Hedge Fund Challenges $14 Billion in Illinois Debt as Unconstitutional (The Wall Street Journal)
A hedge-fund manager claiming Illinois has piled up more debt than its constitution permits is suing Gov. J.B. Pritzker and other state officials in an effort to wipe out $14.3 billion in municipal bonds. New York-based Warlander Asset Management LP and John Tillman, chief executive of the conservative Illinois Policy Institute think tank, said Illinois broke a state rule prohibiting deficit financing by selling debt in 2003 to close a pension gap and in 2017 to pay down government vendors.
Billionaire Ray Dalio: U.S. Economy Must Change or There will be ‘Conflict’ Between the Rich and Poor (CNBC)
The United States must change its economic system or there will be conflict between the rich and the poor. So says billionaire hedge fund guru and finance entrepreneur Ray Dalio. “Capitalism needs to be reformed. It doesn’t need to be abandoned. So, like anything, like a car, like anything, a plane, a school system, anything, it needs to be reformed in order to work better,” Dalio said on CBS’ “60 Minutes” Sunday.
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Copper Street Capital selects Linedata Portfolio Management (Hedge Week)
Copper Street Capital, a UK-based event-driven hedge fund manager, has selected Linedata’s comprehensive portfolio management and compliance solution, Linedata Global Hedge. Copper Street says it chose Linedata after a rigorous review and will benefit from enhanced oversight, scalability and workflow automation across a range of requirements, including real-time P&L and exposure, fund administrator reconciliation and robust compliance. “Copper Street Capital drives superior returns for its investors utilising event driven strategies in the global developed financial service sector. Funds can be invested cross asset class in both equities and fixed income instruments, with an ability to be both long and short.
Bill Miller’s Hedge Fund Floats on the Amazon, Bitcoin Wave Surging 46% (Coin Speaker)
Bill Miller, the legendary investor is bringing his winning experience to the hedge fund business. According to an investor document published by Bloomberg, Miller’s fund that launched three years ago gained 46% in the first six months of 2019. That is enough to make heads turn in the hedge fund industry. A while back, we reported that Miller allocated 30% of the hedge fund portfolio in Bitcoins. That investment proved worthwhile with Bitcoin exploding to an all-time high in December 2017. The investor is known to gain success by following the same playbook that he implemented during his 30-year run at Legg Mason. He picked beaten-down securities trading at large discounts to their intrinsic value.
Opinion: Watch Out, America: China and Russia are Stockpiling Gold (Market Watch)
‘Something’s going on here’ What’s going on? And, more interestingly, perhaps, is it worth a trade? London hedge fund manager Crispin Odey, at Odey Asset Management, says the precious metal drew his eye during the stock market meltdown last fall. “Gold should have gone down last year,” he says from his plush offices in London’s Mayfair district. “It should have ended the year around $1,000 [an ounce]. Instead it was $1,200. I thought, ‘Something’s going on here.’ ”
Does Jerome Powell Control the Fate of Hedge Funds? (MorningConsult.com)
The effect of interest rates on the stock market has taken center stage in recent months, as President Donald Trump has not held back on his view that Federal Reserve Chairman Jerome Powell has curtailed U.S. economic expansion. Powell’s actions likely also caused institutional investors, such as public pensions and college endowments, to reexamine their exposure to public markets, and consider allocations to alternatives such as hedge funds, which are often considered a defense against interim monetary policy changes.
Hedge Funds Chasing 400% Return Show Risk in China’s Wild Market (Bloomberg)
As China’s share market was cratering at the end of 2018, Liu Yue bet almost his entire fund on just two stocks. It could have ended in tears, but he knew his firm had a once-in-a-lifetime opportunity to snare the ultimate prize for a hedge fund in China — being crowned champion of the year. His bet paid off and Guangdong Chaokin Investment Co. has since been swamped with investor inquiries. Many of his peers haven’t been as lucky.
