Billionaire Hedge Fund Founder Ray Dalio Cedes Control of Bridgewater (CNN)
Ray Dalio, the billionaire founder of the world’s largest hedge fund, is stepping down from his role at the firm after 47 years. “I transitioned my control of Bridgewater to the next generation and I feel great about the people and ‘machine’ now in control,” Dalio wrote in a LinkedIn post Tuesday. Dalio, a former Wall Street trader who founded Bridgewater Associates out of his New York apartment in 1975, said the firm would be in the hands of co-chief investment officers Bob Prince and Greg Jensen, as well as co-chief executives Nir Bar Dea and Mark Bertolini.
October will be ‘a Reversal Month’ for Stocks, Suggests Ex-Hedge Fund Manager (Finbold)
Mike Novogratz, the CEO of cryptocurrency investment firm Galaxy Digital, has suggested October might experience some reversal for stocks amid the ongoing Federal Reserve (Fed) interest rate hikes in an attempt to contain the skyrocketing inflation. According to Novogratz, the first few days of October have shown positive signs as the market continues to face instability, he said during CNBC’s Squawk Box show on October 4.
Hedge Fund Sculptor Has Potential Suitors, Och Tells Board (Bloomberg)
Dan Och is escalating his fight with Sculptor Capital Management Chief Executive Officer Jimmy Levin, deepening the fissures in the relationship with his former protege and putting the publicly traded hedge fund firm in play. Och, who co-founded Sculptor before stepping down as CEO in 2018, said he and other founding partners have been asked whether the firm might be open to a strategic transaction “that would not involve current senior management continuing to run the company,” according to a letter to Sculptor’s board that was disclosed Tuesday in a regulatory filing.
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Ackman Endures a Brutal September (Institutional Investor)
The Pershing Square hedge fund CEO has floated a provocative solution for the fund’s ailing stock price. Bill Ackman’s Pershing Square Holdings hedge fund fell 4.5 percent during a brutal September, when the overall market was down a stunning 9 percent. Losses have plagued the hedge fund this year, and it is now down 19.9 percent for the first nine months — an improvement from the end of June, when it was down 26 percent.
Hedge Funds Bet on Pound Rally (Financial News)
Hedge funds have tempered their expectations of the pound’s rise after the mini-budget debacle. Overall they are neutral on sterling’s movement but lean slightly towards it regaining some value. Data from Chicago-based exchange CME and London research firm Macro Hive found that on balance, hedge funds were still net long on the pound, holding 4,000 call option contracts – bets that believe the pound will go up.
A Down 2022, Less Impact Fund Terms More on Returns (Preqin)
As inflation, high rates, and war each take their toll on private capital returns, how managers emerge from the cycle will determine their future success. What impact will current market conditions, which include down equity markets, rising inflation, and rising interest rates, have on alternative assets? Rising rates will for sure have an impact on the cost of capital while inflation will erode returns. But fee terms will generally remain static, irrespective of interest rates and inflation increases.
Odey’s Hedge Fund Gains Surge to 193% on UK Market Turmoil (Bloomberg)
Crispin Odey’s best year ever went to a new level amid tumultuous markets last month. His hedge fund soared about 25% in September, benefiting from his long-running short bets against UK government bonds and pound amid wild volatility sparked by Prime Minister Liz Truss’s plans to enact large-scale tax cuts. The surge boosted his year-to-date gains to 193%, according to a person with knowledge of the matter. His previous best yearly performance was almost three decades ago, when he returned 60% in 1993. A spokesman for the London-based Odey Asset Management declined to comment.
Hedge Funds Go Bottom Fishing in Biopharma (Institutional Investor)
Over the past few weeks, four different life sciences hedge funds have taken stakes of at least 5 percent in more than a half dozen stocks. Is it time to buy? That’s the number-one question facing investors as the stock indices sink ever deeper into bear market territory. One group of investors who have been aggressively making big bets, however, are the managers who specialize in biopharma and life sciences stocks.
Who Is Divya Nettimi? First Women To Launch Billion Dollar Hedge Fund (Shethepeople.tv)
Divya Nettimi worked as a Portfolio Manager at America based global investment company Viking Global and contributed majorly towards managing $4 billion at the company. She left the company in 2021 and recently launched her own hedge fund which became the largest hedge fund to be launched by a woman. On October 3, Nettimi made history as the first women-led firm to launch a hedge fund with more than $1 billion commitment. Her firm, Avala Global, has already started investing cash and will reportedly release the rest by the first quarter.
Tuesday 10/4 Insider Buying Report: BRK.A, MLKN (Nasdaq.com)
At Berkshire Hathaway, a filing with the SEC revealed that on Thursday, Vice Chair Gregory Abel bought 23 shares of BRK.A, at a cost of $408005.87 each, for a total investment of $9.38M. Abel was up about 3.9% on the buy at the high point of today’s trading session, with BRK.A trading as high as $423810.00 in trading on Tuesday. Berkshire Hathaway is trading up about 2.1% on the day Tuesday. Before this latest buy, Abel bought BRK.A on 3 other occasions during the past year, for a total investment of $58.95M at an average of $406527.08 per share. And at MillerKnoll, there was insider buying on Monday, by CEO Andrea Owen who purchased 60,606 shares at a cost of $16.88 each, for a total investment of $1.02M. MillerKnoll is trading up about 8.3% on the day Tuesday. So far Owen is in the green, up about 9.8% on their buy based on today’s trading high of $18.54.
$12.2 Million Bet On WESCO International? 3 Stocks Insiders Are Buying (Benzinga)
WESCO International: The Trade: WESCO International, Inc. (WCC) 10% owner GEI Capital VII, LLC acquired a total of 107,098 shares an average price of $113.98. To acquire these shares, it cost around $12.21 million. Joint Corp: The Trade: The Joint Corp. (JYNT) 10% owner Jefferson Gramm acquired a total of 72,467 shares at an average price of $15.82. To acquire these shares, it cost around $1.15 million.
Insider Buying at Starbucks, Adobe and 3 Other Stocks (247WallSt.com)
Insiders buying stocks generally indicates a positive outlook from investors most in the know. As Peter Lynch once said: “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” With that in mind, here are some companies with recent insider buying. Starbucks (SBUX): In mid-September, Starbucks (US:SBUX) director Richard Allison bought 10,000 shares at $$92.53 or about $925,000. Near the same time, nonexecutive chairman Mellody Hobson bought 54,750 shares at $92.57, or about $5 million. Putting $1 million where your mouth is, is one thing, but $5 million? Hobson has some confidence.
Tiger Global Partner Curtius Leaving Firm Amid Venture Woes (Bloomberg)
John Curtius, a Tiger Global Management partner and head of its software and business-to-business investing practice, is leaving the firm as it struggles with its venture investments. Tiger Global’s private portfolio fell this quarter and it has had to cut valuations every month this year, according to an investor letter seen by Bloomberg. People with knowledge of the firm had speculated for months that Curtius would leave.
