Managers
Nine hedge funds run by former Hillhouse Capital staff or backed by Hillhouse founder Zhang Lei, have been hit hard by China’s tech sector stock crash, according to a report by Business Times.
Along the losers are Franchise Capital Management, which has lost two-thirds of its value in the 14 months to April, Brilliance Asset Management’s whose flagship fund lost 27 per cent in the first four months of 2022, while a retail version dropped 47% from a February 2021 peak to 2 Jun. CoreView Capital Management and Snow Lake Capital also saw losses.
Hedge funds are spreading misinformation by claiming they have the backing of the largest US unions in their ‘fight’ against new financial regulations, according to a report by The Financial Times.
Following the collapse of Archegos Capital Management, the Securities and Exchange Commission (SEC) has proposed a raft of new rules and measures aimed at increasing transparency in stock markets including stopping investors – including hedge funds – from using swaps to secretly build up holdings in public companies without disclosing their positions, and halving the amount of time investors have to reveal large stock holdings.
The report says that
SureFire Capital, a Canadian multi-strategy hedge fund manager, returned 22.1% in April, with preliminary figures also indicating a 10%-plus uplift in May, according to a report by AlternativesWatch.
SureFire Multi-Strat LP, the Montrreal-based firm’s quantitative stray, focuses on the Nasdaq-100 Index and incorporates trend, momentum and volatility factors.
Family office Surefire, which was founded in 2013, allocates to underlying managers via a separately managed account (SMA) structure.
The tech stock rout continues to hit hedge funds hard with Maverick and Lone Pine both seeing falls of around 30% so far this year, according to a report by Bloomberg.
The funds, run by Lee Ainslie and Steve Mandel, respectively have joined several other Tiger Cubs on the list of tech stock losers.
Maverick Capital main hedge fund saw a loss of 32.5% up to the end of May, according to people familiar with the results on the back of bets on South Korean e-commerce giant Coupang Inc and Amazon.com Inc
Mandel’s Lone Pine, meanwhile slid about 30% in
Some of brazil’s top hedge fund managers are turning to inflation-linked bonds to protect themselves from the fallout of the government’s bid to reduce fuel prices which they believe could see the country’s fiscal outlook worsen, according to a report by BNN Bloomberg.
A run of strong returns over the past two years has prompted hedge fund boss Bob Bishop to close Impala Asset Management and covert to a family office, according to a report by Bloomberg.
Galaxy Digital founder and CEO Mike Novogratz believes that the current market downturn means that two thirds of hedge funds that invest in cryptocurrencies and digital assets are destined to fail, according to a report by Bloomberg.
The report quotes comments made by the former Fortress Investment Group hedge fund manager at the recent Piper Sandler Global Exchanges & Brokerage Conference in New York.
Novogratz though remains optimistic about Galaxy Digital’s prospects despite a ‘catastrophic loss’ from last month’s collapse of the Terra blockchain and is planning to continue with its expansion plans while rivals are laying off staff.
Crispin Odey has wiped out years of losses at his Odey European Inc hedge fund so far in 2022 with the fund up 110% since the turn of the year, according to a report by BNN Bloomberg.
The report cites an investor document as revealing that the fund was up 14% alone in May, with this year’s gains coupled with a 54% uplift last year propelling the fund back to a level last seen in 2015.
Having reached its high watermark, the fund can once again begin charging incentive fees.
Former Citadel analyst Gregory Blotnick has been sentenced to over four years in prison by a federal judge in Newark, New Jersey, after claiming $4.6 million fraudulent Covid relief loans for his start-up hedge fund Brattle Street Capital LLC, according to a report by BNN Bloomberg.
In addition, 35-year-old Bltnock has been ordered to pay $4.6 million restitution after most of the funds were lost on the markets.
Blotnick, who worked at Citadel for less than a year, pleaded guilty in October to submitting 21 fraudulent loan applications to 13 lenders under the US Paycheck Protection Program of the March 2020 covid stimulus bill.
US trading firm Jane Street Global Trading has launched a USD13.5 million lawsuit against the London Metals Exchange (LME) following the cancellation of Nickel trades in March, according to a report by The Financial Times.
