Managers
Hedge funds are continuing to up their bearish bets on higher US bond yields and signs are emerging that the size and pace of this collective wager is reaching extreme levels according to a report by Reuters.
The report says the latest Commodity Futures Trading Commission report – the first snapshot of investor positioning since Fed chair Jerome Powell’s Jackson Hole commitment to get inflation back on target – shows funds increased bearish bets on Treasuries across the curve.
Net short position in two-year futures are up to 281,600 contracts from 241,143 contracts, the biggest bearish bet on two-year bonds
Hedge funds including Renaissance Technologies, DE Shaw, and Bridgewater bought stock in Berkshire Hathaway worth more than $900 million in the second quarter of the year, according to a report by The Financial Times.
The report cites securities filings as revealing that quant funds dominated the list of shareholders adding to their holdings in Warren Buffet’s conglomerate during Q2 with the computer-driven investment groups reportedly seeing Berkshire Hathaway’s shares as relatively inexpensive based on its earnings compared with many other companies.
The funds have primarily purchased Berkshire’s class B stock, which carries fractional economic and voting rights compared with A
Haidar Capital’s Haidar Jupiter Fund saw a gain of 29.6% in the four weeks to 26 August, taking returns so far this year to over 225%, according to a report by Bloomberg.
The report says that Haidar is among a group of macro trading firms which specialise in predicting economic trends and betting across asset classes, that are currently cashing in on attempts by central banks to take soaring inflation rates.
According to a letter to investors, most of Haidar’s gains through July came from profitable fixed income and commodities bets.
The report cites an investor document as revealing that
Caravel Capital Fund, an event-driven market-neutral hedge fund based in Nassau, The Bahamas. is now open to accredited US investors following the appointment of Genesis Fund Services Limited as the fund’s administrator.
Financial services company Hargreaves Lansdown has attracted the attention of short-sellers, with a record 5.69% of the company’s shares on loan to hedge funds including AQR Capital Management, Hound Partners and Marshall Wace, according to a report by This Is Money.
The short positions equate to a £230 million bet against against the firm as it struggles to sustain the boom it witnessed during the pandemic.
The report says official data shows that short positions in Hargreaves Lansdown have roughly doubled in the past six months.
Hargreaves Lansdown, was among a group of trading and investment platforms including AJ Bell
Bridgewater Associates, the hedge fund run by billionaire investor Ray Dalio is expanding its presence in the Asia-Pacific region with the opening of a new office in Singapore, according to a report by FinewsAsia.
The new office, in Singapore’s central business district, will be headed up by Chip Packard, Eurasia head of client services, and Margaret Wang, head of Bridgewater Associates (Singapore). The initial 12-strong team comprises both existing employees from the firm’s US headquarters as well as new local hires in Singapore.
Bridgewater, regards as the world’s largest hedge fund with around $150 billion in assets under management already
Assets at Lone Pine Capital have plunged by 43% to $167 billion after the firm’s hedge and long only funds both racked up losses of over 30% so far in 2022, according to a report by Bloomberg.
Concerns over political instability in Italy have prompted hedge funds to ramp up their bets against the country’s government bonds to the highest monthly level seen since the global financial crisis, according to a report by the Financial Times.
The report cites data from S&P Global Market Intelligence as revealing that investors have borrowed bonds worth more than €39 billion this month as they bet on a fall in prices due to the ongoing political uncertainty and economic turmoil caused by the surge in European natural gas prices following Russia’s invasion of neighbouring Ukraine.
Italy enjoyed a period of relative
Some, but not all, US tech stocks are back in favour with hedge funds, according to a report by Bloomberg, with managers betting big on megacaps while reducing their overall holdings.
The report cites data released by Goldman Sachs as revealing that the focus was on “favoured names” in Q2 with conviction now back at a level last seen prior to the global pandemic.
Amazon.com Inc overtook Microsoft Corp as the most popular long position, while bets on Nvidia Corp, Apple Inc, Atlassian Corp and Tesla Inc have also all increased.
The average weightings of the top 10 holdings jumped
Julian Robertson, founder of Tiger Management and the mentor to a generation of ‘Tiger Cub’ hedge fund managers, has died at the age of 90.
Fraser Seiten, a longtime spokesperson for the billionaire investor, said on Tuesday that Robertson passed away at his home in New York from “cardiac complications”.
Roberston founded Tiger Management in 1980 with $8.8 million and grew the business to around $22 billion by mid-1998 with average annual returns of 32%. He shuttered the firm’s six funds in 2000 after assets dwindled to $6 billion over an 18 month period following a losing bet on the
