Ray Dalio Highlights the ‘Biggest Mistake’ Investors Regularly Make (Mint Genie)
Ray Dalio, one of the leading figures in global finance and founder of Bridgewater Associates – the world’s largest hedge fund, has given aspiring and seasoned investors alike a critical piece of advice: don’t forget history. The Mistake Many Overlook: Dalio suggests that many investors often neglect a fundamental lesson: historical market cycles tend to repeat. “People have to understand that bubbles occur and are followed by busts,” Dalio shared in an interview.
Sculptor Drama Raises Questions about Hedge Fund Value (Axios)
How much is a big hedge fund worth, with neither its founder at the helm nor his hand-picked successor? The answer seems to be roughly $731 million — the amount that a group led by Boaz Weinstein is bidding for Sculptor, the hedge fund formerly known as Och-Ziff. Why it matters: Hedge funds, as companies, tend to be notoriously terrible investments. But once they’re established and have reached a certain size, they do tend to retain something money managers value quite highly.
From Buffett to Soros, the Five Most Profitable Stock Market Plays in History (El Pais)
Michael Burry of The Big Short fame is back in the headlines this summer for gambling more than 90% of his portfolio on a market downturn. The eccentric hedge fund manager, who accurately predicted the 2008 subprime mortgage crisis, is the only Wall Street figure to have a film made in his honor; the 2015 movie by Adam McKay chronicles how this former doctor struck gold by taking ultra-speculative positions against the U.S. mortgage derivatives market. When the housing market, based on high-risk subprime loans, collapsed in 2008, Burry became a millionaire.
$90k for Three Months’ Work: How Citadel Gets the Best Graduates (AFR.com)
To intern at Ken Griffin’s hedge funds, graduates get lured with luxury hotels and massive salaries, but they have to beat 69,000 others for the privilege. In a hotel ballroom overlooking the South China Sea, 24-year-old Taylor sits with 13 other university students in hoodies and sneakers coding away on laptops during their school break. The two jacked-up security guards sitting outside the hall signal this is no ordinary summer camp: the students flew business class from as far away as California and Singapore to spend several nights at the five-star Fullerton Ocean Park Hotel in Hong Kong. Trays of crab meat salad, mini croque monsieurs and skewers of prosciutto and melon sit nearby.
Veteran Fund Manager John Bennett Hanging Up Boots to Focus on Rangers FC (Hedge Week)
John Bennett, director of European equities at Janus Henderson, has announced that he will retire form the company in a year’s time to focus on running Glasgow Rangers FC, as chairman of the board of the club he has supported since childhood, according to a report by FT Advisor. Bennett, who is manager of the Janus Henderson Continental European and Pan-European funds, roles he has held since 2011 when his previous company Gartmore was acquired by Janus Henderson, will work closely with the existing team to transition his responsibilities ahead of his departure in August 2024.
Arrow Electronics Stake Increased by Hedge Fund Inceptionr LLC (ClaytonCountyRegister)
Inceptionr LLC has increased its stake in Arrow Electronics, Inc. by 76.6% in the first quarter of this year, according to the company’s recent Form 13F filing with the SEC. The hedge fund now owns 9,304 shares of Arrow Electronics, worth $1,162,000. This increase in stake suggests that Inceptionr LLC sees potential in the technology company. Other hedge funds have also made changes to their positions in Arrow Electronics. Panagora Asset Management Inc. raised its stake by 12.3% during the first quarter, while Blair William & Co. IL, Prudential PLC, Cetera Investment Advisers, and Brown Brothers Harriman & Co. all acquired new positions in the company.
New SEC Hedge Fund Rules Not Expected to Trouble Crypto Firms (Crypto.News)
New rules instituted by the U.S. Securities and Exchange Commission (SEC) to regulate the private funds industry are not expected to affect crypto companies. The new rules, voted 3-2 on Aug. 30 by SEC commissioners along party lines, will impact hedge funds, private equity, and certain venture capital funds. However, they seem to have piqued the interest of asset managers overseeing crypto versions of private equity funds as they navigate the possible implications.
Hedge Funds Drop Short Trades on U.S. Regional Banks – Goldman (Reuters)
Hedge funds ditched short bets against U.S. regional banks as of the end of August and turned bullish on the broader U.S. financial sector, according to a Goldman Sachs (GS.N) note, just as bank stock prices began to rise. U.S. financial services companies including banks, trading firms and those working in capital markets were among the most sought-after stocks in the week ended Sept. 1, according to the note by Goldman’s prime brokerage desk, which serves hedge funds.
Friday 9/1 Insider Buying Report: PRAA, LFMD (Nasdaq.com)
At Pra Group, a filing with the SEC revealed that on Tuesday, Director Steven D. Fredrickson bought 26,000 shares of PRAA, for a cost of $19.31 each, for a total investment of $502,060. So far Fredrickson is in the green, up about 3.2% on their purchase based on today’s trading high of $19.92. Pra Group is trading up about 1.6% on the day Friday. And on Thursday, Director Bertrand Velge bought $501,018 worth of LifeMD, buying 132,072 shares at a cost of $3.79 each. Before this latest buy, Velge purchased LFMD at 4 other times during the past twelve months, for a total cost of $669,860 at an average of $2.34 per share. LifeMD is trading up about 10.9% on the day Friday. Velge was up about 13.6% on the buy at the high point of today’s trading session, with LFMD trading as high as $4.31 at last check today.
Insider Alert: Lyft Director Buys Nearly 97,000 Shares After Earnings (Benzinga)
Shares of Lyft Inc (LYFT) are trading higher Tuesday after a Form-4 was filed with the SEC showing a Lyft insider purchased stock. Here’s what you need to know. What Happened: Prashant “Sean” Aggarwal, a lead independent director at the San Francisco-based ride share company, purchased 96,900 shares at an average price of $10.34 per share for a total transaction valued at more than $1 million.
