Coinbase Had No Financial Exposure to Celsius, Three Arrows Capital, Voyager (Coin Desk)
Publicly-traded cryptocurrency exchange Coinbase (COIN) had no financing exposure to crypto lender Celsius, hedge fund Three Arrows Capital (3AC) or crypto broker Voyager Digital, according to a Coinbase blog post on Medium on Wednesday. All three troubled firms are seeking bankruptcy protection. “We have not engaged in these types of risky lending practices and instead have focused on building our financing business with prudence and deliberate focus on the client,” wrote Coinbase Institutional head Brett Tejpaul, Prime finance head Matt Boyd and credit and market risk head Caroline Tarick.
Morning Coffee: Hedge Fund Manager with Bikini Instagram Sets Up in London. Young Quants Make the Most of Being Paid to Do Nothing (eFinancialCareers.com)
Nobody with any common sense wants to go back to the days that near-to-retirement MDs call the “Old City”, with its daily cocktail of alcoholism and nepotism, slack working practices and abominable treatment of women and minorities. But on the other hand, there’s a distinct lack of joy about the modern industry; too many people act like they’ve been sentenced to finance. London needs people like Bill Perkins, who’s setting up a new office of his hedge fund there, to show them how to have a good time. Perkins is a legendary natural gas trader, who has been running Skylar Capital for ten years out of Houston.
This Hedge Fund Manager is Suddenly One of Twitter’s Top 10 Shareholders in a Bet that Musk will Lose (CNBC)
Matt Halbower, founder and CEO of Pentwater Capital Management, is betting that Twitter will prevail in its lawsuit against Tesla CEO Elon Musk, leading to a takeout not far from the original price tag of $54.20 a share
Hedge Fund Business Models Adapting to Keep Up with New Regulation (Hedge Week)
Hedge funds are investing an increasing amount of time, effort and money into dealing with legislation requirements, with new Hedgeweek research charting the extent that larger managers are leaning into recruitment and smaller managers into outsourcing. A survey from June – which informed Hedgeweek’s latest Insight Report, Regulatory Risk: Confronting the new global hedge fund compliance challenges – found that 50% of larger hedge funds (AuM >$1bn) are looking to expand their internal legal and compliance teams, and 44% of smaller hedge funds (AuM <$250m) planning to increase their outsourcing of compliance functions.
Preqin Quarterly Update: Hedge Funds Q2 2022 (Preqin)
Despite a stressful Q2 2022, hedge funds once again protected investors, but less so than many had expected. Equity and debt markets were under pressure in the second quarter as investors suppressed prices due to rate hikes and an increased risk of global recession. US investors’ focus was on inflation changes and the Federal Reserve’s policy response to CPI movements. The US central bank aggressively increased the target range twice during the quarter in response to high inflation, shocking the markets with a 75bp hike in June.