Waystar IPO: A Delayed Opportunity:
The Wall Street Journal reports that the highly anticipated IPO of Waystar, a private-equity-backed company, has been delayed until December or even 2024. This delay serves as a testament to the fragile state of the U.S. IPO market, which has struggled in the past two years. Despite recent signs of a rebound, with companies like Arm and Instacart successfully listing their shares, the subsequent decline in their stock prices has raised concerns. Waystar’s potential IPO represents a rare exit opportunity for its backers amid a decline in mergers-and-acquisitions activity, particularly for private-equity firms.
Credit Suisse’s Financial Crisis Averted:
Following the intervention by Credit Suisse, CNBC reports that the Swiss National Bank chairman, Thomas Jordan, credits the intervention with avoiding a potential financial crisis. The manner in which the ELA+ (Emergency Liquidity Assistance) loan was secured, deviating from the SNB’s typical requirements, prevented Credit Suisse from faltering in meeting its financial obligations. However, this move faced criticism and legal challenges over the lack of shareholder input and the substantial write-down of Credit Suisse’s additional tier-one (AT1) bonds, further impacting systemic stability.
Kalshi’s Battle with Regulators for Election-Betting Market:
A trading startup, Kalshi, finds itself involved in a legal battle, as it sues the regulators in an attempt to launch an election-betting market. The Wall Street Journal reports that Kalshi believes its contracts could provide investors with an effective hedge against political risks. However, concerns about potential fraud or manipulation during elections have led to reluctance from regulatory authorities, such as the CFTC, to approve such markets. The debate on the role of regulators as “election cops” remains ongoing.
Hedge Fund Industry Faces Outflows in 2023:
According to Reuters, it seems that hedge fund investors are pulling an estimated $80 billion from the industry this year. Don Steinbrugge, CEO of Agecroft Partners, notes that many investors are redirecting their assets towards private credit opportunities. This shift in investor behavior reflects evolving preferences and challenges the traditional dominance of hedge funds within the financial landscape.
Greenlight Capital’s Impressive Gains:
Greenlight Capital, led by its acclaimed value-driven investor David Einhorn, has showcased stellar performance this year. Institutional Investor highlights that the hedge fund posted a 2.1 percent gain in October, contributing to a remarkable 30.4 percent year-to-date return. With returns more than triple that of the S&P 500, Greenlight Capital is firmly established among the top-performing equity-oriented hedge funds in 2023.
Scaramucci’s Hedge Fund Success Amid Cryptocurrency Fervor:
Bloomberg reports that hedge fund manager Anthony Scaramucci believes his fund has likely achieved its best monthly returns ever. Scaramucci attributes this success to investments in Bitcoin, the tech sector, and the resurgence of newer economy assets. Despite some clients’ desires to reduce their exposure to cryptocurrencies, Scaramucci remains an avid advocate of the nascent asset class.
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