As the deadly coronavirus continues to take its toll on global markets, some investors believe there is a bid for risk-off assets such as gold and the U.S. dollar. Lockwood Advisors CIO Matthew Forester joins On the Move to discuss.
As the deadly coronavirus continues to take its toll on global markets, some investors believe there is a bid for risk-off assets such as gold and the U.S. dollar. Lockwood Advisors CIO Matthew Forester joins On the Move to discuss.
(Bloomberg) -- As one of Sweden’s oldest hedge funds shuts its doors, investors are trying to sort through the wreckage to figure out what exactly went wrong.Lars Ericsson, the chairman of soon-to-be defunct Informed Portfolio Management, says it’s clear now that the quantitative strategies his fund used failed to cope with the market moves brought on by the pandemic. But he rejects the idea that quants have had their day. “There is definitely a future for quantitative hedge funds,” he said on Thursday.IPM, a systematic macro fund based in Stockholm, started bleeding client money more than a year ago, with about $4 billion in assets under management flowing out since late 2019.Ericsson says the fund’s medium-term models failed to handle the shock that hit markets in early 2020.“When the pandemic came, it was a total surprise for the models,” he said.IPM then managed to come back from the brink, but bad trades that predated the pandemic came back to haunt the fund. Its relative equity models had been weighing on performance for years, due in part to a strategy relying on value stocks. This year, IPM’s models misjudged the relative gains in interest rates.Ericsson says he still thinks everything would have worked out had IPM had a little longer. As recently as half a year ago, it even hired some people from Goldman Sachs to help build out its business. But client withdrawals were too intense, and the fund had to give up.“We were about to add some short-term factors, which would have been good diversifiers,” he said. “But unfortunately, we won’t get that chance now.”Industry in Decline?IPM joins a growing list of hedge funds shutting down in recent years as investors rethink their allocations to the industry. More hedge funds have closed than started in the last six years, with 770 of them shuttering in 2020, according to data compiled by Hedge Fund Research Inc.Last year was particularly tough for computer-driven quant funds, including behemoths such as Renaissance Technologies, Winton and Two Sigma.IPM’s systematic macro strategy applied fundamental macroeconomic principles to rank asset classes and economies. It then allocated money across asset classes including sovereign debt, equity indexes, commodities and currencies across the world. The model was based on historical statistical data, and relied heavily on computers.Jonas Thulin, who oversees $6 billion as head of asset management at Erik Penser Bank AB in Sweden, says Ericsson is right to defend quant strategies, despite IPM’s demise. However, Thulin, who’s been able to increase assets under management roughly fourfold since 2018 using macro strategies, says quant models become dangerous when applied too narrowly.The Killers“The usual killers of quant strategies are so-called paradigm shifts and shocks,” he said.Thulin says the way around this is a methodology he calls “dynamic macro.” The idea is that asset managers “constantly run parallel universes of historical relationships and explanatory variables and structures.” Part of the idea is also that the model isn’t used to predict the future, “but rather, the market’s perception of the future,” which requires a human sanity check.That approach helped Thulin deliver a 26% return over the past year on his firm’s multi-asset portfolio, compared with the 5-7% annual return it targets. The global stocks portfolio he oversees is up 39% over the period.Ericsson notes that the long-term trend suggests that the share of total assets being managed under quantitative strategies is increasing, “even though there may be a temporary setback now.”But for IPM, “assets under management decreased faster than we had expected and with that asset base it is difficult to maintain the quality we want.”(Adds comment in 8th paragraph, more details of strategy in 11th)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Reliance Industries Ltd., controlled by Asia’s richest person Mukesh Ambani, bought Stoke Park Ltd. for $79 million, adding an iconic locale that’s been the setting for two James Bond films to its portfolio of tourism properties.A wholly owned unit of Reliance Industries will buy Stoke Park, which owns and manages a hotel, sports and leisure facilities in Buckinghamshire, for 57 million pounds ($79 million), according to an exchange filing late Thursday. The acquisition will add to Reliance’s consumer and hospitality assets, the filing said.The property’s rolling golf course has been famous since James Bond played a game with Auric Goldfinger there in the 1964 blockbuster. Since then, the estate with the Georgian-era mansion set in the midst of 300 acres of parkland has also been a backdrop in productions like “Bridget Jones’s Diary” and Netflix Inc.’s British Royal Family drama “The Crown”.In real life, its 49 luxury bedrooms and suites, 27-hole championshop golf course, 13 tennis courts and 14 acres of private gardens attracts wealthy tourists from across the world.The latest marquee acquisition for Indian billionaire Ambani’s retail-to-refining conglomerate marks its pivot toward consumer offerings and yet another high-profile British brand purchase. Reliance bought struggling U.K.-based toy store chain Hamleys in 2019 and is seeking to revive it.Flush with $27 billion in fresh capital after selling stakes in Reliance’s retail and digital units last year, Ambani is helming a transformation as he seeks to build consumer services into a equal-sized pillar for Reliance Industries, paring dependence on profits from its traditional oil refining business. Acquiring marquee global brands underscores that strategy.Private GardensAlthough the Stoke Park estate has a recorded history of over 900 years, it was used as a private residence until 1908, according to its official website.Ambani has a net worth of $71.5 billion, making him the 13th richest person in the world, according to the Bloomberg Billionaires Index.The group “will look to enhance the sports and leisure facilities at this heritage site,” Reliance said in the filing. Ambani’s conglomerate has equity holding in EIH Ltd., which runs the chain of five star Oberoi Hotels.Reliance has announced acquisitions worth $3.3 billion in the past four years, with 80% of it in the media, technology and telecom sectors, according to an April 23 report by Morgan Stanley. Last year, Reliance bought out IMG Worldwide LLC’s 50% stake in their India sports management joint venture, signaling commitment to its sports and entertainment businesses.The U.K. is emerging as a real estate hotspot for wealthy Indians. Adar Poonawalla, chief executive officer of the Serum Institute of India Ltd. -- the largest vaccine manufacturer in the world -- agreed to rent a property in Mayfair for about 50,000 pounds ($69,300) a week, a record for the exclusive London neighborhood, Bloomberg reported last month.(Updates with comments from Morgan Stanley in the 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- China has already started buying U.S. corn from the harvest that farmers will start gathering in the fall, in the latest sign of tight global supplies.The Asian nation, the world’s largest commodity importer, bought American corn for shipment in the fourth quarter, according to people familiar with the matter who asked not to be identified because the deals are private. Crops for the fall harvest are currently just being planted and traders estimate sales to China were at least 1 million metric tons.Chicago corn futures rose by the most allowed by the exchange. The contract for July delivery surged as much as 25 cents, or 4.1%, to reach $6.315 a bushel, the highest for a most-active contract since 2013.China is rebuilding its hog herd faster than expected after a deadly pig disease shrunk animal numbers in the past few years. The rebound is fueling demand for corn to feed the animals. As the nation restores pork output with more modern agriculture practices, backyard farmers are being replaced by professional operations known as hog hotels, which usually feed more grains to pigs instead of table scraps. There’s also speculation China is stockpiling crops.U.S. exporters have already sold more than 20 million tons of corn to China for delivery this season, an all-time high, according to data from the U.S. Department of Agriculture. The agency hasn’t yet published data for any deals for next season, but it’s possible that some may have already been concluded and haven’t been reported.The surge in demand for U.S. supplies comes as dry conditions threaten crops in Brazil. The two nations are No. 1 and 2 for global corn shipments. While China doesn’t often buy large amounts from Brazil, the situation is still tightening the global supply picture. Importers typically turn to South America for supply during the next few months before the U.S. harvest starts in the fall.China is forecast to import 28 million tons from all countries in the 2020-2021 season, the USDA’s Being office said in a report this week. While purchases are expected to drop to 15 million tons the following year, it’s still double a quota set by the World Trade Organization that allows firms in China to import the grain at a lower duty rate.(Updates with rise in corn prices in third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Parduman Gupta, father of embattled metals tycoon Sanjeev Gupta, has moved out of the U.K., just as the pair’s GFG Alliance teeters on the brink following the collapse of its largest lender Greensill Capital.The senior Gupta has changed his country of usual residence from Britain to India, according to several filings made over the past few weeks at Companies House, the business registry. He owns Simec Group, the branch of the business empire which deals in renewable energy, shipping and mining, and was founded by the magnate as an export-and-import house in India.It’s not clear where Parduman Gupta is currently, but a spokesman for Companies House said that a company director must list their country of residence, and that this “should correspond with their usual residential address.” A spokesman for GFG Alliance, a loose grouping of companies owned by the father and son, declined to comment.Sanjeev Gupta has also been absent for several months from the U.K., where GFG owns numerous steel and aluminum plants and employs around 5,000 people. He said on recent podcasts for GFG employees that he left the U.K. for Dubai before Christmas, and hasn’t returned since.“Dubai is the perfect location for me and my family to operate out of for now,” Gupta said on a April 16 podcast, citing the city’s time zone.But he said that he was keen to be on the move again. “As soon as Covid travel restrictions in the U.K. and Australia and Europe are lifted I will definitely be trying to get in front of the customers and employees around the world.”‘Very Opaque’GFG last month asked the U.K. government for a 170 million-pound ($235 million) bailout, but the request was rebuffed. Business Secretary Kwasi Kwarteng told a parliamentary committee last week that it would be “very irresponsible” to give taxpayers’ money to the group, describing it as “very, very opaque” and having “liabilities that nobody seems to have got to the bottom of.”GFG has borrowed about $5 billion from Greensill, and is desperately seeking fresh financing, which Sanjeev Gupta is coordinating from Dubai.Some progress has been made. Three lenders are in talks to refinance one of his Australian steel mills, while a private equity firm has positioned itself to buy two of the group’s aluminum plants.Still, other parts of the business are facing difficulties. Three French units were put into voluntary administration last week, while other parts of GFG in France and Belgium have sought protection from their creditors.Gupta said on the April 16 podcast that some of his U.K. assets were “struggling at the moment with the lack of funding.” He called on GFG employees to be “brave,” but warned of “some difficult decisions” to come.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Daniel Dines struggled with life in the U.S. after leaving his native Romania in 2001 to work for Microsoft Corp., but the experience created the foundation for one of the world’s biggest fortunes.The software programmer returned to his homeland in 2005 to start the business known today as UiPath Inc., an automation-software maker that debuts Wednesday after raising $1.3 billion in a U.S. initial public offering. Dines, the company’s chief executive officer, controls a stake worth more than $6 billion, according to data compiled by Bloomberg.“For someone coming in his 20s to the U.S. from Europe, it was a big challenge for me to adapt to the States, even though professionally speaking my experience at Microsoft was great,” Dines, 49, said last year at the annual Montgomery Summit technology conference.As a result, “I had a crazy idea to go back and start a company,” he added.‘Hidden Advantage’UiPath, which was valued at $7 billion in 2019, is now worth about $30 billion after its shares priced at $56, above a marketed range. That puts Dines among the world’s 500 richest, according to the Bloomberg Billionaires Index. A company representative declined to comment.“Starting a company from a small place with no market has a hidden advantage: It forces you to think globally from day one,” Dines said in a letter included in UiPath’s registry filings for its listing. He had already indicated his company was preparing for a listing back in early 2020.The company’s software performs many low-skilled tasks that businesses once outsourced to humans in cheaper-wage countries such as India or the Philippines. Known as robotic process automation technology, the technique takes over repetitive, routine data-entry and processing tasks. Some of its software has been used in hospitals and health-care projects to help with Covid-19, according to UiPath’s website.Dines, who studied math and computer science at the University of Bucharest, grew up in Romania while the nation was still ruled by dictator Nicolae Ceausescu. He founded the company as DeskOver and renamed it UiPath in 2015, running it out of an apartment in the capital before relocating its headquarters to New York in 2017.Funding RoundUiPath raised $750 million in a funding round led by Alkeon Capital and Coatue that gave it a value of $35 billion, according to a February statement. Altimeter Capital Management, Dragoneer, IVP, Sequoia Capital, Tiger Global Management and funds advised by T. Rowe Price Associates also chimed in.Dines owns all of the company’s Class B shares, which carry 35 votes apiece compared with one each for Class A stock. He will continue to control UiPath after the IPO and sold shares in the offering worth about $75 million, according to filings.“You have to become a public company at some point to allow your employees to get more liquidity, give them stock options,” he said in an interview with Bloomberg last year. “We’re almost there.”(Adds details of share sale in penultimate paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Bitcoin declined for the seventh time in eight days, extending losses after President Joe Biden was said to propose almost doubling the capital-gains tax for the wealthy.The slide pushed Bitcoin down as much as 6.1% to about $48,432 in Friday trading as it continued to lose momentum. JPMorgan Chase & Co. and Tallbacken Capital Advisors LLC had recently warned there was potential for further downside after the largest cryptocurrency fell back from its record high of $64,870 on April 14 and took out key technical levels.“Bitcoin has slipped below the 50-day moving average support that it held sacrosanct through this rally,” said Pankaj Balani, CEO of Delta Exchange. “It looks like there is more downside here.”Read more: Wall Street Starts to See Weakness Emerge in Bitcoin ChartsTax concerns may be weighing, too -- as they did on American stocks Thursday. U.S. investors in the digital asset, which has advanced more than 70% this year despite its recent pullback, already face a capital gains tax if they sell the cryptocurrency after holding it for more than a year. But the coin’s been one of the best-performing assets in recent years -- anyone who bought a year ago is sitting on a nearly 550% gain. For investors who bought in April 2019, it’s roughly 800%.“One of the biggest things you have to worry about is that the things with the biggest gains are going to be most susceptible to selling,” said Matt Maley, chief market strategist for Miller Tabak + Co. “It doesn’t mean people will dump wholesale, dump 100% of their positions, but you have some people who have huge money in this and, therefore, a big jump in the capital gains tax, they’ll be leaving a lot of money on the table.”The IRS has stepped up enforcement of tax collection on crypto sales. The agency -- which began asking crypto users to disclose transactions on their 2019 individual tax returns -- asks taxpayers whether they “received, sold, sent, exchanged or otherwise acquired any financial interest in any digital currency.”Still, investors may need to buckle up for more volatility in the near-term.“People have been talking about the capital gains tax and U.S. stock-market selloff being the catalyst of this,” said Todd Morakis, co-founder of digital-finance product and service provider JST Capital. “If it is true we’ve moved too much -- but once Bitcoin gets a head of steam it is tough to stop unless you are at a technical area.(Updates prices and chart.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- One of Turkey’s largest cryptocurrency exchanges said it lacked the financial strength to continue operations, leaving hundreds of thousands of investors fearing their savings have evaporated as authorities sought to locate the company’s 27-year-old founder, who fled the country.Confusion reigned about how many users of the Thodex exchange were affected and how much money was at stake. In a statement from an unknown location, Thodex Chief Executive Officer Faruk Fatih Ozer promised to repay investors and to return to Turkey to face justice after he did. The government moved to block the company’s accounts and police raided its head office in Istanbul.Losses could be as high as $2 billion, according to Haberturk newspaper, and a lawyer for the victims said the money invested by about 390,000 active users had become “irretrievable.” Both figures have been disputed by Ozer. About 30,000 users have been impacted, he said in a statement on the company’s website on Thursday.While authorities and customers tried to work out the details of what happened, a senior official in President Recep Tayyip Erdogan’s office called for rapid regulation of the crypto market. Globally, the surge in the prices of digital tokens has been accompanied by convictions and regulatory measures after various scams tied to trading platforms.The Turkish government should take action “as soon as possible,” Cemil Ertem, a senior economic adviser to Erdogan, told Bloomberg. “Pyramid schemes are being established. Turkey will undoubtedly carry out a regulation that’s in line with its economy but also by following global developments.”Alternative InvestmentsThodex was part of the cryptocurrency boom that has drawn in legions of Turks seeking to protect their savings from rampant inflation and an unstable currency. Inflation hit 16.2% in March, more than three times the central bank’s target of 5%. The Turkish lira has weakened 10% against the dollar this year, its ninth consecutive year of losses.The government spent a massive $165 billion in foreign-exchange reserves over the past two years, Erdogan revealed on Wednesday, part of a futile effort to prop up the national currency. Concern about the country’s dwindling foreign-exchange reserves, which are negative when money borrowed by the government from private banks via swap agreements are factored in, has fueled concern about both lira and dollar deposits -- and pushed savers into alternative investment vehicles.Last Friday, the volume of trade in Turkish crypto markets tripled to over $1.2 billion from a week earlier, according to data published by coingecko.com, which tracks data on price, volume and market value on crypto markets. That compares with an average daily trading volume in the Turkish stock market’s benchmark index of about $3.1 billion.“One can establish a crypto exchange with just 50,000 liras (about $6,000) in capital,” Oguz Evren Kilic, a lawyer representing Thodex users, said by phone. “There’s a huge regulatory gap in this field.”Ozer didn’t respond to multiple calls to his mobile phone. The company’s call center also didn’t pick up calls. Bedirhan Oguz Basibuyuk, Thodex’s lawyer, told Bloomberg he doesn’t know where Ozer is but that he’s not in Turkey. Demiroren News Agency reported that he fled to Albania on Tuesday, publishing what it said was a photo of him at Istanbul’s airport.Dogecoin CampaignLast month, Thodex initiated a campaign to boost membership by offering millions of free Dogecoins to new registrants. Its website says 4 million of the coins were distributed, though many people have taken to social media to complain they never received them.“I was born as one of the three siblings of a civil servant,” Ozer said in his statement, adding that he’s a high-school dropout. As the company ran into financial trouble, he said he thought about either committing suicide or giving himself up to authorities, but both of those options meant clients’ assets would never be retrieved.“So I decided to stay alive and fight, work and repay my debts to you,” he said. “The day I repay all my debt, I will return to my country and give myself in to justice.”(Updates with new lede, government agency action, details throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The report by government-controlled Anadolu Agency comes a week after the country’s central bank announced it was banning the use of crypto for payments.
The Ethereum gas limit sets a ceiling for how many operations can be included in each block.
The investing icon spells out what you should — and shouldn't — spend that money on
(Bloomberg) -- A slide in the rupee is exacerbating a slump in Indian corporate dollar notes that are now among the worst performers in Asia, just as concerns mount that companies are hedging less.The securities have lost about 0.1% in April, worse than a 0.4% gain for a broader Asian dollar bond gauge, according to a Bloomberg Barclays indexes. All the other countries in Asia have posted positive returns, except China which lost about 0.4% after the stumble by China Huarong Asset Management Co.The weaker rupee pushes up servicing costs on foreign debt. The currency has plunged about 2.4% against the dollar this month, making it Asia’s worst-performer. Spiking Covid-19 cases threaten to worsen the selloffAbout 5 out of 10 Indian firms hedge their foreign borrowings in India as compared to about 8 several years ago before the RBI eased rules on hedging, said Samir Lodha, chief executive officer at QuantArt Market Solutions, a Mumbai-based advisory firm. “The drop in the rupee this month may prompt more local companies with foreign borrowings to consider at least some low-cost hedging.”Primary Market -- Foreign Borrowings SlowThe weaker rupee is also making borrowers hesitate to tap what would otherwise be some of the lowest borrowing costs ever in the dollar bond market. Just one Indian company has settled a note this month: a $585 million deal from ReNew Power. That leaves issuance set for the lowest in six monthsLocal firms have also shunned foreign-currency loans in April after borrowings of $7.2 billion in the previous quarter“Most corporates will definitely pause their plans to issue fresh foreign-currency debt as they wait for the rupee to stabilize,” said Abhishek Goenka, founder of IFA Global, a Mumbai-based advisory firm. “Pandemic-induced currency volatility is making it difficult for borrowers to assess their foreign debt costs.”Firms may be turning more to the local credit market, even though there have been fresh obstacles there tooThey sold 47.6 billion rupees of bonds this week and still plan as much as 80.5 billion rupees more. If all those sales go through, that would be higher than in the previous two weeks combinedStill, offerings have fallen to 139.9 billion rupees ($1.9 billion) this month, the slowest start to a financial year since 2014. That’s due in part to rules that took effect April 1 strengthening the role of trustees for secured bonds backed by assetsSecondary Market -- Sovereign Rating ConcernsThe latest wave of coronavirus infections is also bad for India’s sovereign rating. The country has the lowest investment-grade score with a negative outlook at Moody’s Investors Service and Fitch Ratings“We expect a repeat of 2020’s sudden crash in economic activity in the coming months,” said Timothy Wee Lee Tan and Jason Lee, Bloomberg Intelligence analysts. “With a downgraded GDP growth outlook for FY22, India’s debt burden will be higher than the current IMF forecast, implying an elevated risk of ratings falling into speculative grade.”Any official gross domestic product downgrade may lead to pre-emptive widening of the option-adjusted spread for Indian dollar credits, with an actual offshore sovereign rating downgrade likely to push premiums up to 90 basis points wider to trade closer to Brazil and South Africa, according to Bloomberg IntelligenceDistressed Debt - ARC Rules Under ReviewReserve Bank of India formed a six-member panel Monday to review rules for Asset Reconstruction Companies or ARCs, which help India’s banking system deal with one of the world’s worst bad loan ratios among major economiesARCs have been in the spotlight in recent weeks:Mar. 18: India’s Ministry of Corporate Affairs is investigating allegations of financial irregularities at the asset reconstruction arm of Edelweiss Financial Services Ltd., according to people with direct knowledge of the matter. Edelweiss said it hasn’t received any intimation of any inspection by the ministryMar. 14: India’s central bank has rejected Yes Bank Ltd.’s proposal to set up an ARC for acquiring bad loans on conflict of interest concerns, Mint reported citing people it didn’t identifyMeanwhile, Infrastructure Leasing & Financial Services, whose default in 2018 triggered a prolonged credit crisis in the country, plans to resolve 500 billion rupees ($6.6 billion) of its debt by the end of September, Chairman Uday Kotak said last week. Investors are closely watching the debt resolution as a test case for group insolvencyKotak, who is heading the IL&FS board after government seized control of the shadow lender in 2018, expects to resolve about 62% of its 1 trillion rupees of debtAnother group facing challenges in servicing its debt is Future Group. The Indian supermarket-operator Future Retail Ltd. approved a debt resolution plan that eases some immediate concerns as a legal battle with partner Amazon.com Inc. threatens to delay an asset sale to Reliance Industries Ltd. India’s top court scheduled a final hearing in the matter to May 4Best and Worst Performing Corporate Dollar Bonds Last 12 MonthsFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Informed Portfolio Management, a Swedish hedge fund that had relied on statistical models to devise its strategies, is set to shut its doors and return investor capital after losing roughly $4 billion during the pandemic.IPM, whose main owner is Stockholm-based investment firm Catella AB, had assets under management of close to $5 billion in late 2019, before the pandemic hit. A year later, that amount had more than halved to $2 billion, with the investor exodus since then depleting assets to about $750 million.“The recent investment market for systematic macro-funds has unfortunately been very challenging and IPM has had weak returns and large capital outflows,” Catella said in a statement on Thursday. “IPM will ensure that all investors are treated fairly. This includes that all investors will be able to redeem their capital in the coming months according to each fund’s specific liquidity rules.”IPM had used quantitative strategies, which rely on mathematical models instead of on-the-ground analysis of portfolio assets. But the historical statistical models the fund built proved unequal to the task of predicting how markets would move during the volatility brought on by the coronavirus pandemic.“We believe that there is definitely a future for quantitative hedge funds,” IPM’s chairman of the board, Lars Ericsson, said in an interview. “But for our part, we could not, from a business perspective, pursue it further on the asset base we had.”Read: A Hedge Fund Boss Explains the Trouble With Ethical InvestingIPM joins a growing list of hedge funds shutting down in recent years as investors rethink their allocations to the industry. More hedge funds have closed than started in the last six years, with 770 of them shuttering in 2020, according to data compiled by Hedge Fund Research Inc.Last year was particularly tough for computer-driven quant funds. Algorithms largely failed to decipher the impact of a rapidly moving virus and the response from central banks to contain economic damage. The market selloff in March last year and subsequent recovery humbled some of the most sophisticated of quants -- most notably behemoths such as Renaissance Technologies, Winton and Two Sigma.IPM was founded over two decades ago. Catella had hoped to find a buyer for the troubled fund, and it recently even announced several new hires amid a plan to branch out into new strategies.“Despite many promising dialogues during the spring, we have not been able to find a suitable buyer for IPM,” Catella said.(Adds comment from chairman of IPM’s board)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
UBS (UBS) lowered its price target for Nike (NKE) from $183 to $175. This follows a Chinese-led boycott of the brand for past statements criticizing China for alleged human rights abuses against Uyghurs in the northern province of Xinjiang.
It claims Liberty owes debts from the acquisition of Tata's speciality steels business, a report says.
Netflix added just 4 million new subscribers this quarter, compared to the 6 million it expected. The streaming service blamed Covid-related production delays leading to a "lighter" than usual content slate.
The direction of the June Comex gold market on Thursday is likely to be determined by trader reaction to the major 50% level at $1788.50.
The lawsuit comes after a federal appeals court this month rejected the city's effort to hold five major oil companies liable to help pay the costs of harm caused by global warming. The lawsuit said Exxon Mobil Corp, BP Plc, Royal Dutch Shell and industry group the American Petroleum Institute "have systematically and intentionally misled consumers" through fuel sales at branded stations as "cleaner" and "emissions-reducing" while not disclosing climate impacts.
(Bloomberg) -- AMP Ltd. is splitting off its private markets business after Australia’s oldest wealth management firm ended talks about a possible sale to Ares Management Corp.The months-long discussions with Los Angeles-based Ares have now concluded, AMP said in a statement Friday. Instead, the demerged entity of AMP Capital’s infrastructure and real estate units will be listed on the Australian stock exchange. As part of the separation, Boe Pahari, who was demoted last year from his position atop the investment management unit after a sexual harassment scandal, will leave the business.The decision provides some clarity for investors after a tumultuous period for the firm left its shares trading near an all-time low. AMP Ltd., to be run by Alexis George from the third quarter of 2021, will retain a stake of up to 20% in the spun-off firm, that will continue to be led by David Atkin amid an international search for a new chief executive officer.“It’s a real chance to really start fresh,” Jessica Amir, a market analyst at Bell Direct, said by phone. “The funds management industry is completely different to financial advice. Two separate businesses, two separate futures, so it’s a real fork in the road and a real opportunity for change.”AMP shares all but erased an early 8% gain in Sydney trading Friday to close less than 1% higher. The stock has tumbled 27% this year.Ares earlier this year scrapped a A$6.4 billion ($4.9 billion) takeover offer for the entire company as the wealth unit continued to struggle and instead had offered to pay A$1.35 billion for a 60% stake in the private markets business.The spin off is expected to be completed in the first half of 2022. Having concluded the review of AMP’s portfolio, the board will start a share buy-back of up to A$200 million.“We have had substantial and constructive discussions with Ares regarding a sale, however, we have not been able to reach an agreement that would deliver appropriate value for our shareholders,” AMP Chair Debra Hazelton said in the statement. “The board has therefore concluded a demerger provides investors with the strongest value outcome, creating two more focused entities, with the agility to pursue new growth opportunities in their respective markets.”Simple StructureThe private markets unit will put in place a new management equity plan in an attempt to attract and retain a high quality investment team, according to the statement. The demerger will simplify its structure and allow it to establish a new brand, the statement said.To be sure, there’s “a great deal of uncertainty” around AMP Capital given clients continue to pull cash, while the wealth management unit is facing profitably issues, UBS Group AG analysts led by Andrew Adams wrote in a note to clients. Shareholders will also have to pay the separation costs, pay down debt and likely another major cost cutting program, he wrote.“Further capital management, which was a big part of the positive AMP thesis, now looks unlikely,” according to the note. The spin-off is “a less than ideal outcome.”(Updates with closing shares in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Wall Street is skeptical President Joe Biden's expected proposal to hike capital gains taxes could pass the Senate, but investors see risks that tax-motivated selling could still weigh on technology and other sectors that skyrocketed during the pandemic. While any tax increase will likely be lower than Biden's initial proposal given the Democrat's small advantage in the Senate, individual investors who are concerned about rising rates may start to unload shares in order to lock in current rates.
TAIPEI (Reuters) -Taiwan's key semiconductor industry has years of growth ahead of it with no worries about oversupply despite a massive capital investment programme and only a few competitors in the next decade or so, a senior government minister said on Friday. Kung Ming-hsin, the head of Taiwan's economic planning agency, the National Development Council, told Reuters the business opportunities presented by the global transformation to a digital economy were "very, very enormous". Kung also sits on the board of Taiwan Semiconductor Manufacturing Co Ltd (TSMC) as a representative of the largest shareholder, the government's National Development Fund, which holds around 6% of the stock of the world's most valuable semiconductor company.