Weekly Update

Activist hedge fund increases stake in Ryanair to more than 7%

London based activist hedge fund, Parvus Asset Management, has increased its ownership in Ryanair to just over 7%, according to a recent report. The fund, founded by Edoardo Mercadante, purchased nearly €230 million worth of shares this week, bringing its total holding in Ryanair to €1.6 billion. The hedge fund has a history of taking activist positions, influencing company strategies with its significant size. Ryanair shares are currently trading at just under €20.50, rising steadily from a low of over €14 in October last year. Parvus holds its shares through an equity swap, a financial instrument allowing cost-effective stake building using leverage.

Balynasny hired Millennium's ex-Goldman Sachs hedge fund star

Balyasny Asset Management seems to have enticed one of Millennium's London portfolio managers with an offer he couldn't resist. Dan Avery, a 35-year-old partner recently promoted at Millennium Management in London, is joining BAM to establish a delta one team according to eFinancial. Avery, known for becoming a managing director at Goldman Sachs at the age of 28 in 2015, joined Millennium in October 2020. Balyasny, facing relatively weak performance in 2023, is bolstering its team by hiring new portfolio managers.

Hong Kong hedge fund set to open up in Middle East

Hong Kong based hedge fund firm, Infini Capital Management, has received initial approval from the Abu Dhabi Financial Services Regulatory Authority to open an office in the Abu Dhabi Global Market. According to the report, Infini Capital will be the first Asian hedge fund manager in the ADGM, aiming to benefit from the growing connections between Asia and the Middle East. The firm has secured space at the Al Khatem Tower in the ADGM, and the new operation will include various teams relocating from Hong Kong.

Hedge fund stock-buying hits fastest pace in 11 months

Hedge funds increased their global stock acquisitions at the fastest rate since March 2023 last month, driven by a more positive sentiment towards worldwide stock markets, including the US and Japan. According to a Reuters report, hedge funds showed net purchases of equities across major regions in February, marking the highest net inflows into global stocks in 11 months. Hedge funds shifted to buying US equities for the first time in seven months, particularly focusing on AI and semiconductor related stocks, while smaller tech companies gained favor over the so called Magnificent Seven stocks like Apple and Nvidia. Interest in Asia, particularly Japan, saw a recovery, with net buying reaching an eight month high as the Nikkei hit all time highs.