Brevan Howard, DRW Back Fintech Firm Set to Manage Brevan Fund (Bloomberg)
Brevan Howard Asset Management, the $16 billion hedge fund, and quantitative trading group DRW Holdings are buying a minority stake in fintech firm Edge Focus Partners in a bet that consumer lending will continue to expand beyond banks. As part of the transaction, Edge Focus, whose models use machine learning to predict credit-default risk, will run a fund for Brevan Howard that will purchase short- and medium-term loans from lending platforms and other financial institutions.
Hedge Fund Executive Buys New Palm Beach Mansion for $30.7M (Biz Journals)
Jason Capello, the head of hedge fund Mgate Capital, paid $30.72 million for a new mansion in Palm Beach. The 8,981-square-foot home at 1404 N. Lake Way was sold by 1404 Northlake LLC, managed by real estate investor George P. Taylor and Nedim Soylemez in Palm Beach. The price equated to $3,421 per square foot. The home was built on a 0.55-acre lot along the Intracoastal Waterway. The developer bought the land for $8.9 million in 2018.
Elliott Under Fire — Deutsche Poaches BNP Exec — SoftBank’s Miami Digs (Business Insider)
Welcome to Insider Finance. If this was forwarded to you, sign up here. Plus, download Insider’s app for news on the go – click here for iOS and here for Android. On the agenda today: Union groups take aim at activist hedge fund Elliott Management. Deutsche Bank poaches distressed vet from BNP Paribas. SoftBank’s close to inking a new office in Miami. Let’s get started.
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Saba, Redwood Are Among Credit Funds Buying Evergrande Bonds (Bloomberg)
Saba Capital Management, Redwood Capital Management, Contrarian Capital Management and Silver Point Capital are among funds that have built positions in offshore bonds of China Evergrande Group’s ahead of a likely default of the real estate giant. The four investors are among the credit funds that took a position in Evergrande’s $19 billion dollar-denominated notes in recent weeks, as prices fell to about 25% of face value amid uncertainties over the future of China’s second largest developer, according to people with knowledge of the matter who asked not to be identified because the transactions are private.
Norron Embraces the EU Taxonomy (Hedge Nordic)
Stockholm (HedgeNordic) – For almost a year, three of Norron Asset Management’s funds have been reporting the alignment with the EU Taxonomy, a classification system for sustainable economic activities that aims to drive capital flows to sustainable investments. Norron has announced that its entire range of six funds – two fixed-income funds, two hedge funds and two long-only equity funds – is reporting the alignment with the EU Taxonomy. “Now we have the pleasure to announce that we report all of Norron’s funds in accordance with the Taxonomy.”
Man GLG Unveils New Global Sustainability-Focused Long/Short Hedge Fund (Hedge Week)
Man GLG, the discretionary investing unit of London-listed global alternative investment giant Man Group, has launched a new sustainability-focused long/short equity hedge fund which will trade across regions and sectors with a positive ESG bias. The Man GLG RI Global Sustainable Growth Alternative UCITS strategy – which is classified as an Article 8 product under the EU’s Sustainable Finance Disclosures Regulation (SFDR) – is targeting absolute returns. It takes a positive ESG bias in global markets, combining a high-conviction long portfolio of 25-45 stocks with a short book designed to hedge market and factor risk. The short portfolio also aims to boost the alpha generation of the long positions.
