Bridgewater’s Risk-Parity Shift Jolts a $400 Billion Quant Trade (Bloomberg)
The $400 billion corner of quant investing known as risk parity has a history of doubt and division, and Bridgewater Associates has started a new chapter. Ray Dalio’s $138 billion asset manager has tweaked its version of the strategy by moving into alternatives to conventional bonds as yields hit historic lows, a person familiar with the matter has confirmed. The shift, telegraphed by the firm in a July report, drives a new wedge between Bridgewater and risk-parity purists and speaks directly to concerns that have long dogged the systematic investing approach.
Point72, the firm Investing Hedge Fund Mogul Steven A Cohen’s Personal Wealth, Gets into Healthcare (MSN)
Point72 Ventures, the early stage investment firm that’s now solely investing the personal wealth of the multi-billionaire hedge fund magnate Steven A. Cohen, is getting into healthcare investing. The firm has hired Scott Barclay, a former partner at the life sciences and frontier technology investment firm, DCVC, to run its new healthcare practice. Since the investment firm is more like a family office than a traditional fund with limited partners, it’s hard to gauge the size of the firm’s commitment to healthcare — even from its partners. But a back of the envelope calculation should see the firm committing roughly $300 million to its healthcare efforts, according to Point72 Ventures managing partner, Matthew Granade.
Millionaire Boris Johnson Backer Criticises Politicians for ‘Unwillingness’ to Allow a Recession (TheNewEuropean.co.uk)
Millionaire hedge fund manager Crispin Odey has criticised politicians for an ‘unwillingness’ to allow a recession, claiming the government had spent too much on the response to the coronavirus pandemic. Odey said the combined costs – estimated at around £350 billion – was too high for a spend on preventative action, suggesting that a figure of £12.5 billion was more appropriate, even if the death toll rocketed to 500,000 people.
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Former HSBC UK Funds Chief Goes to EdenTree (FNLondon.com)
Andy Clark, the former UK chief executive of HSBC Global Asset Management, has been recruited to lead the Church-affiliated ethical fund manager EdenTree. Clark will join on 14 September, the firm said in a statement on 2 September, taking the reins from Sue Round, the firm’s deputy chair who has been filling in as CEO. Round is also one of the UK’s longest-serving fund managers, having helmed EdenTree’s Amity UK fund for 32 years.
Warren Buffett’s Berkshire Hathaway has Made Almost $100 billion on Apple Thanks to its Record Stock Rally (Business Insider)
Warren Buffett‘s Berkshire Hathaway has made almost $100 billion from its Apple investment in less than five years. The famed investor’s conglomerate owns around 981 million Apple shares following the four-for-one stock split, giving it a roughly 5.7% stake in the tech titan. Those shares were worth about $132 billion at the close of trading on Tuesday, and Berkshire spent about $35 billion to build the position between 2016 and 2018, meaning it has scored a $97 billion gain – close to three times its initial investment.
Marble Ridge Swaps Counsel in Neiman Marcus Bankruptcy (Reuters)
Marble Ridge and its founder Dan Kamensky have brought in new lawyers to represent them in the Neiman Marcus bankruptcy as they deal with the aftermath of Kamensky’s interference with a potential bid for certain of the luxury retailer’s assets. The hedge fund, which has announced plans to wind down operations in light of Kamensky’s actions, brought in Foley & Lardner to replace bankruptcy boutique Parkins Lee & Rubio, according to court papers filed in Houston bankruptcy court on Monday. Kamensky has retained Haynes and Boone, which will also replace Parkins, according to Monday’s court papers.
When Young Beats Old (Hedge Nordic)
Stockholm (HedgeNordic) – Adrigo Hedge, once the flagship hedge fund of Adrigo Asset Management, will be merged into the stronger-performing Adrigo Small & Midcap L/S on October 1. Staffan Östlin (pictured), who has been managing Adrigo Small & Midcap L/S since its inception in November 2017, took over the management of Adrigo Hedge following East Capital’s acquisition of Adrigo Asset Management last year. “In order to streamline our fund offering and increase operational efficiency within portfolio management, Adrigo Hedge will be merged into Adrigo Small & Midcap L/S on 1 October 2020,” according to a press release by Adrigo, which is now the absolute return and specialized strategies platform of East Capital. Whereas Adrigo Small & Midcap L/S has generated an annualized return of 15 percent since launching in November of 2017, Adrigo Hedge has accumulated a cumulative loss of almost 14 percent over the same period.
Investors Integrating ESG Can Indeed Do Well by Doing Good (Preqin.com)
A key question for LPs considering environmental, social, and governance (ESG) and impact investment opportunities is whether they can do well by doing good. Some LPs worry that by focusing on ESG and impact investing, the range of deals available to them is narrower. As a result, there may be missed opportunities to generate the returns they might otherwise enjoy. But as the ESG and impact investing universe continues to expand, how valid is this concern? Should investors expect a trade-off between values and performance?
The Estee Lauder Inc (EL) President and CEO Fabrizio Freda Sold $40.7 million of Shares (Guru Focus)
President and CEO of The Estee Lauder Inc, Fabrizio Freda, sold 183,822 shares of EL on 08/31/2020 at an average price of $221.29 a share. The total sale was $40.7 million. The Estee Lauder Companies Inc is a beauty products manufacturer providing Skin care, Makeup, Fragrance and Hair care services. The Estee Lauder Companies Inc has a market cap of $79.73 billion; its shares were traded at around $220.99 with a P/E ratio of 120.77 and P/S ratio of 5.66.
Wednesday 9/2 Insider Buying Report: IMBI, BMRN (Nasdaq.com)
At iMedia Brands, a filing with the SEC revealed that on Friday, Director Eyal Lalo bought 256,000 shares of IMBI, for a cost of $6.25 each, for a total investment of $1.6M. Lalo was up about 16.2% on the purchase at the high point of today’s trading session, with IMBI trading as high as $7.26 in trading on Wednesday. iMedia Brands is trading up about 3.1% on the day Wednesday. Before this latest buy, Lalo made one other buy in the past year, purchasing $1.41M shares at a cost of $2.04 a piece. And on Monday, Director David E. I. Pyott purchased $1.00M worth of BioMarin Pharmaceutical, purchasing 12,800 shares at a cost of $78.26 a piece. This purchase marks the first one filed by Pyott in the past year. BioMarin Pharmaceutical is trading up about 2.2% on the day Wednesday. Investors can pick up BMRN at a price even lower than Pyott did, with shares trading as low as $76.12 at last check today which is 2.7% under Pyott’s purchase price.
A Director at Global Indemnity (NASDAQ: GBLI) is Buying Shares (Analyst Ratings)
Yesterday, a Director at Global Indemnity (GBLI), Saul Fox, bought shares of GBLI for $14.19M. This recent transaction increases Saul Fox’s holding in the company by 57.15% to a total of $39.61 million. Following Saul Fox’s last GBLI Buy transaction on October 27, 2010, the stock climbed by 7.9%. Based on Global Indemnity’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $179 million and quarterly net profit of $37.55 million. In comparison, last year the company earned revenue of $146 million and had a net profit of $14.66 million. GBLI’s market cap is $333 million and the company has a P/E ratio of 11.90. Currently, Global Indemnity has an average volume of 222.11K.
Ametek Inc (AME) Executive VP – CFO William Joseph Burke Sold $1.7 million of Shares (Guru Focus)
Executive VP – CFO of Ametek Inc, William Joseph Burke, sold 16,418 shares of AME on 09/01/2020 at an average price of $102.05 a share. The total sale was $1.7 million. AMETEK Inc is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. AMETEK Inc has a market cap of $23.42 billion; its shares were traded at around $102.00 with a P/E ratio of 26.42 and P/S ratio of 4.90.
