Renaissance Technologies is telling clients there is a
"significant" risk of a market correction and that low
volatility may have given investors "a false sense of
security." The warning was delivered by Ed Hubner, the
computer-driven firm’s head of risk control, in a
December letter to clients, according to Bloomberg.
Renaissance, founded by Jim Simons, acknowledges a number of
positives that are helping to fuel the rally, including global
growth, corporate tax reform, and a business-friendly
government in the U.S. However, it questions whether current
valuations are justified, given large levels of sovereign
"With higher rates and more volatility a distinct
possibility, there is a significant risk that asset prices will
correct," Hubner said, according to the report. "While the fear
of missing out may not be a concern for equity investors,
increasing euphoria mixed with a bit of complacency certainly
Last year, Renaissance Institutional Equities (RIEF)
returned 14.5 percent, while Renaissance Institutional
Diversified Alpha Fund (RIDA) rose about 11.2 percent,
according to an HSBC document that tracks hedge fund
Och-Ziff Capital Management Group announced a major shake-up
Tuesday morning. Robert Shafir will succeed Dan Och as chief
executive officer, effective February 5. He will also join the
firm’s board of directors. Och will continue to
serve as chairman through March 31, 2019. After that, Och, the
largest shareholder, will remain involved with the firm, the
company said in its announcement.
Shafir’s hiring is somewhat of a surprise. He
is an outsider, previously serving as the CEO of Credit Suisse
Americas and co-head of private banking and wealth management.
He will be responsible for the day-to-day leadership and
management of the company, one of the few alternative
investments firms to be publicly traded. He will also be
responsible for the planning and execution of the
firm’s strategic direction, financial objectives
and client engagement. "Rob is a world-class executive who will
be a great asset to OZ as we continue our evolution as a firm,"
Och said in a press release. "His distinguished career
of over 30 years leading global financial institutions and
asset management businesses brings unique experience that will
benefit Oz significantly."
Och-Ziff’s thorny succession plans came to
light last week when the Wall Street Journal published a story
about how Och seemingly balked at an earlier plan to be
replaced by protégé James Levin. Levin remains at
the firm for now.
The announcement comes one day after Och-Ziff announced that
William Barr is resigning from the board, effective January 31.
He also served as chairman of the corporate responsibility and
compliance committee and as a member of the audit committee and
the nominating committee. "Mr. Barr’s resignation
relates to a disagreement over CEO succession, as well as
business and governance plans for the company," the company
stated in a separate regulatory filing.
Shares of Och-Ziff surged 4.35 percent, to close at $2.40,
on an otherwise lousy day for the stock market.
Och-Ziff’s stock, however, is still down nearly 40
percent since late October.
Tiger Global Management sold 2.778 million shares of eHi Car
Services Limited, the Chinese car rental services company. The
hedge fund firm headed by Chase Coleman now owns 14.2 percent
of the shares, held in the form of American Depositary