Skip to main content

Wellington hedge fund Salthill suffers losses in biotech missteps [FT]
Boston-based Wellington suffered a loss of around 11.6 per cent in its Salthill Partners hedge fund from the end of 2019 until the end of last month…. Over the same period the Nasdaq Biotech index has risen 28.5 per cent….
The Salthill fund, which has been running for nearly 20 years, raised hundreds of millions of dollars in early 2018, helping lift its assets to close to $1bn…. But the fund gained just 2.8 per cent last year, while the Nasdaq Biotech index rose 25.7 per cent, as it was slow to capitalise on the sharp market rebound from mid-March driven by central bank stimulus.

Amazon nears deal to buy MGM Studios for nearly $9 billion [CNBC]
Amazon is interested in acquiring more TV and film content for its Prime Video service as it competes with Netflix, Disney and other streaming video services…. MGM, which is a private company, has been seeking a buyer for several years. Its owners include Anchorage Capital, Highland Capital Partners, Davidson, Kempner Capital Management, Solus Alternative Asset Management and Owl Creek Investments — funds that took control of the studio when it emerged from bankruptcy in 2010.

Meet the Hedge Fund Boss Who Just Bought Tribune’s Newspapers [WSJ]
[Heath] Freeman is passionate about food and co-founded City of Saints Coffee Roasters, a small chain of high-end coffee shops, one of which was featured in an episode of the Showtime series “Billions.”
When it comes to managing Alden’s investments, Mr. Freeman exhibits little nostalgia and makes decisions solely based on the numbers, people who have worked with him say…. Alden has said it intends to take Tribune private. Industry watchers say they expect it will merge the company with MediaNews Group and extract further cost reductions.

Lordstown Motors Says It Needs to Raise Cash, Lowers Production Forecast [WSJ]
“Capital may limit our ability to make as many vehicles as we would like,” said Steve Burns, Lordstown’s chief executive, on a call with analysts. “We wanted to make sure everybody knew the worst, worst case….” The truck maker is in talks to secure more financing, Mr. Burns said, including discussions over an asset-backed financing plan and pursuit of an award through a federal loan program aimed at spurring electric-vehicle manufacturing.

Activist fund Elliott picks up stake in takeover target UDG Healthcare [Reuters]
UDG’s largest shareholder, Allianz Global Investors, which has an 8.6% stake, said last week it opposes the proposed deal as it is “opportunistic and significantly undervalues UDG and its prospects”….
“The consensus is that the current offer is underwhelming, but it has been unclear if anyone would make a public stand,” according to analysts at RBC Capital Markets, who said they have spoken to several UDG shareholders.
Elliott’s stake in UDG, as disclosed in a filing on Monday, makes the New York-based hedge fund among the top five shareholders in the healthcare company….

Hedge fund Schonfeld said to be hiring in Miami after ex-Citadel hire [efinancialcareers]
Schonfeld has recruited Colin Lancaster, a former head of macro strategies from Citadel. At Schonfeld, Lancaster will run a team split between New York, London and Miami…. Schonfeld opened an office in London in January 2019. It's also had an office in Coral Gables Miami since 2018, but is understood to be looking at expanding that. Schonfeld recently posted a job advert for a director of recruiting in Miami, which was subsequently taken down, seemingly in the absence of an official announcement.

Related

lucid rendering

Opening Bell: 12.6.21

SEC seeking Lucid lucidity; de Blasio going out with a jab; biotechs bad, Trump good for hedge funds; and more!

gensler

Opening Bell: 12.16.21

Federal Reserve to follow Bank of England’s lead; Gary Gensler gets going; hedge fund gets out of hedge fund business; and more!

exxon valdez

Opening Bell: 6.3.21

Three out of four is, well, pretty remarkable, actually; Elliott thinks inside the Dropbox; flush hedge funds scheming to get everyone back in the office full-time; and more!

munch-scream-bitcoin2

Opening Bell: 11.30.17

Grandma wants bitcoin; hedge funds are betting on cheese; get ready for the end of the credit rally; even rats don't like to go to midtown, says science; and more.

lucid rendering

Opening Bell: 2.24.21

Irrational Lucidity; Carlyle eyes big payday; GameStop CFO gets one; hedge funds shake out of Alibaba; and more!

Opening Bell: 8.14.15

Flash crash trader out on bail; Hedges funds screwed on China; Tsipras needs a friend; "Man Clogs Casino Pipes With Counterfeit Chips Worth $2.7 Million"; and more.

(Getty Images)

Opening Bell: 9.18.17

Why does BNY Mellon get to have all the repo fun?; ladies first when it comes to hedge funds; JPMorgan buys bitcoin as Jamie calls it a fraud; guess which body part this guy got stuck in a gym weight; and more.

Opening Bell: 01.14.13

Goldman May Delay UK Bonuses Until Top Tax Rate Falls (Reuters) Goldman Sachs is considering delaying bonus payments in the U.K. until after April 6, when the top rate of income tax in the country will drop to 45 percent, from 50 percent, a person familiar with the bank's operations said on Sunday. The strategy relates to bonuses that were deferred from 2009, 2010 and 2011, the person said. The Financial Times reported the news earlier today. JPMorgan Said to Weigh Disclosing Whale Report Faulting Dimon (Bloomberg) JPMorgan's board will consider releasing an internal report this week that faults Chief Executive Officer Jamie Dimon’s oversight of a division that lost more than $6.2 billion on botched trades, said two people with direct knowledge of the matter. The final report, which builds on a preliminary analysis released in July, is critical of senior managers including Dimon, 56, former Chief Financial Officer Doug Braunstein, 51, and ex-Chief Investment Officer Ina Drew, 56, for inadequately supervising traders in a U.K. unit that amassed an illiquid position in credit derivatives last year, the people said. The report, which isn’t complete, will be presented to the board when it meets tomorrow. The directors will then vote on whether to disclose it when the bank announces fourth-quarter results the following day, said the people, who asked not to be named because the report isn’t yet public. Morgan Stanley to trim Dubai staff amid global cuts (Reuters) "The Dubai cuts are part of the bank's global plan. Obviously, the bank is trying to focus on growth opportunities in the region and there has been little growth on the equities side barring Saudi," one of the sources said, speaking on condition of anonymity as the matter has not been made public. Morgan Stanley's equities business will now focus on Saudi Arabia, the source said, adding that planned cuts at other divisions in the Middle East were minimal. Hedge-Fund Leverage Rises to Most Since 2004 in New Year (Bloomberg) The rising use of borrowed money shows that everyone from the biggest firms to individuals is willing to take more risks after missing the rewards of the bull market that began in 2009. While leverage means bigger losses should stocks decline, investors are betting that record earnings and valuations 9.8 percent below the six-decade average will help push the Standard & Poor’s 500 Index toward the record it set in October 2007. “The first step of increasing risk is just going long, the second part of that is levering up in order to go longer,” James Dunigan, who helps oversee $112 billion as chief investment officer in Philadelphia for PNC Wealth Management, said in a Jan. 8 telephone interview. “Leverage increasing in the hedge-fund area suggests they’re now getting on board.” Goldman: Insurer Knew Paulson Was 'Shorting' (WSJ) Goldman Sachs on Friday fired back at a bond insurer suing it over a soured mortgage-linked deal, arguing in a court filing that ACA Financial Guaranty Corp. "cherry-picked" evidence to bolster its case. ACA in 2011 filed suit against Goldman in New York State Court, alleging Goldman misled it about a 2007 mortgage deal. ACA alleges that Goldman told it that one of Goldman's hedge-fund clients, Paulson & Co., was betting on the deal, when in fact Paulson was betting against it, according to an amended complaint the insurer is seeking to file. Had ACA known Paulson's true position, it never would have insured the deal, according to the amended complaint. Goldman countered in the Friday filing that ACA insured the deal knowing Paulson was betting against residential mortgage-backed securities at the time. ACA analyzed and chose the investments in the deal and should have been alerted by various "red flags" that Paulson wasn't betting on the investment, according to the filing. Primate found to be addicted to porn (NYDN) Gina, a resident of the Seville Zoo in Spain, chose to solely watch adult entertainment channels when a television and remote control was placed in her enclosure. Primatologist Pablo Herreros, writing in Spanish newspaper El Mundo, claimed he made the discovery some years ago on a tour of the nation's chimpanzee enclosures. During his research trip he conducted surveys on the behavior of the animals. Herreros wrote, “What I could never imagine were the surprises prepared for me by a female of this species called Gina who inhabited Seville Zoo.” To enliven Gina's nights, officials apparently decided to install a television, protected behind glass, and gave her a remote control so she could change the channels herself. And enliven herself she did. “The surprise was when they found that within a few days, Gina was not only using the remote control perfectly well, but that she also used to choose the porn channel for entertainment, as many of us would have done, ” Herreros wrote. “Although a small study estimated that porn films are only watched for about 12 minutes on average, the truth is that human and non-human primates possess an intense sexual life.” AIG Sues New York Fed... To Secure Right To Sue Bank Of America (Reuters) American International Group Inc has filed a lawsuit against a vehicle created by the Federal Reserve Bank of New York to help bail out the insurer, in a bid to preserve its right to sue Bank of America Corp and other issuers of mortgage debt that went sour. The complaint filed in the New York State Supreme Court in Manhattan seeks a declaration that AIG has not transferred billions of dollars of "litigation claims" to Maiden Lane II, including many related to the insurer's $10 billion lawsuit against Bank of America. UK court approves ex-Credit Suisse trader's extradition to U.S. (Reuters) A British court on Monday approved the extradition of a former Credit Suisse trader to the United States, where he is wanted over a $540-million fraud dating back to the subprime mortgage crisis. The case of Kareem Serageldin will now be sent to Home Secretary Theresa May, the interior minister, who under British law has the final say over extraditions to the United States. She is expected to give the green light for the transfer to take place. Serageldin, 39, the Swiss bank's former global head of structured credit, is accused of artificially inflating the prices of mortgage-backed bonds between August 2007 and February 2008, when their real value was plummeting. Equities Bear Brunt of Wall Street Job Cuts on Volume (Bloomberg) Employees on stocks desks fell by 8.5 percent globally in the first nine months of last year, according to a survey by Coalition Ltd., an industry analytics firm. That compares with a 6.6 percent drop in fixed-income workers and a 5.8 percent decrease for origination and advisory functions, the data show. Banks Find Promise Unfulfilled in China Forays (WSJ) Global firms sold about US$44 billion worth of shares in Asian financial institutions in 2012 to institutional investors or other strategic buyers, up from US$32.7 billion in 2011, according to data provider Dealogic. The retreat is gathering pace as a host of new regulations, including the so-called Basel III capital rules, make holding minority stakes in financial institutions more expensive. Thousands Participate In Annual No Pants Subway Ride (CBS) Organizers arranged that starting at 3 p.m., people got on trains at six different stops across the city, took off their pants and put them into their backpack. Participants then acted as if everything was completely normal as they rode on to Union Square. Participants are asked to don typical winter wear such as coats, hats and gloves and act as if they don’t know other pantsless riders, according to organizers. The group said it was just all in good fun. “People are willing to give basically their Sunday afternoon to take off their pants; to do something silly and fun, and you know, a good time,” one participant said. “It makes you feel invincible; superior, because nobody else has any idea what’s going on,” another said. There were no-pants subway rides in dozens of cities in 17 countries Sunday. In New York City, participants were happy it was rather warm. In prior years, the cold has bummed them out.