Hedge Fund Manager Kyle Bass: Buckle Your Seatbelts on Oil Prices (Seeking Alpha)
Closely watched hedge fund manager Kyle Bass said Thursday that oil prices could rise “well north of $100” in 2022 as a lack of investment in the hydrocarbon industry meets a surge in demand as the global economy emerges from COVID restrictions. “I think you should buckle your seatbelts,” the founder and chief investment officer of Hayman Capital Management said. “We’re going to see really high prices very soon.”
Perceptive Posts Biggest Loss in Its History (Institutional Investor)
Joseph Edelman’s life sciences firm suffered a rare major setback last year. Perceptive Advisors had a rough 2021.The life sciences and biopharma specialist’s main hedge fund, Perceptive Life Sciences Fund, suffered its worst loss in its 23-year history, dropping nearly 28 percent for the year. Meanwhile, the initial public offering of a company essentially created by Perceptive has so far been a disaster.
Coatue-Backed HR Startup Deel Just Made Its First Acquisition Since the New York Hedge Fund Invested in the Company at a $5.5 Billion Valuation (Business Insider)
Remote hiring startup Deel has made its first acquisition since it landed investment from New York hedge fund Coatue and has tipped the HR tech industry to go through widespread consolidation. The San Francisco-based startup, which makes it easier to hire people in different countries by automating functions like payroll and compliance, has bought US HR software company Roots for an undisclosed fee.
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New York Condo Sells for Close to $190 Million; Hedge-Fund Billionaire Doubles His Money (The Wall Street Journal)
Billionaire investor Daniel Och has sold a Manhattan penthouse overlooking Central Park for close to $190 million, roughly double what he paid just over two years ago, according to people familiar with the deal. The sale is one of the most expensive ever completed in New York. The four-bedroom penthouse spans about 9,800 square feet at 220 Central Park South, according to marketing materials for the property.
Schonfeld Hedge Fund Bankrolls Its New Macro Trading Team With $5 Billion (Bloomberg)
Schonfeld Strategic Advisors allocated $5 billion for a new macro trading unit that will debut next week to take on hedge fund giants including Citadel and Brevan Howard Asset Management. The new group is led by industry veterans Colin Lancaster and Mitesh Parikh and the initial commitment includes leverage, according to a person with knowledge of the matter. The unit will start with 10 portfolio managers and use Schonfeld’s platform to build out the business, said the person, who asked not to be identified because the information is private.
Hedge Funds Wrap 2021 with a 1.26 per cent Gain in December (Hedge Week)
The hedge fund industry returned to monthly gains in December, returning 1.26 per cent for the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions. By comparison, the S&P 500 Total Return Index was up 4.48 per cent in December. For the year, the hedge fund industry posted a 10.32 per cent cumulative return for 2021.
Hedge Funds Keyed to Growth Stocks Stall Out (The Wall Street Journal)
After a profitable run, their performance in 2021 was the worst in years. A major bright spot for the hedge-fund industry in recent years has suddenly darkened as stocks of technology and other fast-growing companies sell off, handing out large losses to some big investors. Hedge funds investing in growth stocks turned in their worst performance in years in 2021, according to portfolio managers and their clients. Many funds were hit by large losses late in the year, with the drubbing continuing into early this week.
Balyasny’s Founders Lay Out their Top Priorities ‘for the Next 20 Years’ While Also Revealing Funny Details About Their First Meeting with Goldman Sachs (Business Insider)
Ask investors about Balyasny and they will describe a $12-billion-in-assets hedge fund that has garnered respect from trading desks around the world for its impressive performance across two decades. But it wasn’t always that way. In a letter to investors marking the Chicago-based firm’s 20th anniversary, Balyasny’s founding partners reveal how badly they nearly blundered their first meeting with Wall Street institution Goldman Sachs when they were first starting out and searching for a prime brokerage partner.
Top Democrat Targets Scaramucci’s SkyBridge, Others in Opportunity-Zone Probe (Bloomberg)
Senate Finance Committee Chairman Ron Wyden is targeting Anthony Scaramucci’s hedge fund SkyBridge Capital, accounting firm Baker Tilly and others in an investigation into whether Opportunity Zones investments are benefitting low-income areas as intended. Wyden sent letters Thursday to several organizations that have invested in Opportunity Zones — low-income areas where investors can qualify for large capital-gains tax breaks for providing funds for real estate and business. In addition to SkyBridge Capital and Baker Tilly, Wyden also sent to Cresset Partners, Hatteras Sky, PTM Partners, Related Group and Shopoff Realty Investments.
Hedge Fund Manager Says ARKK ETF Companies are a Potential ‘Time Bomb’ (CNBC)
David Neuhauser, chief investment officer at Livermore Partners, said on the latest CNBC Pro Talks that he believes the companies held in Cathie Wood’s ARK Innovation ETF could be a potential “time bomb.”
Pershing Square Share Price Recovery Faces An Uphill Task (InvestingCube)
The Pershing Square Holdings share price has had a rough time this year. The stock is trading at 2,920p, which is about 6% below the highest point in December last year. Still, the shares are about 23% above where it started the year in 2021. Meanwhile, the Pershing Square Tontine Holdings is trading at $20, which is significantly lower than its 52-week high of $34. Pershing Square Holdings is a closed-end fund run by Bill Ackman, the well-known Wall Street billionaire. It is managed by his hedge fund, Pershing Square Capital. It is also a member of the blue-chip FTSE 100 index. The fund tracks the performance of the flagship fund managed by Ackman.
Thursday 1/13 Insider Buying Report: MACK, ASO (Nasdaq.com)
On Tuesday, Merrimack Pharmaceuticals’ Director, Noah G. Levy, made a $421,192 buy of MACK, purchasing 105,949 shares at a cost of $3.98 each. Levy was up about 15.5% on the buy at the high point of today’s trading session, with MACK trading as high as $4.59 at last check today. Merrimack Pharmaceuticals is trading up about 3.9% on the day Thursday. This purchase marks the first one filed by Levy in the past year. And on Monday, Director Brian T. Marley bought $394,600 worth of Academy Sports & Outdoors, buying 10,000 shares at a cost of $39.46 a piece. Academy Sports & Outdoors is trading up about 2.9% on the day Thursday. Marley was up about 5.1% on the buy at the high point of today’s trading session, with ASO trading as high as $41.46 at last check today.
CEO Adam Aron Sells AMC Stock. Should Shareholders Care? (The Street)
AMC Entertainment (AMC) – stock hasn’t performed very well thus far in 2022. At last check, it’s fallen more than 20% since the first trading session of the year – despite plenty of positive sentiment among its shareholders on the Reddit forums.
Ex-Lazard Banker May Dodge Prison in Frankfurt Insider Trading Case (Bloomberg)
A former Lazard Ltd. banker who passed confidential information in a nearly $10 million-insider trading case should be spared prison because he admitted responsibility and helped expose the scheme, German prosecutors said. The ex-banker who can only be identified as D.R. is accused of giving the information to his co-defendant M.R who generated trade gains of 8.5 million euros ($9.8 million). While D.R. should be shown leniency, M.R. should go to prison for 4 years and 10 months, Prosecutor Markus Weimann said in closing arguments at the Frankfurt Regional Court.
