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Here are the latest updates:
One scoop to start: Pelham Capital, once a prominent name in London’s equity hedge fund sector, has experienced a significant decline in assets over the past three years. Poor performance, investor withdrawals, and team departures have caused the firm’s assets to plummet from $4.5 billion in October 2020 to approximately $1 billion today. Pelham Capital was founded by Ross Turner, a former fund manager at Lansdowne Partners, and is backed by Goldman Sachs’s publicly listed Petershill fund.
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The hedge fund boss eyeing a bid for the Telegraph:
During a lunch meeting at Marshall Wace’s London headquarters, Sir Paul Marshall, co-founder of the hedge fund manager, invited US billionaire Ken Griffin to join a consortium of investors preparing a bid for the Telegraph Group. Griffin, a staunch advocate of free expression, was intrigued by the proposal, given his commitment to maintaining the ethos of freedom of speech in the US and the UK. Marshall and Griffin are considered top contenders to acquire the Telegraph newspapers and Spectator magazine when they are put up for sale by Lloyds Banking Group in the coming weeks. The deal could be valued at over £500 million.
Marshall, who already holds a 45% stake in GB News and owns digital media group UnHerd, would gain significant visibility and influence as the owner of the Telegraph. His interest in media ownership is part of a long-standing effort to shape and influence the national conversation in the UK through his involvement in various fields, including politics, education, philanthropy, and media. Read the full story here to learn more about Marshall’s motivations behind the bid and his plans for the Telegraph if successful.
Regulators push St James’s Place to revamp fees:
The UK’s largest wealth manager, St James’s Place, is under regulatory pressure to ensure it meets the requirements of the UK’s new consumer duty. This pressure comes after criticisms of the firm’s lack of transparency regarding fees and significant penalties for early withdrawals. Shares in St James’s Place tumbled by 20% following reports of these regulatory issues, and the stock has lost 40% of its value since the beginning of the year.
To address regulators’ concerns, St James’s Place has proposed removing early withdrawal charges for new customers by mid-2025 and simplifying its fee structure. However, regulators have warned that these changes may not be sufficient. St James’s Place currently has a complex fee structure that includes upfront fees, ongoing annual charges, and early withdrawal penalties. The company has been asked to justify keeping exit fees for existing customers while scrapping them for new clients.
Read the full report here to understand the potential impact of these regulatory pressures on St James’s Place and the concerns raised by investors and regulators.
Chart of the week: The impact of the Israel-Hamas conflict on borrowing costs
The ongoing conflict between Israel and Hamas is causing borrowing costs to surge in neighboring countries. Investors are increasingly worried about the rapid escalation of the conflict, leading to wider spreads between the average yields on Jordan’s and Egypt’s dollar-denominated bonds and equivalent US Treasuries. This week, spreads have widened further as investors price in the risk associated with holding debt from these countries. Meanwhile, spreads across the broader emerging markets index have tightened. This report provides a detailed analysis of the impact on borrowing costs and the potential consequences for Jordan’s economy.
Five unmissable stories this week:
1. BlackRock, the world’s largest asset manager, surpassed expectations with a 13% year-on-year increase in profits. Despite this positive outcome, volatile markets resulted in the company’s first quarterly net long-term outflows since the early days of the Covid-19 pandemic.
2. The US Securities and Exchange Commission has adopted new rules that require lenders to publicly disclose data on borrowed stocks. This move aims to improve transparency in the market and ensure timely reporting of loan details.
3. Australia-based IFM Investors, a major infrastructure investor, has expressed concerns about investing in the UK due to political upheaval and uncertainty over government policy. The company has decided to limit further significant investments in new infrastructure projects in the country.
4. Odey Asset Management’s wealth business will be closing down and returning assets to clients following months of underperformance.
5. Blackstone is set to acquire Home Partners of America, a real estate company focused on single-family rental homes, for approximately $6 billion. This acquisition marks Blackstone’s expansion into the rapidly growing rental housing market.
These stories provide essential insights into recent developments in the asset management industry. Make sure you don’t miss out on the latest news!
That’s all for this week. Stay tuned for more updates and insights from the world of asset management. Remember to sign up for our newsletter to receive it in your inbox every Monday.
Have a great week ahead!
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