Bridgewater’s Ray Dalio Expects Stocks to Fall 20% if Rates Rise to 4.5% (Reuters)
Sept 15 (Reuters) – Billionaire Ray Dalio, founder of one of the world’s biggest hedge funds, has predicted a sharp plunge in stock markets as the U.S. Federal Reserve raises interest rates aggressively to tame inflation. “I estimate that a rise in rates from where they are to about 4.5 percent will produce about a 20 percent negative impact on equity prices,” Bridgewater Associates‘ founder Dalio wrote in a LinkedIn post on Tuesday.
Glen Point CIO, Founder Charged With FX Manipulation, Fraud (AI-CIO.com)
The co-founder and CIO of a U.K.-based hedge fund has been charged in Manhattan federal court with manipulating exchange rates to fraudulently trigger a $20 million payment under a barrier options contract. According to an unsealed indictment, Neil Phillips, the co-founder and CIO of Glen Point Capital, allegedly manipulated the exchange rate between the dollar and the South African rand to unlawfully obtain millions of dollars in payments for his hedge fund under an options contract.
2022 – A Trading Year for Svelland (Hedge Nordic)
Stockholm (HedgeNordic) – You’ll probably have a hard time guessing the top performing Nordic hedge fund over the last years. Nope, not that one. And not that one either. The top performing fund in the Nordic hedge fund universe over the past five years is Svelland Capital’s Svelland Global Trading Fund run by Norwegian Tor A. Svelland, who launched the London-based commodity-focused manager in 2016. Svelland started his career in the shipping sector and later worked as Head of Freight Derivatives at Oslo-based Carnegie, Head of Commodities at Pareto Securities, and Proprietary Trader in commodities and freight at Goldman Sachs, and then at Trafigura. He then decided to set up his own hedge fund Svelland Global Trading Fund to exploit investment opportunities in commodity and related markets.
Source: pexels
U.S. Tech-focused Hedge Funds Brace For Heavy Losses Amid Market Slide (International Business Times)
U.S. hedge funds that focus broadly on technology investments are bracing for heavy losses this year as gloomier economic data sparked a fresh selloff this week, shrinking hopes of clawing back any significant ground in coming months. For fund managers, including those gathered at one of the industry’s biggest conferences in New York, any optimism from last week’s market rally was sapped by a fresh sucker punch on Tuesday as the S&P 500 slid 4.3%. Many funds were already sitting on declines of 30% or more.
Hedge Fund Industry Faces Consolidation as Performance Wanes (Opalesque.com)
The hedge fund industry could be headed for a major consolidation, according to panelists at the SALT Conference, which just wrapped up in New York. Significant asset outflows driven by underperformance are putting pressure on even well established funds. As a result, the war for talent is heating up. Ilana D. Weinstein, Founder & Chief Executive Officer at executive search firm The IDW Group said that the hedge fund industry is in the “early innings of an industry correction and consolidation.” She argues that much of what is left at many large hedge funds is founder capital. For these funds to rebound, performance will have to significantly improve which could take years.
US buyout Funds are Paying More for Less (Preqin)
As competition in the US buyout market intensifies, funds are paying a whole lot more for deals. That’s true not just in absolute terms, but in relative terms as well. Let’s start with absolute numbers. At the end of 2020, the average deal value for a US-based asset was $1.05bn, which is an annual increase of 10% on average since 2011. But 2021 saw a much sharper rise when the average deal value spiked by $307mn, or 29.4%. Not only are fund managers faced with higher prices – they’re also paying more for less.
Speculative Hedge Fund Trades Behind Won’s Drop, Say Forex Dealers (Hedge Week)
Bets by a number of global hedge funds on further falls in the value of the won are behind the South Korean currency’s continuing fall in value, according to a report by Korea Economic Daily. The report cites foreign exchange dealers as claiming that a continued decline in the value of the currency, which recently hit a 13-and-a-half year low is attributable to bets by multiple global funds, including the the world’s largest hedge fund Bridgewater Associates. The funds have reportedly sold the won in offshore non-deliverable forward (NDF) markets, in which they would buy it back in the coming months at pre-agreed rates.
Thursday 9/15 Insider Buying Report: VVX, SRPT (Nasdaq.om)
On Wednesday, V2X’s, Dino M. Cusumano, made a $15.00M purchase of VVX, buying 375,420 shares at a cost of $39.96 a piece. So far Cusumano is in the green, up about 4.5% on their purchase based on today’s trading high of $41.74. V2X is trading up about 3% on the day Thursday. And at Sarepta Therapeutics, there was insider buying on Wednesday, by Director Michael Andrew Chambers who purchased 57,100 shares at a cost of $104.43 each, for a trade totaling $5.96M. Before this latest buy, Chambers made one other purchase in the past twelve months, buying $5M shares for a cost of $108.28 each. Sarepta Therapeutics is trading off about 0.1% on the day Thursday. Chambers was up about 4.0% on the purchase at the high point of today’s trading session, with SRPT trading as high as $108.56 at last check today.
Tesla, Dell And 1 Other Technology Stock Insiders Are Selling (Benzinga)
Tesla: The Trade: Tesla, Inc. (TSLA) Chief Financial Officer Zachary Kirkhorn sold a total of 3,750 shares at an average price of $300.59. The insider received around $1.13 million from selling those shares. Dell Technologies: The Trade: Dell Technologies Inc. (DELL) Pres., Glob. Sales & Cust. Ops William Scannell sold a total of 27,536 shares at an average price of $40.20. The insider received around $1.11 million from selling those shares.
10 Blue Chip Stocks to Buy According to Billionaire Jim Simons (Insider Monkey)
In this article, we discuss 10 blue chip stocks to buy according to billionaire Jim Simons. You can skip our detailed analysis of Renaissance Technologies’ strategy and the current market outlook and go directly to 5 Blue Chip Stocks to Buy According to Billionaire Jim Simons. Jim Simons is a leading mathematician and investor who this year appeared on the Forbes list of U.S. billionaires, ranking 48th, with a net worth of $29 billion. He is the founder of Renaissance Technologies, a Setauket, New York-based hedge fund that manages. Its signature Medallion fund has delivered average annual returns of about 40% since 1988 and has paid him about $12 billion in cash distributions since 2006.
