Short Covering Caught Hedge Funds in July Near Record levels – Goldman Sachs

The sometimes-vertical moves in stocks during July, in particular in the Magnificent Seven Stocks caught many hedge funds by surprise in July according to Goldman Sachs Prime Brokerage. Goldman Sachs indicates “signs of capitulation are starting to emerge” in their recent prime brokerage report. To be fair many of the analysts have been arguing capitulation was nigh for at least six months it seems. While losses were mainly on the short side Goldman saw “a meaningful deterioration in long side” … Continue reading “Short Covering Caught Hedge Funds in July Near Record levels – Goldman Sachs”

World’s Richest Hedge Fund Managers in 2023

According to Forbes the world’s richest are $200 billion poorer than last year, no need to cry for them, they are still worth $2.1 trillion. One group of billionaires that got richer was hedge fund managers. There is an advantage when you can buy and sell in falling markets after all. The 20 richest hedge fund billionaires on Forbes’ 2023 World’s Billionaires list are worth $245 billion, up $4 billion from a year ago. Forbes counts 47 hedge fund billionaires … Continue reading “World’s Richest Hedge Fund Managers in 2023”

Elon Musk’s SpaceX Valued at $137 Billion in New Funding Round

Space Exploration Technologies Corp. (SpaceX), the most valuable private company in the US, is reported to be raising $750 million in its latest funding round putting the value at $237 Billion according to a CNBC report. The company was offering the shares for $77 apiece in December according to people who asked not to be identified because the information wasn’t public. The $137 billion figure compares with a $127 billion valuation in July, according to data provider PitchBook. Andreessen Horowitz … Continue reading “Elon Musk’s SpaceX Valued at $137 Billion in New Funding Round”

The World’s Largest Pension Funds, Who They Are and Where They Invest

Global pension funds saw relatively strong growth in 2021, recall the end of 2021 many stock markets hit all-time highs and the bond market had not been routed yet. The world’s 100 biggest pension funds were worth over $17 trillion in total, an increase of 8.5% over 2020. A study from the Thinking Ahead Institute and Pensions & Investments released in September 2022 gives us a look into who are the largest pension funds around the world. The top 20 pension funds … Continue reading “The World’s Largest Pension Funds, Who They Are and Where They Invest”

Fund Manager Misery with Capitulation and Sentiment at Lehman Collapse Levels – BofA Survey

BofA Global Fund Manager Survey revealed the lowest equity allocation since Lehman Bros and the highest cash levels since 2001 as fund managers slashed their exposure to risk assets. These levels have not seen even during the global financial crisis. The markets in response on Tuesday in a sign of full capitulation amid a “dire” economic outlook rallied sharply by early afternoon the Dow at 31765.50 was +691.01 or +2.22%, Nasdaq 11695.85 +335.83 +2.96% and the SP 500 3931.38 +100.46 … Continue reading “Fund Manager Misery with Capitulation and Sentiment at Lehman Collapse Levels – BofA Survey”

At US Stock Market Top Passive Funds Overtook Active Funds Ownership for First Time

A phenomenon consistent with the belief stock markets only go up is the ‘hold forever’ passive funds. At the end of 2021 these passive funds accounted for 16 per cent of US stock market capitalization. This overtook the 14 per cent held by active funds, according to the Investment Company Institute, an industry body. Significantly the all-time high of the US markets was seen at the end of 2021 and since then we have seen sharp selloffs. What I we … Continue reading “At US Stock Market Top Passive Funds Overtook Active Funds Ownership for First Time”

Kohl’s Gets $9 Billion Bid 37% Above Market from Activist Hedge Fund

Department store chain Kohl’s Corp received an unsolicited offer from activist hedge fund Starboard Value LP to buy the company Friday. The WSJ reported that sources disclosed a group led by a group controlled by Starboard, Acacia Research Corp. offered to buy Kohl’s for $64 a share in cash. Acacia said it has received assurances from bankers it has financing for the bid. Reuters reported earlier this week that Acacia was exploring a possible bid for Kohl’s. Kohl’s $KSS shares … Continue reading “Kohl’s Gets $9 Billion Bid 37% Above Market from Activist Hedge Fund”

Natural Gas Volatilty a Lesson in The Reversal of Fortunes

This week’s poster child in volatiity and risk is Miami-based hedge fund Statar Capital who specialise in natural gas. After being up huge in the first 10 days of this month down about 7.7 per cent for September before fees as Natural gas futures went from 4.80 to 5.60btu and back.