Bond sell-off hits big quant funds
Some of the world’s biggest quant hedge funds have suffered steep losses in the past two weeks following the sell-off in global bond markets. So-called “CTAs”, which use computer models to automatically spot and ride market trends, were caught out as investors anticipated an end to the Federal Reserve’s measures to stimulate the US economy, triggering a global rout in fixed income investments.
Many quant funds have been major buyers of bonds over the past few years as their algorithms have followed yields lower.
Start-ups collar US pets market
A new crop of tech start-ups is reaching for a piece of the $50bn (£32.5bn) market for pet products. Venture capitalists have invested $6m into Whistle, a San Francisco start-up that yesterday launched its wireless fitness tracker for dogs.
McClendon targets $1bn for new firm
Aubrey McClendon, the controversial former chief executive of Chesapeake Energy, is attempting to stage a comeback by trying to raise $1bn in capital from private equity firms and sovereign wealth funds for his new company.
New powers to reject wind farms
New powers to block unsightly turbines will be announced today in a move hailed by Conservatives as marking the end of onshore wind farms. Under new rules, developers have to consult communities before seeking planning permission. If locals object, the process will be halted.
Publisher tried to force Amazon
Publisher Simon & Schuster attempted to cost Amazon so much money that the retailer would be forced to increase the price of digital books, a US court heard yesterday.
The Daily Telegraph
Shells rejects price rigging claims
Royal Dutch Shell, one of the energy giants under investigation for suspected oil price rigging, has “nothing to hide”, its chief executive Peter Voser has said. Investigators raided Shell’s offices last month on suspicion the oil major could have colluded to manipulate the price-reporting process.
MPs angered by East Coast rail deal
The government has been accused of sending “money on the TGV” to France by allowing foreign train operators to run Britain’s railways but not Directly Operated Railways, a company owned by the UK taxpayer.
THE WALL STREET JOURNAL
Geely doubles down on Volvo
Three years after he bought the Volvo car brand for $1.8bn, auto pioneer Li Shufu is doubling down on his bet that he can revive the storied Swedish auto maker. He is investing in a new Chinese factory to produce 120,000 cars a year and target the domestic luxury car market.
3D printer firm in takeover talks
MakerBot, the fast-growing maker of 3D printers, is in talks with suitors that could lead to the sale of the New York-based company, people familiar with the matter said yesterday.