Inflation will Cause Recession, Food Prices to Spiral ‘Much Further’: Hedge Fund Manager (Fox Business)
Hayman Capital Management founder and CIO Kyle Bass joined “Mornings with Maria,” Wednesday, warning that inflation will cause a “significant” recession and food prices to spiral “much further.” KYLE BASS: [The Fed] clearly, they printed too much money during their COVID response… we’re seeing about a 40% move in the price level of just about everything in our lives.
Hedge Fund Billionaire Bill Ackman: Terra was a Crypto Pyramid Scheme (Crypto News Flash)
Terra was crypto’s version of a pyramid scheme, one of the most revered investors on Wall Street has claimed. Bill Ackman, the founder of Pershing Square Capital Management believes that the Terra ecosystem’s business model was unsustainable and relied on money from new investors. Terra’s ecosystem consists of a number of products and protocols, but LUNA and UST were the most popular. LUNA is the native token of the ecosystem while UST is (or was touted to be) a stablecoin that was algorithmically pegged through LUNA minting and burning. It’s now trading at $0.09 while LUNA has nearly crashed to zero.
A Hedge Fund Manager Overseeing $2.2 Billion Sees a ‘Really Bad’ Recession Coming and Thinks Stock Valuations are Still in ‘Stupidville’ — But Says These 4 Cryptos and 5 Chinese Equities are Worth Buying Anyway (Business Insider)
Wall Street has been caught off-guard by this year’s sharp stock market sell-off, but the downturn has been anything but a surprise to Mark Yusko. The founder of North Carolina-based hedge fund Morgan Creek Capital believes that a long-awaited “great unwind” for risk assets is here. “We’re definitely where I thought we would be,” Yusko told Insider in a recent interview.
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Albemarle Asset Management: Best Relative Value Fund Under $500m (Hedge Week)
A difficult market environment gives those managers able to differentiate themselves from an alpha perspective the opportunity to thrive. This also plays into the growing investor demand for high quality boutique managers, offering targeted strategies. “This current environment is difficult, but also presents opportunities,” says Umberto Borghesi, strategist at Albemarle Asset Management, “although the increased uncertainty and its ramifications for the economic outlook are challenging, we can be best prepared for this by sticking to our process and being prepared to act both pre-emptively and after the fact, in order to generate the best possible returns for our clients.”
GME, AMC: Is Bridgewater’s Ray Dalio The New Meme Investor? (The Street)
Are mega hedge funds now buying into “meme mania”? Several financial media outlets have reported lately, with fanfare in some cases, that famed investor Ray Dalio’s Bridgewater Associates has bought GameStop stock GME and AMC Entertainment stock (AMC) – Get AMC Entertainment Holdings, Inc. Class A Report in the first quarter. These headlines, however, can be a bit misleading. I explain below why Bridgewater’s GME and AMC share purchases are likely not an indication that the Connecticut-based hedge fund has been betting big on these stocks heading to the moon.
Hedge Fund Myriad Asset Is Quitting Hong Kong After 11 Years (Bloomberg)
Carl Huttenlocher’s hedge fund firm Myriad Asset Management Ltd. plans to shut its office in Hong Kong, the city where it was founded and based for much of its 11 years, said a person with knowledge of the matter. Myriad made the decision after pandemic-induced curbs made it difficult for Huttenlocher and his portfolio managers to travel, and the fund’s Asian investment underperformed other strategies this year, the person added, asking not to be identified as the information is private. The firm plans to make West Palm Beach, Florida its new base, said the person.
Apollo Takes Stake in Life Sciences VC Firm Sofinnova Partners (Opalesque)
US private equity giant Apollo Global Management is taking a minority stake and partnering with European venture capital firm Sofinnova Partners investment funds that concentrate on European life sciences investments. According to sources, the US buyout giant is taking a 20% stake in the Paris-based business. It plans to provide up to €1bn of additional capital for further growth. Sofinnova is the largest independent European venture capital firm in life sciences, specializing in healthcare and sustainability, with over €2.5bn of total assets under management across its platform of investment strategies.
Honor Roll Q1 2022: Hedge Funds in Asia-Pacific (Preqin)
Q1 2022 was a challenging quarter for Asia-Pacific-focused hedge funds, with the asset class declining 4.29%. In spite of the challenges, many funds still reported strong numbers. Check out our league tables for a detailed look at the top performing hedge funds in Asia-Pacific by strategy and size, as well as the region’s largest allocators.
Tuesday 5/17 Insider Buying Report: TDW, UPWK (Nasdaq.com)
On Monday, Tidewater’s Director, Robert Robotti, made a $3.15M buy of TDW, purchasing 140,113 shares at a cost of $22.49 each. Robotti was up about 24.5% on the purchase at the high point of today’s trading session, with TDW trading as high as $28.01 at last check today. Tidewater is trading up about 8.7% on the day Tuesday. Before this latest buy, Robotti bought TDW on 2 other occasions during the past year, for a total cost of $953,233 at an average of $11.92 per share. And at Upwork, there was insider buying on Thursday, by Director Kevin Harvey who purchased 65,828 shares at a cost of $16.32 each, for a trade totaling $1.07M. This purchase marks the first one filed by Harvey in the past year. Upwork is trading up about 0.8% on the day Tuesday.
Insiders Buy Around $22M Of 2 Stocks (Benzinga)
Insight Enterprises: The Trade: Insight Enterprises, Inc (NSIT) 10% owner Valueact Holdings GP LLC acquired a total of 97,200 shares at at an average price of $99.48. To acquire these shares, it cost around $9.67 million. Six Flags Entertainment: The Trade: Six Flags Entertainment Corporation (SIX) 10% owner H Partners Management LLC acquired a total of 425,000 shares at an average price of $28.86. To acquire these shares, it cost around $12.26 million.
Prominent Hedge Funds Invested in Twitter Before Musk Unveiled Plans (Reuters)
BOSTON, May 17 (Reuters) – Prominent hedge funds, including Point72 Asset Management and Bridgewater Associates, invested in Twitter (TWTR.N) during the first quarter, putting them on course to reap big gains early in the second quarter when billionaire Elon Musk unveiled plans to buy the company. Point72, run by Steven A. Cohen, bought 1.5 million common shares worth $58.8 million while Balyasny Capital Management purchased roughly the same amount, according to regulatory filings and data compiled by Symmetric.io.
Allianz Global Investors and Three Former Senior Portfolio Managers Charged with Multibillion Dollar Securities Fraud (HedgeCo.net)
(HedgeCo.Net) Allianz Global Investors Agrees to Pay More Than $1 Billion to Resolve SEC Charges. The Securities and Exchange Commission (SEC) has charged Allianz Global Investors U.S. LLC (AGI US) and three former senior portfolio managers with a massive fraudulent scheme that concealed the immense downside risks of a complex options trading strategy they called “Structured Alpha.” AGI US marketed and sold the strategy to approximately 114 institutional investors, including pension funds for teachers, clergy, bus drivers, engineers, and other individuals.
