Macro hedge funds: A Steady Ship in Stormier Seas (UBS.com)
Recent US economic data has clouded the outlook for US monetary policy. The US ISM Services purchasing managers index fell to 50.3 in May, below consensus and indicative of flat service sector growth. US labor data was mixed. While US nonfarm payrolls outshone expectations for the fourteenth consecutive month in May, a monthly fall in the household survey and uptick in the unemployment rate to 3.7% offered a hint of slackening in a tight US jobs market. We believe that persistent risks may mean macroeconomic uncertainty will stay high. Gauges of US equity market volatility arguably do not reflect these risks—the VIX Index stands below 15 and at post-pandemic lows. And with the potential for higher volatility in less liquid markets over the coming “holiday” months, investors concerned about swings in their portfolio’s value should consider diversifying with alternative investments like hedge funds.
Sequoia Is Splitting Into Three VC Firms (Forbes)
The world’s most storied global venture capital firm is breaking itself up. Sequoia, known for early investments in U.S. tech companies such as Airbnb, WhatsApp and Zoom in the U.S., as well as international heavyweights like ByteDance and GoTo via its China and India funds, is splitting into three fully distinct firms. Sequoia’s global leadership confirmed the news in a letter to limited partners on Tuesday morning signed by the leaders of the three firms, Roelof Botha, Neil Shen and Shailendra Singh. The resulting firms — Sequoia Capital representing the U.S. and Europe, HongShan in China and Peak XV Partners in India and Southeast Asia — plan to complete the separation “no later than” March 2024.
Crypto Hedge Fund Arca Axes 30% of Staff (Hedge Week)
Ongoing challenges in the digital assets market, including regulatory uncertainty, have prompted Los Angeles-based cryptocurrency hedge fund Arca to lay off 30% of its staff, according to a report by CoinDesk. The report quotes a spokesperson for the firm as saying: “Growth has been hard to predict in this extended bear market and uncertain regulatory environment. Our headcount adjustment will allow us to preserve capital and resources giving us a greater chance of success until this sector experiences a shift in sentiment and a clear regulatory picture.”
Over $4M Bet On Diversified Healthcare Trust? Check Out These 4 Stocks Under $5 Insiders Are Aggressively Buying (Benzinga)
Diversified Healthcare Trust: The Trade: Diversified Healthcare Trust (DHC) Director Adam D Portnoy acquired a total 3,154,641 shares an average price of $1.38. To acquire these shares, it cost around $4.34 million. Rain Oncology: The Trade: Rain Oncology Inc. (RAIN) 10% owner Tang Capital Partners LP acquired a total of 1,088,273 shares at an average price of $1.06. The insider spent around $1.16 million to buy those shares.
Tuesday 6/6 Insider Buying Report: BOH, EIG (Nasdaq.com)
At Bank of Hawaii, a filing with the SEC revealed that on Thursday, Robert W. WO Jr. bought 6,500 shares of BOH, at a cost of $39.85 each, for a total investment of $259,045. So far WO Jr. is in the green, up about 7.8% on their buy based on today’s trading high of $42.96. Bank of Hawaii is trading up about 2.5% on the day Tuesday. This purchase marks the first one filed by WO Jr. in the past year. And at Employers Holdings, there was insider buying on Thursday, by CEO Katherine H. Antonello who purchased 6,880 shares at a cost of $36.46 each, for a total investment of $250,845. Before this latest buy, Antonello made one other buy in the past year, purchasing $491,530 shares at a cost of $37.81 a piece. Employers Holdings is trading up about 1.7% on the day Tuesday. So far Antonello is in the green, up about 5.3% on their purchase based on today’s trading high of $38.38.
