge fund clients as managers look to mitigate the impact of big swings in US markets brought on by Russia’s invasion of neighbouring Ukraine. According to a report by The Financial Times, fund clients of some of the largest Wall Street banks, including Morgan Stanley, Goldman Sachs and JPMorgan Chase, have moved rapidly to close out bets on either rising or falling prices in what Charlie McElligott, a strategist on Nomura’s trading desk is quoted as calling a ‘nowhere to hide market’.
Chelsea Sale: Chicago Cubs Owners and Citadel Billionaire Ken Griffin Team Up to Bid for Champions League Holders (CNBC)
The owners of the Chicago Cubs and Ken Griffin, the billionaire hedge fund tycoon, have joined forces to table a blockbuster bid for Chelsea Football Club. Sky News can exclusively reveal that the Ricketts family and Mr Griffin have formed an investment group that will lodge a formal offer for last season’s Champions League winners on Friday – the deadline set for bids to be in.
