All articles tagged with #hedge funds
SpaceX's upcoming IPO could hand hedge fund D1 Capital Partners about $20 billion at a $1.75 trillion valuation, with Darsana Capital Partners poised for roughly $15 billion; the windfall underscores how hedge funds and other private-market investors are increasingly positioned to reap big returns from private companies before IPOs.
Pershing Square raised $5 billion in a dual-listed NYSE IPO, creating Pershing Square USA Ltd. (PSUS) and Pershing Square Inc. (PS). PSUS is priced at $50 and the deal omits performance fees, offering investors exposure to either the underlying portfolio or the management business. Ackman aims to build a Berkshire Hathaway–style, permanent-capital platform, citing a long track record (over 2,600% since 2004) and a history of macro hedging, including a $2.6 billion gain from a 2020 credit-protection trade, with plans for investor events to engage shareholders.
Hedge fund manager Bill Ackman’s second attempt to list Pershing Square USA and its management company is moving forward, having raised about $5bn of a $10bn target as trading is poised to begin. The deal aims to secure perpetual capital and steady fee revenues, but investors remain wary of closed‑end funds. Ackman’s earlier, far larger 2024 bid was scrapped, and this listing relies largely on institutional buyers with some retail participation amid ongoing market volatility that has pressured Pershing Square’s flagship fund.
Jain Global is pivoting to manage money solely for Millennium, its founder’s former employer, and will return about $6 billion to investors. The exclusive deal gives Millennium access to Jain Global’s multi‑strategy platform while Jain remains independent, with the partnership expected to close in Q3 and aimed at accelerating Jain Global’s growth and offsetting startup costs. Millennium, with about $84 billion AUM, has recently backed external hedge fund talent, and Jain plans to hire roughly 15 portfolio managers by year’s end.
Jain Global, the multi‑strategy hedge fund founded in 2024 by Bobby Jain, plans to return investor cash in Q3 and will instead manage money exclusively for Millennium Management under an internal deal, allowing Jain Global to stay independent while Millennium gains scale. The move highlights the high costs and capital needs of multi‑strategy funds, as Jain Global—about $6 billion in AUM—faced difficult fundraising and competition from giants like Citadel and DE Shaw amid volatile markets.
Bloomberg reports a rising tactic dubbed the 'interception trade' where hedge funds poach traders during gardening leave with larger offers, sometimes reimbursing the leave; at least 14 cases cited, spotlighting how talent and pay escalate as recruits are snapped up mid-leave (e.g., Stanley Sheriff, Tarun Tyagi). The piece also notes high payouts and broad industry shifts (Alexander Gerko at XTX) and the ongoing scramble among headhunters as talent becomes increasingly valuable.
Hedge funds are buying claims to U.S. tariff refunds, offering upfront cash to importers at a discount in exchange for the full refunds when the government pays, a market unlocked by the Supreme Court's ruling against Trump's 'Liberation Day' tariffs. Deals range from a few million to over $100 million, with prices climbing toward 70 cents on the dollar, but the venture carries political risk and timing uncertainty as CBP rolls out its phased online refund portal.
Carson Block of Muddy Waters argues that AI-driven disruption will trigger broad market upheaval—potentially bigger than the 2008 crisis—reviving opportunities for short sellers as AI hype and economic dislocation shake US equities, with rising short interest and concerns about private credit signaling further volatility.
Crispin Odey has dropped his £79m libel claim against the Financial Times, admitting the paper would likely win its public-interest defence over decades of sexual misconduct allegations; the FT had indicated about 15 women were willing to testify. The decision comes after the FT disclosed evidence it planned to rely on and a three-week Upper Tribunal hearing over Odey’s FCA ban, during which he admitted to sexually assaulting a former employee in 2005. Odey now faces substantial legal costs as the case ends.
Bill Ackman is in talks to launch a new stand-alone fund that would place asymmetric bets against prevailing market narratives, echoing the pandemic-era doomsday trades that generated huge windfalls for Pershing Square. The strategy would use derivatives and short-term US debt before deploying into large credit and macro bets, potentially via an Amsterdam-listed vehicle, while Ackman also pursues growth ahead of a public listing and broader conglomerate moves amid recent fund-performance headwinds.
Investors specializing in distressed assets are targeting the private‑credit downturn as the biggest opportunity since the 2008 financial crisis, betting on bargains as redemptions hit funds and lenders face exposure shifts to AI-influenced software; while industry leaders warn the cycle could yield outsized returns, some observers caution that hype may outpace reality, as firms deploy capital, raise new funds and brace for tougher conditions.
Bank of America’s latest data rank the 20 stocks hedge funds are most shorted; Moderna (MRNA) leads with about 18.3% of its float short, followed by names like SMCI, CHTR, APA, HPQ, BBY, WDC and MGM, illustrating broad bets against a wide mix of equities as the S&P 500 sits roughly 3% lower year-to-date.
Bill Ackman is pursuing a dual IPO of Pershing Square Inc. and the Pershing Square USA fund on the NYSE, aiming to raise $5–$10 billion for the fund and list the management company; after a failed 2024 listing attempt, he has about $2.8 billion in institutional commitments, with the structure offering investors shares in the management company and testing public appetite for Ackman’s hedge-fund empire, potentially valuing the operation well above prior highs (well over $10 billion) if demand holds.
Ahead of Nvidia’s Q4 FY2026 report (due Feb 25), hedge funds increased NVDA holdings by about 1.6 million shares, lifting the Hedge Fund Confidence Signal to Positive and signaling optimism on AI‑chip and data‑center demand. Wall Street expects EPS of $1.52 and revenue of $65.67B, and TipRanks’ consensus shows Nvidia as a Strong Buy with a target of $261.84 (~39% upside).
Hedge fund Pershing Square, led by Bill Ackman, posted a 34% return last year and is backing a roughly $2 billion stake in Meta Platforms, arguing that AI-driven efficiency and long‑term upside justify the bet despite an AI-driven market selloff. Ackman positions Meta as a Buffett-like value play at about 27x earnings, noting recent AI spending could pay off over time. The move follows prior bets such as on Amazon, and adds a concentrated, high-conviction stake to Pershing’s portfolio.