Latest news with #hedgefund
Yahoo
a day ago
- Business
- Yahoo
Vinci Compass in talks to buy Brazilian asset manager Verde
By Andre Romani SAO PAULO (Reuters) -Vinci Compass is in talks to buy Verde Asset Management, one of Latin America's most established hedge funds, Verde told Reuters on Monday, confirming earlier news reports. The move, set to be carried out through a share swap, would put Vinci, a Nasdaq-listed firm focused on alternative investments such as private equity, and Verde under the same roof. News outlet Brazil Journal first reported the potential deal, citing sources. The two firms combined manage nearly $58 billion in assets, according to data on their websites. The two Brazilian asset managers reached an initial agreement for a joint venture that would give Vinci control of Verde after five years, Verde confirmed. Verde's management would remain autonomous during that period, and Verde co-founder Luis Stuhlberger is set to remain as partner, it added. Vinci did not immediately respond to a request for comment sent outside normal business hours.
Yahoo
a day ago
- Business
- Yahoo
Behind Michael Gelband and $11 billion hedge fund ExodusPoint's strong year
Michael Gelband's ExodusPoint is atop the leaderboard midway through 2025, besting peers like Millennium. The $11 billion firm was the biggest launch in industry history, starting with more than $8 billion in 2018. The manager has leaned on its fixed-income expertise to drive strong returns this year. There were sky-high expectations for the ExodusPoint Capital Management when it launched 7 years ago. It's starting to meet them. The $11 billion firm was the largest launch in industry history in 2018 thanks to the stellar track record of cofounder Michael Gelband, who previously led Millennium's fixed-income division. He told former colleagues that his unit generated $7 billion in trading revenue in his eight years at Izzy Englander's firm, and hedge fund backers rushed to invest in his new firm, which started trading with a record $8.5 billion. But putting all of the capital to work, hiring scores of investors, setting up the necessary infrastructure, and finding the right leadership took time. The firm, which was also cofounded by former Millennium equities executive Hyung Lee, was a relative disappointment at the start, with the difficult reality of being compared to funds like the cofounders' former employer and Ken Griffin's Citadel from day one. Now, a little over seven years after the manager first began trading, the New York-based firm has outperformed its peers in 2025 and over the last 12 months. The manager is up more than 9% after a 1.8% June gain. Since the start of July 2024, ExodusPoint has returned more than 18%. A person with direct knowledge of the firm's operations pointed to several factors as to why. This person is not permitted to speak publicly about the manager's operations. In a roller coaster equities market, ExodusPoint has benefited from its fixed-income lean. Roughly 75% of the firm's risk is in fixed-income books, the person close to the firm said, which is Gelband's specialty, though the cofounder does not manage money himself. Jon Hoffman, a former Lehman Brothers trader who worked with Gelband at the bank, is one of the firm's best-known portfolio managers with his basis-trade strategy. Gelband is now the sole chief investment officer after Lee stepped down in 2024 (the cofounder, who had relocated to Puerto Rico, is currently a senior advisor). The firm made several hires in 2023 who have led units that were previously under Lee's purview, such as Adam Galeon and Michael Lapsa, who run long-short equities and systematic strategies, respectively. Peter McConnon, once the head of London macro for Balyasny, was also brought in during this time as a senior managing director of fixed income and macro. While members of the original team such as Lee and former chief risk officer Dev Joneja have moved into advisory roles, Garrett Berg, a day-one employee who has since been promoted to president and COO, and Kunal Kumar, a former Balyasny executive who joined in 2023 and is now chief risk officer, have been a big part of the progress on both the investment and non-investment sides of the business, this person said. The firm also adopted a cash hurdle for performance fees last year, meaning ExodusPoint only collects performance fees when it returns more than a Treasury bill. This has lowered the overall fee rate of the firm, boosting net returns. Lastly, the firm has been strategic about how it expands and hires. While headcounts at multistrategy funds have exploded in recent years, ExodusPoint reduced its staff slightly since 2022, according to regulatory filings compiled by industry data tracker Old Well Labs. The firm's overall headcount stood at 688 in 2022 and is now roughly 650, the data show. After raising $1 billion in new cash in 2023, the firm is closed to new capital, like many of its peers, and is not looking to expand into different strategies or markets like commodities or private credit, the person said. Read the original article on Business Insider
The Guardian
2 days ago
- Business
- The Guardian
UK is stuck in a ‘debt doom loop', says top investor
One of the world's most prominent hedge fund investors, Ray Dalio, has warned that the UK is stuck in a 'doom loop', as it faces a worrying mix of higher taxes, rising debts and slower growth. Dalio, a US billionaire who founded hedge fund Bridgewater Associates in 1975, said warning signs over the size of debts in western countries were 'beginning to flash and flicker', but that the UK government's efforts to raise more funds via taxes risked driving its wealthiest taxpayers out of the country. 'The debt doom loop also is affecting capital flows,' the hedge fund founder told the Master Investor podcast with Wilfred Frost. He said the need to increase taxes was 'driving people away. They move for their capital reasons.' 'A deterioration in conditions, as the financial problems and the social problems worsen, [is] having the effect of causing people with money to leave. That's a problem because – I don't know the exact numbers in the UK, but they're analogous to the US – 75% of income taxes are paid by the top 10%.' 'So if you lose 5% of the population in that category, half of those people, you lose 35% or more of the tax revenue.' The warning comes as the chancellor, Rachel Reeves, considers tax rises in her autumn budget, with growing speculation that she could target some of the wealthiest people in the UK, to avoid putting further pressure on consumers. But some wealth experts have warned that could compound the effects of the abolition of the 'non-dom' regime, which was triggered by the former Conservative government and maintained by the current Labour cabinet. Those changes ended the arrangements that allowed wealthy foreign people to avoid paying tax on money they were earning outside the UK, and avoid paying inheritance tax on their global assets. Reeves is reportedly considering softening changes to the inheritance tax aspect of the non-doms clampdown. However, a widely cited report suggesting millionaires have been leaving Britain has been criticised for making unsubstantiated claims. The Financial Times said that the Wealth Migration Reports, published in association with Henley & Partners – a consultancy that markets schemes that sell passports and residency permits to the wealthy – had relied heavily on LinkedIn data to deduce someone's tax residence. Dan Neidle, the founder of the Tax Policy Associates thinktank, said: 'until an independent audit is carried out, the Wealth Migration Report should be treated as marketing material, not evidence.' Dalio, who officially retired from leadership roles at Bridgewater in 2021, said that ultimately, countries needed to move away from polarised politics and seek leadership from 'a strong middle', and prioritise lowering central government deficits to a 'sustainable' level of about 3% of GDP. 'They have to do it equally in spending cuts and taxation. Because no one of those [alone] is possible. And if that is done, then interest rates will come down or not rise,' the hedge fund founder said. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The UK deficit was recorded at 5.7% of GDP at the end of 2024, according to the Office for Budget Responsibility (OBR), which is about four percentage points higher than the average advanced economy and the third highest among 28 advanced European economies. Meanwhile, new figures released on Monday showed that the number of UK business now deemed to be in 'critical' financial distress had jumped to 49,309 in the second quarter of this year, a 8.6% rise compared with the first three months of 2025. The insolvency experts Begbies Traynor said businesses were struggling because of a worrying cocktail of volatile consumer spending, global economic turbulence and rising taxes on business. Julie Palmer, a partner at Begbies Traynor, said that 'with no end in sight to the current economic malaise, I fear the financial burdens companies are enduring at present are simply too high for many not to avoid collapse.'
Yahoo
2 days ago
- Business
- Yahoo
Loop Capital Initiates Coverage on Autodesk, Inc. (ADSK) with ‘Hold' Rating
By earning a spot on Ethisphere's 2025 list of the World's Most Ethical Companies and attracting significant hedge fund interest, Autodesk, Inc. (NASDAQ:ADSK) secures a place on our list of the . A bridge under construction, watched over by a team of experienced engineers. On July 23, Loop Capital started coverage on Autodesk, Inc. (NASDAQ:ADSK) with a 'Hold' rating, setting a $320 price target. The company's share price is currently at $301.10, and this price target implies an upside potential of 6.28%. The analyst attributed the 'Hold' rating to softness in the company's core construction market, marked by high interest rates and rising material costs. However, the analyst remains optimistic about ADSK's long-term potential. Meanwhile, it was reported weeks ago that Autodesk, Inc. (NASDAQ:ADSK) was planning to acquire PTC, a Boston-based rival engineering company. However, those plans have since changed. On July 14, 2025, Bloomberg reported that ADSK is no longer thinking of acquiring PTC. The share price of Autodesk went off on a downward slope following the news of potential acquisition; however, it's gaining upward momentum now. The share price is up 3.06% over the past week. Autodesk, Inc. (NASDAQ:ADSK), a global 3D design, engineering, construction, and entertainment software company, offers cutting-edge tools for everything from infrastructure to animation. It is one of the best ESG stocks. While we acknowledge the potential of ADSK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 14 Cheap Transportation Stocks to Buy According to Analysts and Top 10 AI Infrastructure Stocks to Buy Now. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Nokia Oyj (NOK) Reports Lower Q2 Revenue and EPS
With a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, Nokia Oyj (NYSE:NOK) makes it onto our list of the . On July 22, 2025, Nokia Oyj (NYSE:NOK) released its revised full-year 2025 financial outlook ahead of its Q2 results. Based on the revised guidance, the company expects a comparable operating profit of $1.88–2.47 billion, down from the previous guidance range of $2.24-2.83 billion. This revision in operating profit guidance is attributed to a weaker US dollar and ongoing tariff impacts. Now, Nokia Oyj (NYSE:NOK) bases its projections on a EUR: USD exchange rate of 1.17, in contrast to 1.04 in January. The currency risk is expected to have a negative impact of $270.79 million on profits. Meanwhile, tariffs are expected to negatively impact earnings by $58.87-94.19 million. Meanwhile, on July 24, 2025, Nokia Oyj (NYSE:NOK) reported its performance for Q2 that ended June 30, 2025. The company's comparable net sales were flat at EUR 5.35 billion. Sales declined 1% on a constant currency basis due to a 13% decline in Mobile Networks. Meanwhile, the Network Infrastructure and Cloud & Network Services segments recorded growth of 8% and 14%, respectively. A venture fund loss of $58.79 million contributed to a 6.6% decline in operating margin, leading to a decrease in EPS from $0.07 per share in Q2 2024 to $0.05 in Q2 2025. Furthermore, free cash flow stood at $103.47 million, declining due to debt repayment. Operating through Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies segments, Nokia Oyj (NYSE:NOK) offers mobile, fixed, and cloud network solutions across the globe. It is included in our list of the best cloud stocks. While we acknowledge the potential of NOK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 14 Cheap Transportation Stocks to Buy According to Analysts and Top 10 AI Infrastructure Stocks to Buy Now. Disclosure: None. Sign in to access your portfolio
