FT News Briefing Wall Street fell out of love with equity hedge funds
Feb 13, 2024
A major law firm is restricting access to databases for its Hong Kong lawyers, highlighting the strain in the region. Meanwhile, equity hedge funds are experiencing a massive $150 billion in client withdrawals due to underperformance. In a surprising twist, bitcoin has surged to $50,000 thanks to increased demand from spot ETFs. Additionally, a Chinese financier is innovatively turning local businesses into data gold mines, transforming revenue streams into tradable securities while navigating concerns over data transparency.
AI Snips
Chapters
Transcript
Episode notes
Hedge Fund Decline
- Equity hedge funds, known for their long-short strategy, have faced declining performance.
- Central bank intervention and market trends have challenged their short-selling approach.
MicroConnect's Data Advantage
- MicroConnect, a Chinese small business lender, gathers real-time consumer data.
- This data offers valuable insights into China's economy, otherwise considered a "black box."
MicroConnect's Business Model
- MicroConnect funds small businesses like noodle shops and karaoke bars in China.
- They collect revenue percentages daily through software, gaining valuable spending data.