SoftBank CEO Masayoshi Son says he’s hoarding cash to prepare for ‘worst case scenario’ [CNBC]
He said he initially targeted about $40 billion of asset sales this year but ended up selling off about $80 billion of companies to give the company liquidity in case of a global emergency…. “Anything can happen in this kind of situation,” Son said. “Of course, medical vaccine is coming. But who knows in the next two or three months?”
Renaissance, Two Sigma See Losses as Quant Giants Navigate Chaos [Bloomberg]
Renaissance saw a decline of about 20% through October in its long-biased fund, according to a person familiar with the matter. The $75 billion firm’s market-neutral fund dropped about 27% and its global-equities fund lost about 25%.... Two Sigma saw its risk-premia strategy lose 11.5% this year through last month, according to documents seen by Bloomberg. The $58 billion firm’s absolute-return fund declined 2.7%, while its absolute-return macro fund slumped 23%.... Even for a firm such as AQR Capital Management, which was tilted toward value stocks in some of its portfolios, the pullback from momentum exposure was too big to overcome. The shift added to losses for the AQR Equity Market Neutral Fund, which was down 19% this year through Monday.
Aramco Raises $8 Billion Bond to Fund Dividend Pledge [WSJ]
Saudi Arabian Oil Co., as the company is officially called, sold the debt at yields higher than those on Saudi government debt of similar maturities, according to a document from one of the lead manager banks of the issue and data from FactSet. That indicates investors see Aramco as riskier than the Saudi government and contrasts with last year when the oil firm raised $12 billion in a debut bond that sported lower borrowing costs than the sovereign.
Michael Hintze Ramps Up Succession After Bruising Year for Hedge Fund [Bloomberg]
Hintze disclosed plans to form a group of senior partners at his London-based firm CQS, according to a letter on Tuesday to his clients seen by Bloomberg. The group, including Michael Peat, Soraya Chabarek, Prakash Narayanan, Craig Scordellis and Jason Walker, will share higher equity stakes and develop a firmwide strategy…. Hintze’s move comes after his main hedge fund suffered heavy losses as his structured credit bets imploded during the swings sparked by the pandemic earlier this year. The hedge fund he personally oversees -- CQS Directional Opportunities -- was down 41.6% through October this year.
George Soros laments investment in Palantir and says he will sell the rest when allowed [MarketWatch]
“SFM does not approve of Palantir’s business practices. SFM made this investment at a time when the negative social consequences of big data were less understood. SFM would not make an investment in Palantir today.”
As Ackman hunts blockbuster deal, he counts on big backers [Reuters]
Among the heavy hitters rounded up by Ackman for his Pershing Square Tontine Holdings Ltd investment vehicle, according to the filings, are mutual fund giant T. Rowe Price Group Inc, investment firm Guggenheim Partners, hedge fund Baupost Group, Canadian pension fund Ontario Teachers and private equity firm Blackstone Group Inc…. Were Ackman to seek an investment that exceeded his SPAC’s resources, the investors could boost its firepower by providing additional equity financing….
Tontine brings a “curated list of shareholders who are expected to be invested for many years,” Ackman told bankers working on the SPAC, according to one of the sources.