Hedge fund weekly round - up

Millennium Management and Schonfeld now in advanced discussions

According to reports, Millennium Management continue advanced discussions regarding a substantial investment in Schonfeld Strategic Advisors. If the deal gets finalised, this partnership agreement would be the largest of its kind within the $4 trillion global hedge fund industry. It's important to note that Schonfeld would continue to handle funds for other investors, although the specific terms have yet to be confirmed.

With more than 5,300 employees, Millennium would gain access to Schonfeld's extensive network of over 100 investment teams as it competes in a broader industry-wide talent recruitment battle. Schonfeld, would remain an independent entity and leverage Millennium's long-term capital to drive the expansion of its business.

Hedge funds sell energy stocks before Middle East conflict

According to Reuters , Goldman Sachs are reporting that hedge fund managers worldwide increased their sales of U.S. stocks linked to commodities swiftly in the week ending on October 6. This happened shortly before the price of oil surged by over $3 per barrel.

The sharp rise in crude oil prices on Monday reversed the previous week's downward trend, which marked the most significant weekly decline since March. During that period, Brent crude fell by approximately 11%, and WTI (West Texas Intermediate) dropped by over 8%. These declines were fuelled by concerns regarding high-interest rates and their potential impact on global demand.

The Goldman Sachs note also pointed out that, by the end of the week, hedge funds had significantly intensified their selling activity in shares of U.S. companies engaged in the production of chemicals, building materials, and paper products. This acceleration in selling was the most rapid since early June.

Ken Griffin’s hedge fund Citadel bucks the downtrend in September, up nearly 13% this year

Billionaire investor Ken Griffin's flagship hedge fund rallied last month when the broader market was rattled by tight monetary policy as well as rising recession fears. In September, Citadel's multistrategy flagship fund, Wellington achieved a 1.7% gain, contributing to its 2023 performance, which now stands at 12.6% according to the article .

Meanwhile, the S&P 500 experienced a 4.9% decline last month, marking its most challenging month this year. However, for the entire year, the equity benchmark remains positive, with an 11% increase.

Millennium Management appoint head of AI

Millennium Management, a prominent multi-strategy hedge fund, has appointed Gideon Mann as its new Global Head of AI and Technology. The report claims he will be responsible for establishing a new team that will assist the firm in effectively navigating the realm of artificial intelligence.

Gideon Mann's background includes nearly nine and a half years at Bloomberg, where he most recently served as the Head of Machine Learning Product and Research within the CTO Office. During his tenure, he led a team comprising approximately 50 employees, engaged in various aspects of the product lifecycle, spanning from research and product discovery to development and sales.

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