As Wuhan, China, ended its first week of quarantine, Tribeca Investment Partners portfolio manager John Stover began to bet on a recovery.
“You can pick your own adventure in terms of what you read and how scared you want to get about it,” said Singapore-based Stover, whose firm manages about A$1.9 billion (US$1.28 billion). “But risk/reward has looked pretty good over the last couple of weeks.”
For many traders on Wall Street, the number of confirmed COVID-19 cases has meant a frenzied search for safe havens, but some hedge funds are looking for bargains.
Stover in July last year started the US$50 million Vanda Asia Credit Fund.
Despite the outbreak, Stover is getting interest from investors, and with annualized gross returns of 12.2 percent and volatility of 2.1 percent, last month was his best so far.
Predictions of post-outbreak bounces are not simply based on hunches, said Cleargate Capital LLC managing partner and portfolio manager Edward Bozaan, who operates a long-short hedge fund focused on Europe.
Bozaan told investors in a letter that markets ended higher in the six to 12 months from the first announcement of previous viral crises, such as SARS and Ebola.
“Once the number of cases has peaked and begins to fall, it will probably be an excellent time to add to the sectors hurt the most: travel, cruise companies, entertainment and emerging markets,” he wrote.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB