Jeff Bezos’ Day One Fund gives $97.5 million to 24 groups helping the homeless

Amazon CEO Jeff Bezos on Tuesday named 24 organizations that will receive a collective $97.5 million in grants from his new philanthropic fund for their work to help the homeless population. Bezos — the wealthiest man in modern history, with a net worth of more than $125 billion, estimated by Forbes — launched the $2 billion “Day One Fund” in September. At the time, Bezos said the fund would be split between the Day 1 Families Fund, with the goal of helping homeless families, and the Day 1 Acade


Amazon CEO Jeff Bezos on Tuesday named 24 organizations that will receive a collective $97.5 million in grants from his new philanthropic fund for their work to help the homeless population. Bezos — the wealthiest man in modern history, with a net worth of more than $125 billion, estimated by Forbes — launched the $2 billion “Day One Fund” in September. At the time, Bezos said the fund would be split between the Day 1 Families Fund, with the goal of helping homeless families, and the Day 1 Acade
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Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: lauren feiner, jason redmond, afp, getty images
Keywords: news, cnbc, companies, bezos, day, services, jeff, 25, housing, 975, washington, service, houston, million, gives, fund, millioncatholic, families, helping, groups, homeless


Jeff Bezos' Day One Fund gives $97.5 million to 24 groups helping the homeless

Amazon CEO Jeff Bezos on Tuesday named 24 organizations that will receive a collective $97.5 million in grants from his new philanthropic fund for their work to help the homeless population.

The news comes one week after Amazon’s HQ2 decision launched fears around displacement of affordable housing in the two locations it chose to expand its operations — Long Island City in New York and an area of Arlington, Virginia.

Bezos — the wealthiest man in modern history, with a net worth of more than $125 billion, estimated by Forbes — launched the $2 billion “Day One Fund” in September. At the time, Bezos said the fund would be split between the Day 1 Families Fund, with the goal of helping homeless families, and the Day 1 Academies Fund, with the aim of creating high-quality, nonprofit preschools for low-income communities. Tuesday’s announcement was for the recipients of the Day 1 Families Fund grants.

The 24 organizations are spread throughout 16 states and the District of Columbia.

Below is the full list of recipients:

Abode Services, Fremont, CA • $5 million

Catholic Charities Archdiocese of New Orleans, New Orleans, LA • $5 million

Catholic Charities of the Archdiocese of Miami, Miami, FL • $5 million

Catholic Community Services of Western Washington, Tacoma, WA • $5 million

Community of Hope, Washington, DC • $5 million

Community Rebuilders, Grand Rapids, MI • $5 million

Crossroads Rhode Island, Providence, RI • $5 million

District Alliance for Safe Housing (DASH), Washington, DC • $2.5 million

Emerald Development and Economic Network, Cleveland, OH • $2.5 million

FrontLine Service, Cleveland, OH • $2.5 million

Hamilton Families, San Francisco, CA • $2.5 million

Heartland Family Service, Omaha, NE • $5 million

Housing Families First, Henrico, VA • $2.5 million

JOIN, Portland, OR • $5 million

LA Family Housing, North Hollywood, CA • $5 million

Northern Virginia Family Service, Oakton, VA • $2.5 million

Primo Center for Women and Children, Chicago, IL • $2.5 million

Refugee Women’s Alliance, Seattle, WA • $2.5 million

SEARCH Homeless Services, Houston, TX • $5 million

Simpson Housing Services, Minneapolis, MN • $2.5 million

The Salvation Army, Center of Hope, Charlotte, NC • $5 million

The Salvation Army of Greater Houston, Houston, TX • $5 million

UMOM New Day Centers, Phoenix, AZ • $5 million

Urban Resource Institute, New York, NY • $5 million

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Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: lauren feiner, jason redmond, afp, getty images
Keywords: news, cnbc, companies, bezos, day, services, jeff, 25, housing, 975, washington, service, houston, million, gives, fund, millioncatholic, families, helping, groups, homeless


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Bain and KKR establish a severance fund for Toys R Us workers

KKR and Bain Capital, the private equity firms that owned Toys R Us before the company declared bankruptcy earlier this year, said Tuesday that they have each pledged $10 million to create the TRU Financial Assistance Fund, which aims to distribute severance funds to former employees. In a joint statement, KKR and Bain said the fund is being established in response to “an extraordinary set of circumstances” for both of the firms. The ex-employees will have to have worked at Toys R Us for at leas


KKR and Bain Capital, the private equity firms that owned Toys R Us before the company declared bankruptcy earlier this year, said Tuesday that they have each pledged $10 million to create the TRU Financial Assistance Fund, which aims to distribute severance funds to former employees. In a joint statement, KKR and Bain said the fund is being established in response to “an extraordinary set of circumstances” for both of the firms. The ex-employees will have to have worked at Toys R Us for at leas
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Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: isabel soisson, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, statement, employees, companys, firms, payments, workers, severance, toys, fund, establish, bain, kkr, provide


Bain and KKR establish a severance fund for Toys R Us workers

KKR and Bain Capital, the private equity firms that owned Toys R Us before the company declared bankruptcy earlier this year, said Tuesday that they have each pledged $10 million to create the TRU Financial Assistance Fund, which aims to distribute severance funds to former employees.

The move is unusual for the firms, as they are not required under bankruptcy law to do such a thing.

In a joint statement, KKR and Bain said the fund is being established in response to “an extraordinary set of circumstances” for both of the firms.

“The confluence of the disruption in retail, the push by the company’s secured creditors to liquidate the company’s U.S. operations, and the fact that we have never experienced something like this in the history of either firm led us to try and find a way to provide some financial relief for former employees,” the firms said in a statement.

In order to be eligible for the payments, those who were left jobless as a result of the company’s liquidation will have to meet certain criteria. The ex-employees will have to have worked at Toys R Us for at least a year, they can’t have more than $110,000 or less than $5,000 in annual income, and they must have met the termination and employment guidelines in the Toys R Us plan.

New Jersey Democratic U.S. Sens. Cory Booker and Bob Menendez, and U.S. Rep. Bill Pascrell Jr., D-N.J., whose district once included the company’s headquarters, issued a joint statement regarding Tuesday’s announcement of the creation of the fund.

“Fundamental to our values as Americans is the ideal that if you work hard and play by the rules, you should be able to get ahead,” the statement said. “For months, we have been raising concerns around the lack of support for impacted Toys ‘R’ Us employees and their families in an effort to provide some measure of fairness to the workers who built a great New Jersey company. Today marks a positive step toward fulfilling a moral obligation to thousands of former Toys ‘R’ Us workers.”

The two senators and congressman stood with Toys R Us workers in June outside the New Jersey-based retailer’s former headquarters in Wayne demanding fairness for the workers and their families affected by the company’s demise.

Shortly after Toys R Us announced it was going out of business, employees across the country banded together to protest for severance payments in Washington, D.C., and New York, and even lobbied in front of Congress and the firm’s investors. In September, the firms and the ex-employees agreed to the deal.

Now, ex-employees are focusing their attention on hedge funds Solus Alternative Asset Management and Angelo Gordon & Co. that were behind the decision to liquidate the company.

Kenneth Feinberg and Camille Biros have been appointed by Bain and KKR to be the independent administrators of the fund, according to a joint release from the firms. In the past, the two have assisted in distributing funds to various groups, including compensation to victims of the 9/11 attacks.

“We have designed a transparent, straight-forward, and simple process that should provide some financial relief to eligible former employees,” Biros said in a statement. “Next, we want to hear from those former employees affected by the unexpected liquidation.”

There will be a two-week period for all interested parties to comment on the terms and conditions of the plan. These comments will be evaluated by both Feinberg and Biros. After outlining the final terms and conditions, the claims process is expected to begin Dec. 15 and the aim is to complete payments by April 30, 2019.


Company: cnbc, Activity: cnbc, Date: 2018-11-20  Authors: isabel soisson, andrew harrer, bloomberg, getty images
Keywords: news, cnbc, companies, statement, employees, companys, firms, payments, workers, severance, toys, fund, establish, bain, kkr, provide


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Top VC deals: SAP buys Qualtrics; Bain closes a $1 billion fund

German software company SAP agreed to buy Qualtrics for $8 billion, weeks before the data analytics start-up was set to IPO. Qualtrics was founded in 2002 by brothers Ryan and Jared Smith and their dad, Scott, along with Stuart Orgill, who resigned from the board last year. The company didn’t raise venture funding for its first decade in business, but more recently raised capital from firms including Accel, Insight Venture Partners and Sequoia. BlackBerry said it will acquire Cylance, an artific


German software company SAP agreed to buy Qualtrics for $8 billion, weeks before the data analytics start-up was set to IPO. Qualtrics was founded in 2002 by brothers Ryan and Jared Smith and their dad, Scott, along with Stuart Orgill, who resigned from the board last year. The company didn’t raise venture funding for its first decade in business, but more recently raised capital from firms including Accel, Insight Venture Partners and Sequoia. BlackBerry said it will acquire Cylance, an artific
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Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: sara salinas, daniel roland, afp, getty images, david ryder, bloomberg, iron ox
Keywords: news, cnbc, companies, buys, closes, billion, sap, company, recently, ipo, capital, funding, cylance, bain, qualtrics, raised, deals, fund, vc, venture, including


Top VC deals: SAP buys Qualtrics; Bain closes a $1 billion fund

German software company SAP agreed to buy Qualtrics for $8 billion, weeks before the data analytics start-up was set to IPO. Qualtrics was founded in 2002 by brothers Ryan and Jared Smith and their dad, Scott, along with Stuart Orgill, who resigned from the board last year.

The company had 1,915 employees as of Sept. 30, and is based in Provo, Utah. The company didn’t raise venture funding for its first decade in business, but more recently raised capital from firms including Accel, Insight Venture Partners and Sequoia.

BlackBerry said it will acquire Cylance, an artificial intelligence and cybersecurity company, for $1.4 billion in cash. California-based Cylance develops AI-based products to prevent cyberattacks on companies and recently considered filing for an IPO, according to a report in Business Insider. The company had previously raised roughly $300 million in funding from investors including Blackstone Tactical Opportunities, Khosla Ventures and Dell Technologies Capital, according to Crunchbase.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: sara salinas, daniel roland, afp, getty images, david ryder, bloomberg, iron ox
Keywords: news, cnbc, companies, buys, closes, billion, sap, company, recently, ipo, capital, funding, cylance, bain, qualtrics, raised, deals, fund, vc, venture, including


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Billionaire investor Ray Dalio: Fed raised rates to a point where it’s hurting asset prices

Hedge fund billionaire Ray Dalio argued Thursday that the Federal Reserve has raised rates to a point where they’re hurting asset prices. The Fed has already raised rates three times this year, and one more is expected in December. “We’ve raised interest rates to a level that it’s hurting asset prices,” the founder of Bridgewater Associates said in an interview with CNBC’s “Squawk Box.” “We’re in a situation right now that the Fed will have to look at asset prices before they look at economic ac


Hedge fund billionaire Ray Dalio argued Thursday that the Federal Reserve has raised rates to a point where they’re hurting asset prices. The Fed has already raised rates three times this year, and one more is expected in December. “We’ve raised interest rates to a level that it’s hurting asset prices,” the founder of Bridgewater Associates said in an interview with CNBC’s “Squawk Box.” “We’re in a situation right now that the Fed will have to look at asset prices before they look at economic ac
Billionaire investor Ray Dalio: Fed raised rates to a point where it’s hurting asset prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: berkeley lovelace jr
Keywords: news, cnbc, companies, billionaire, ray, prices, investor, point, dalio, rates, hurting, economic, asset, fed, fund, raised, central, raise


Billionaire investor Ray Dalio: Fed raised rates to a point where it's hurting asset prices

Hedge fund billionaire Ray Dalio argued Thursday that the Federal Reserve has raised rates to a point where they’re hurting asset prices.

The central bank needs to start looking at monetary policy’s impact on asset prices before economic conditions, Dalio said, adding he would err on the side of caution on rate hikes.

The Fed has already raised rates three times this year, and one more is expected in December.

“We’ve raised interest rates to a level that it’s hurting asset prices,” the founder of Bridgewater Associates said in an interview with CNBC’s “Squawk Box.” “We’re in a situation right now that the Fed will have to look at asset prices before they look at economic activity. It’s a difficult position.”

On Wednesday, Federal Reserve Chairman Jerome Powell expressed confidence in economic strength, and said markets will have to get used to the idea that the central bank could raise rates at any time starting in 2019.

Last month, Powell said the cost of borrowing money was a long way from so-called neutral, sparking concerns about a more aggressive Fed tightening that led to October being the worst month for the S&P 500 since September 2011.

President Donald Trump has repeatedly express frustration with the central bank’s move to raise rates, arguing the Fed could disrupt the U.S. economic recovery.

In the CNBC interview, Dalio laughed off the notion that the Fed needs to raise rates so it would have room to make cuts if the economy were to take a major downturn. “That sounds like pretty bad logic to me,” he said.

Dalio also said the U.S. is late in the business cycle, perhaps the seventh or eighth inning, and assets are “fully priced.”

Bridgewater Associates is the world’s biggest hedge fund, with about $160 billion in assets under management.

In June, it was revealed that Bridgewater was becoming a partnership, giving top executives there more power in running the fund. While Dalio remains co-CIO and co-chairman, he gave up his co-CEO role in March 2017.

Dalio, who started Bridgewater in his two-bedroom apartment in New York City in 1975, now has an estimated net worth of $18.1 billion, according to Forbes.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: berkeley lovelace jr
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Hedge fund king Ray Dalio says the world is long stocks and that will mean trouble in a bear market

Hedge fund magnate Ray Dalio warned investors on Thursday the next bear market could be very painful since most are not prepared for it. “The world by and large is leveraged long,” Dalio, who runs the largest hedge fund in the world, said in a panel at the Greenwich Economic Forum in Connecticut. That will distinguish the winners and the losers” when the next bear market arrives. Dalio founded Bridgewater Associates, the largest hedge fund in the world, back in 1975. WATCH: CNBC’s full interview


Hedge fund magnate Ray Dalio warned investors on Thursday the next bear market could be very painful since most are not prepared for it. “The world by and large is leveraged long,” Dalio, who runs the largest hedge fund in the world, said in a panel at the Greenwich Economic Forum in Connecticut. That will distinguish the winners and the losers” when the next bear market arrives. Dalio founded Bridgewater Associates, the largest hedge fund in the world, back in 1975. WATCH: CNBC’s full interview
Hedge fund king Ray Dalio says the world is long stocks and that will mean trouble in a bear market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: fred imbert
Keywords: news, cnbc, companies, stocks, world, market, fund, sharp, hedge, rates, sp, dalio, ray, bear, mean, trouble, long, king


Hedge fund king Ray Dalio says the world is long stocks and that will mean trouble in a bear market

Hedge fund magnate Ray Dalio warned investors on Thursday the next bear market could be very painful since most are not prepared for it.

“The world by and large is leveraged long,” Dalio, who runs the largest hedge fund in the world, said in a panel at the Greenwich Economic Forum in Connecticut. “When there is a downturn, I don’t think there’s much to protect investors.”

Dalio did not call for a sharp downturn or the start of a bear market, but added: “Any investor should have a strategic asset allocation mix. In other words, what will be the neutral portfolio in an overall period of time and then figure out where there is alpha. That will distinguish the winners and the losers” when the next bear market arrives.

Stocks are in their longest bull market since World War II. Since the bottom of the financial crisis, the S&P 500 has more than tripled. The market’s jump in that time has been propelled in part by historically low interest rates from the Federal Reserve.

These low rates have created an incentive “to borrow money and buy stocks,” Dalio said. “That’s what caused the market to go up.”

However, the Fed is currently in the process of raising rates. The central bank has hiked rates three times this year and is forecast to hike once more in December.

Dalio’s comments come amid heightened volatility in the U.S. stock market. The S&P 500 fell into a correction in October before rebounding. The recent sharp moves come as investors worry about higher interest rates, global trade as well as a possible slowdown in the global economy.

“You have to create differentiation without much beta being built into the portfolio,” he added. “That will be the opportunity to distinguish those who were able to extract alpha and those who weren’t.”

Dalio founded Bridgewater Associates, the largest hedge fund in the world, back in 1975. Through the end of 2017, the fund managed about $160 billion in assets.

WATCH: CNBC’s full interview with hedge fund king Ray Dalio


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: fred imbert
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US and China rivalry goes beyond trade, says Ray Dalio, founder of world’s largest hedge fund

The dispute between the U.S. and China over trade deficits and surpluses is rather trivial compared to the broader philosophical differences between the world’s two biggest economic superpowers, Bridgewater Associates founder Ray Dalio told CNBC on Thursday. “The trade war, I think, can be worked out,” the billionaire investor Dalio said in a “Squawk Box” interview on CNBC. Dalio, co-CIO and co-chairman at Bridgewater, said the two nations’ polar opposite methods of governing is the broader, mor


The dispute between the U.S. and China over trade deficits and surpluses is rather trivial compared to the broader philosophical differences between the world’s two biggest economic superpowers, Bridgewater Associates founder Ray Dalio told CNBC on Thursday. “The trade war, I think, can be worked out,” the billionaire investor Dalio said in a “Squawk Box” interview on CNBC. Dalio, co-CIO and co-chairman at Bridgewater, said the two nations’ polar opposite methods of governing is the broader, mor
US and China rivalry goes beyond trade, says Ray Dalio, founder of world’s largest hedge fund Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: matthew j belvedere
Keywords: news, cnbc, companies, goes, billion, plan, fund, trade, thats, largest, hedge, bridgewater, founder, ray, dalio, rivalry, tariffs, chinese, worlds, china


US and China rivalry goes beyond trade, says Ray Dalio, founder of world's largest hedge fund

The dispute between the U.S. and China over trade deficits and surpluses is rather trivial compared to the broader philosophical differences between the world’s two biggest economic superpowers, Bridgewater Associates founder Ray Dalio told CNBC on Thursday.

“The trade war, I think, can be worked out,” the billionaire investor Dalio said in a “Squawk Box” interview on CNBC. But he argued the conflict goes “way beyond the trade war.”

Dalio, co-CIO and co-chairman at Bridgewater, said the two nations’ polar opposite methods of governing is the broader, more difficult issue to reconcile. “It goes back to Confucius in 500 B.C.,” he said.

“It’s basically a top-down versus a bottom-up type of approach,” said Dalio, whose China unit of Bridgewater last month launched its first onshore Chinese investment fund.

“When you look at the 2025 plan in China, the government believes that they should have a plan for making China great” and will coordinate all aspects of public and private enterprise to achieve their goals, he said. “That type of activity is objectionable to the United States” in its free market economy.

The China 2025 plan is a state-backed industrial policy that’s provoked alarm in the West, and is core to Washington’s complaints about Beijing’s technological ambitions.

Dalio appeared on CNBC from the Greenwich Economic Forum in Connecticut where he later spoke to the elite gathering of investment thought leaders.

On stage, he expanded on his thoughts on the U.S.-China rivalry.

“History has shown there’s a concept called the ‘Thucydides Trap,'” he said. “The idea is that, when you have an emerging country that’s a competitive country, competing with an existing power, there is a risk of conflict.”

“In the last 500 years, 16 times that’s happened. And in 12 of those times, there’s war,” said Dalio, in a cautionary tone, while reiterating his belief that the narrow trade dispute between the U.S. and China can be worked out.

A step towards a trade deal could start with a meeting between President Donald Trump and Chinese President Xi Jinping around the summit of the Group of 20 leaders later this month in Argentina.

Alleging a myriad of unfair trade practices, Trump initiated tariffs in March to pressure China to change its ways.

In September, the White House imposed its latest round of levies focused on $200 billion of Chinese products. In response, China put tariffs on $60 billion of U.S. goods.

Trump has also threatened additional tariffs of $267 billion, which would basically cover the rest of all Chinese imports into the U.S.

— CNBC’s Fred Imbert contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: matthew j belvedere
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With 65 percent of S&P in correction, maybe it is time for bonds again

Since these bond funds won’t actually have a finite maturity date, you could rebalance them periodically since their dollar amounts will fluctuate, some more than others. This way, you could stick with an appropriate risk/reward level and take advantage of price discrepancies between the bond funds. Obviously, the value of all four positions has changed, which offers a chance to the investor to rebalance the bond funds back to the original allocations. Newer bond ETFs offer the diversification o


Since these bond funds won’t actually have a finite maturity date, you could rebalance them periodically since their dollar amounts will fluctuate, some more than others. This way, you could stick with an appropriate risk/reward level and take advantage of price discrepancies between the bond funds. Obviously, the value of all four positions has changed, which offers a chance to the investor to rebalance the bond funds back to the original allocations. Newer bond ETFs offer the diversification o
With 65 percent of S&P in correction, maybe it is time for bonds again Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: mitch goldberg, guest contributor, scott olson, getty images, stephanie keith, michael phillips, chip somodevilla, scott mlyn, eddie seal
Keywords: news, cnbc, companies, maturity, correction, fund, sp, bonds, interest, bond, went, maybe, rates, etfs, investor, 65, funds


With 65 percent of S&P in correction, maybe it is time for bonds again

1. For individual bonds, you can ladder them.

This means buying bonds with consecutive annual maturities, i.e., maturing every year for the next five years, and when the bond that matures in one year matures, reinvest the principal into a new bond with a five-year maturity. It’s a compromise that allows for adjustments to changes in interest rates and inflation, but it lowers your interest income because you didn’t invest all of your funds into just the five-year bond.

2. With traditional mutual funds, you can build a diversified portfolio of bonds and maturities.

Since these bond funds won’t actually have a finite maturity date, you could rebalance them periodically since their dollar amounts will fluctuate, some more than others. This way, you could stick with an appropriate risk/reward level and take advantage of price discrepancies between the bond funds.

For example, let’s say an investor invests an equal amount into a money market fund yielding 2 percent and three different kinds of investment-grade bond ETFs: short-term, mid-term and long-term. Due to rising interest rates, the long- term went down 12 percent, the mid-term one went down 6 percent, and the short term one went down 2 percent, while the money market fund was up by 2 percent. Obviously, the value of all four positions has changed, which offers a chance to the investor to rebalance the bond funds back to the original allocations.

3. Newer bond ETFs offer the diversification of a bond fund with the maturity date of an individual bond.

ETF companies, including BlackRock and Invesco, have developed bond ETFs, both corporate and munis, with maturity dates. I use these to build highly diversified, laddered bond portfolios. They make this last part much easier to execute and understand. An investor can use these ETFs to build out a portfolio with consecutive annual maturities, reinvesting this year’s maturing bond ETF into a new one five years out.

It’s often been said that bonds are boring, but this year’s declines as the Fed raises rates have made them more exciting — and frightening. But for most of my clients who invest in them, the boring nature for which bonds can usually be depended on is a good thing.


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: mitch goldberg, guest contributor, scott olson, getty images, stephanie keith, michael phillips, chip somodevilla, scott mlyn, eddie seal
Keywords: news, cnbc, companies, maturity, correction, fund, sp, bonds, interest, bond, went, maybe, rates, etfs, investor, 65, funds


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Hedge funds are now negative for the year following stock market sell-off

October’s miserable market month took its toll across the board, including the hedge fund industry, which collectively turned negative for the year. Hedge fund returns declined 3.1 percent during the month, according to industry tracker eVestment, the second-worst month since 2011. The declines dragged funds into negative territory for the year, with a loss of 2.6 percent. “October’s fund performance and resulting impact on YTD performance are in stark contrast to the largely positive results he


October’s miserable market month took its toll across the board, including the hedge fund industry, which collectively turned negative for the year. Hedge fund returns declined 3.1 percent during the month, according to industry tracker eVestment, the second-worst month since 2011. The declines dragged funds into negative territory for the year, with a loss of 2.6 percent. “October’s fund performance and resulting impact on YTD performance are in stark contrast to the largely positive results he
Hedge funds are now negative for the year following stock market sell-off Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: jeff cox, saul gravy, getty images
Keywords: news, cnbc, companies, month, market, performance, stock, negative, selloff, funds, industry, fund, saw, percentthe, hedge, territory, following


Hedge funds are now negative for the year following stock market sell-off

October’s miserable market month took its toll across the board, including the hedge fund industry, which collectively turned negative for the year.

Hedge fund returns declined 3.1 percent during the month, according to industry tracker eVestment, the second-worst month since 2011. Equity funds caused the biggest damage, down 4.3 percent, while derivatives fell 3.7 percent and broad multimarket managers saw a decline of close to 2.5 percent.

The only class to make money was foreign exchange/currency, which rose just over 1 percent.

The declines dragged funds into negative territory for the year, with a loss of 2.6 percent.

“The search for bright spots in the industry was difficult in October as almost every hedge fund primary market and primary strategy was in the red for the month, although many are still in positive territory” year to date, eVestment said in a report. “October’s fund performance and resulting impact on YTD performance are in stark contrast to the largely positive results hedge funds saw in 2017 and 2016.”

Indeed, the industry has been on a winning streak, with returns of about 9 percent in 2017 and 5.8 percent the year before.

Bad as October was, hedge funds actually outperformed the stock market, as the S&P 500 fell 6.9 percent. The market’s losses began in mid-October, when investors began worrying about higher interest rates, corporate earnings that may be close to peaking, and the looming midterms that ultimately saw Democrats wrest House control from the Republicans.

For the year, though, equities continue to hold the edge. Investors who bought a plain index fund that tracks the S&P 500 would have been up about 3 percent through October and paid only a low fee, while the hedge fund industry, much of which still operates on the 2-and-20 model — respectively representing the percentage charge on assets and performance — lagged behind.

From a strategy standpoint, multistrategy credit led in October by being about flat, while event-driven activists lost 5.8 percent. For the year, multistrategy has been the best performer, with a 2.9 percent return, while activists have fared worst with a 6.9 percent decline.

The 10 largest funds have done best with a collective gain of 1.24 percent year to date, while the 10 largest managed futures funds are down 4.9 percent. At a country level, Brazil has led with a 0.75 percent gain while India is off 22.5 percent.


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: jeff cox, saul gravy, getty images
Keywords: news, cnbc, companies, month, market, performance, stock, negative, selloff, funds, industry, fund, saw, percentthe, hedge, territory, following


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Goldman shares head for the worst drop since 2016 as Malaysia seeks refunds on doomed deal

Goldman Sachs shares slumped the most in two years after Malaysia’s finance minister demanded a full refund of fees it paid the bank tied to a doomed investment fund. The company were down 6.8 percent Monday afternoon, leading shares of financial firms lower amid a broad decline in equities. Goldman has attracted scrutiny for its role in helping set up the Malaysian state investment fund known as 1MDB. The bank arranged three bond deals in 2012 and 2013 to fund 1MDB, raising $6.5 billion to supp


Goldman Sachs shares slumped the most in two years after Malaysia’s finance minister demanded a full refund of fees it paid the bank tied to a doomed investment fund. The company were down 6.8 percent Monday afternoon, leading shares of financial firms lower amid a broad decline in equities. Goldman has attracted scrutiny for its role in helping set up the Malaysian state investment fund known as 1MDB. The bank arranged three bond deals in 2012 and 2013 to fund 1MDB, raising $6.5 billion to supp
Goldman shares head for the worst drop since 2016 as Malaysia seeks refunds on doomed deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: hugh son, ramin talaie, getty images
Keywords: news, cnbc, companies, malaysian, worst, leissner, shares, investment, bank, refunds, fund, doomed, 1mdb, malaysia, head, drop, goldman, deal, seeks, role, refund


Goldman shares head for the worst drop since 2016 as Malaysia seeks refunds on doomed deal

Goldman Sachs shares slumped the most in two years after Malaysia’s finance minister demanded a full refund of fees it paid the bank tied to a doomed investment fund.

The company were down 6.8 percent Monday afternoon, leading shares of financial firms lower amid a broad decline in equities.

Goldman has attracted scrutiny for its role in helping set up the Malaysian state investment fund known as 1MDB. The bank arranged three bond deals in 2012 and 2013 to fund 1MDB, raising $6.5 billion to supposedly attract foreign investment. Instead, U.S. authorities accused a Malaysian financier of stealing billions of dollars from the fund and using some of that money to pay hundreds of million of dollars in bribes.

While a Goldman investment banker named Tim Leissner has plead guilty to participating in the scheme, the bank has said that Leissner and others deceived the firm and dodged its internal controls. In his guilty plea, Leissner said his actions to hide facts from Goldman’s compliance staff were part of the bank’s culture.

Now, Malaysian Finance Minister Lim Guan Eng said the country is seeking a full refund of the $600 million in fees Goldman was paid for the bond deals, according to a Bloomberg news report based on a radio interview.

Goldman also faces “significant fines” from a U.S. Department of Justice investigation into its role in the 1MDB scandal.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: hugh son, ramin talaie, getty images
Keywords: news, cnbc, companies, malaysian, worst, leissner, shares, investment, bank, refunds, fund, doomed, 1mdb, malaysia, head, drop, goldman, deal, seeks, role, refund


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France bestows rare honor on Russian wealth fund chief amid wider sanctions

France has bestowed one of its highest honors on Kirill Dmitriev, the head of Russia’s sovereign wealth fund, for his contribution to strengthening cooperation between Russia and France. Dmitriev, the chief executive of the Russian Direct Investment Fund (RDIF) that has $10 billion of reserved capital under management, was awarded the title of the “Knight of the National Order of the Legion of Honor,” by French President Emmanuel Macron, RDIF announced Friday. The Order of the Legion of Honor (O


France has bestowed one of its highest honors on Kirill Dmitriev, the head of Russia’s sovereign wealth fund, for his contribution to strengthening cooperation between Russia and France. Dmitriev, the chief executive of the Russian Direct Investment Fund (RDIF) that has $10 billion of reserved capital under management, was awarded the title of the “Knight of the National Order of the Legion of Honor,” by French President Emmanuel Macron, RDIF announced Friday. The Order of the Legion of Honor (O
France bestows rare honor on Russian wealth fund chief amid wider sanctions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: holly ellyatt, sergei savostyanov
Keywords: news, cnbc, companies, russian, honor, wealth, fund, bestows, chief, order, french, national, wider, russia, investment, rdif, rare, france, president, strengthening, sanctions


France bestows rare honor on Russian wealth fund chief amid wider sanctions

France has bestowed one of its highest honors on Kirill Dmitriev, the head of Russia’s sovereign wealth fund, for his contribution to strengthening cooperation between Russia and France.

Dmitriev, the chief executive of the Russian Direct Investment Fund (RDIF) that has $10 billion of reserved capital under management, was awarded the title of the “Knight of the National Order of the Legion of Honor,” by French President Emmanuel Macron, RDIF announced Friday.

The Order of the Legion of Honor (Ordre national de la Légion d’honneur) is the oldest French national order, established by Napoleon Bonaparte in 1802. Belonging to the Order is the highest distinction and honor in France; it is awarded by the president for outstanding service.

The award comes after several years of joint investment projects between France and Russia since 2013 with RDIF promoting the development of French companies in Russia and the entry of Russian companies into the French market.

“I am grateful to the President of France, Emmanuel Macron, for his recognition and such a high appreciation of RDIF’s contribution to strengthening bilateral relations between Russia and France,” Dmitriev said in a statement from RDIF.

“This award is a reflection of the progress we have achieved through investment cooperation in recent years, as well as an incentive for further proactive work.”


Company: cnbc, Activity: cnbc, Date: 2018-11-09  Authors: holly ellyatt, sergei savostyanov
Keywords: news, cnbc, companies, russian, honor, wealth, fund, bestows, chief, order, french, national, wider, russia, investment, rdif, rare, france, president, strengthening, sanctions


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