"In many of our strategies we pursue a multifactor investment approach, which means we select investments based on multiple factors, one of which is value. Notably, multifactor stock selection has seen a challenging environment, with the value factor as the primarily culprit for underperformance," the email said.

Mr Busson, the ex-fiancé of Hollywood actress Uma Thurman and former boyfriend of supermodel Elle Macpherson, is removing his hedge fund from the Swiss stock market next week after racking up losses of more than $55m (£45m) in the past five years alone.

The removal, which takes place on Tuesday, will effectively end Mr Busson’s reign as a hedge fund manager and will crystalise significant losses for investors, which include pension funds and asset managers that run money for retirees….

In a statement sent to i, Mr Busson said: “Over the last few years, LumX has undergone a restructuring of its business, with termination of its activities as a manager of collective investment schemes in Switzerland as well as a reduction of its overall headcount.

“The obligations to maintain the listing lead to high costs, create administrative burden and absorb management time. Our current organisation and strategic focus do not justify the time and costs required to meet the...

A cash cliff spells trouble for U.S. unemployed, and everyone else [Reuters]Without new support, recipients face a substantial loss of income - particularly devastating for those like the Ramirez family who worked in hard-hit sectors like hospitality where new jobs are scarce. During high unemployment and a still-raging pandemic, the end of enhanced jobless benefits could drag on consumer spending, set off a wave of missed rent and mortgage payments and translate to a slower recovery, economists said…. That may pressure some people short on cash to risk their health to take a low-paying job at a restaurant or delivery company, which may expose them to the virus, said Julia Coronado, president of MacroPolicy Perspectives and a former Federal Reserve economist. “That’s a very terrible choice for our policymakers to be telling people they need to make,” she said.

The looser restrictions approved on Thursday will allow banks to more easily make investments in various areas of venture capital.

The rule changes will also allow banks to avoid having to set aside cash when making derivatives trades between different affiliates of the same firm.

The Federal Reserve on Thursday said a prolonged economic downturn could saddle the nation’s biggest banks with up to $700 billion in losses on soured loans….

Banks, which will announce their dividend plans for next quarter as soon as Monday, won’t be able to make payouts that are greater than their average quarterly profit from the four most recent quarters.

The Fed also barred them from buying back shares in the third quarter.

U.S. Wins Round in Fight Over PPP Bankruptcy Ban [WSJ]While Congress didn’t bar bankrupt businesses when it set up the PPP, the SBA said in April that opening up access to companies in chapter 11 “would present an unacceptably high risk of an unauthorized use of funds or non-repayment of unforgiven loans….”More than 30 companies nationwide have filed lawsuits challenging the SBA, hoping to win access to the PPP notwithstanding their bankruptcy proceedings. Hidalgo County Emergency Service Foundation, the largest ambulance service in South Texas, was one of the first. A bankruptcy judge sided with the company, ordering its lender to disregard the PPP’s bankruptcy ban when processing the application….. Under binding precedent, no court can issue such an injunction against SBA Administrator Jovita Carranza, according to the decision.

Blackstone adds Google CFO Ruth Porat to its board of directors [MarketWatch]Blackstone, one of the world’s largest real-estate investors, in...

Steve Schwarzman never gives to Democratic candidates. Literally never, according to OpenSecrets.org. Druckenmiller hasn’t given much to that side recently, either, and when he did, it tended to go to the likes of Tulsi Gabbard.

So what’s so special about this Democratic candidate? This Michelle Caruso-Cabrera from New York’s 14th congressional district, covering some seriously unglamorous stretches of Queens and the Bronx?

Oh, right: There’s nothing special about Michelle Caruso-Cabrera other than the fact that she isn’t the current representative for the 14th: Alexandria Ocasio-Cortez.

“Finance is, like, done. Everybody’s bought everybody else with low-cost debt. Everybody’s maximised their margin. They’ve bought all their shares back . . . There’s nothing there. Every industry has about three players. Elizabeth Warren is right.”

The SEC said it had observed private equity and hedge fund managers inaccurately allocating fees and expenses that led to certain investors overpaying for services such as advice from consultants and due diligence on deals that failed…. It also found examples of managers overcharging clients for fees paid to lawyers and placement agents as well as for travel and entertainment expenses…. The SEC also found examples of investors paying excessive management fees and performance fees because private fund managers were failing to value their holdings in accordance with accounting rules…. Another area of concerns highlighted by the SEC was the misuse of material non-public information (MNPI). The regulator noted failures by private fund managers to address the risks posed by their employees interacting with corporate executives or other insiders at publicly traded companies that would have access to sensitive information.

Symphony’s new system provides a version of WhatsApp on its platform for its clients. WhatsApp conversations held on the platform can then be recorded so that lenders’ compliance teams can analyse the data to monitor employees’ exchanges with colleagues and clients, a person familiar with the matter told FN.

Stefan Hoops, head of the corporate bank at Deutsche Bank, said: “The integration of WhatsApp with Symphony means we, and other businesses in the bank, can make interactions with our clients even easier when they need us most.”

U.S. Initial Jobless Claims Worse Than Forecast for Second Week [Bloomberg]Initial jobless claims in regular state programs fell to 1.48 million last week from an upwardly revised 1.54 million in the prior week, Labor Department data showed Thursday. Continuing claims, a closely watched figure that tracks the overall pool of recipients, declined by more than forecast to 19.5 million in the week ended June 13….“Even though you’re obviously getting a lot of people rehired, the people being laid off is eating into that quite a bit,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. “What you’re seeing is a second leg of layoffs. Now it’s not just the service sector being shut down. Now it’s businesses saying, ‘Well, I don’t need all these people.’”

The Mets posted such a steep net loss in 2019 that the managing partnership made a capital call of about $45 million, of which the remaining eight limited partners had to pay roughly $15 million. This season—if MLB’s plan for a 60-game season is carried out—the Mets will likely ask their investors to put in even more money than last year because of the absence of stadium revenue.

In a decision issued on Monday, Justice Lucy Billings of the state supreme court in Manhattan called Lauren Bonner’s comment a “fair and accurate” description of her related civil lawsuit against the former president Douglas Haynes, Point72 and the firm’s billionaire founder Steven A. Cohen.

The Big U.S. Stock Indexes Are Telling Different Stories [WSJ]The Nasdaq’s advantage over the Dow and S&P 500 is the biggest since 1983. The gap between the S&P 500 and the Dow is the widest since 2002, when the Dow was ahead…. A handful of growth stocks that have surged this year have an outsize influence on the Nasdaq and the S&P 500. Apple Inc., Microsoft Corp., Amazon.com Inc., Google parent Alphabet Inc. and Facebook Inc. together account for about 40% of the Nasdaq and 20% of the S&P. Of those stocks, only Apple and Microsoft are in the Dow.

The DOJ’s antitrust division could help the SEC determine whether exchanges’ data fees are subject to competition, Mr. Clayton added, seated alongside Assistant Attorney General Makan Delrahim, the DOJ’s top antitrust official….

Wall Street banks, brokers and high-speed trading firms have complained for years that the country’s big three stock-exchange operators charge too much for market data, particularly the feeds that provide the most complete view of market activity. The exchanges counter that their fees are reasonable and that firms can buy cheaper, public data feeds instead.

“I don’t kid. Let me just tell you. Let me make it clear,” Trump told reporters, when pressed on whether his comments at a campaign event Saturday in Tulsa, Okla., were intended as a joke.

Saba Capital Management founder Boaz Weinstein is no stranger to a big score, nor to the publicity that tends to come with it. And he’s got them both again, no matter how much kvetching he might do about how little publicity he wants, having given two substantive interviews to Institutional Investor laying out just how much he’s been killing it while coronavirus has been killing 400,000 people.

Not that Weinstein knew or even suspected the nightmare about to strike the globe. He didn’t need to. He just needed to know it made no sense for high-yield CDS on airlines to cost the same as high-yield CDS on Verizon.

Yes, the SEC will get to continue to seek any ill-gotten gains, often the lion’s share of what it actually collects—but only ill-gotten gains, less any “legitimate” business expenses incurred by the people ripping off their investors, and they might not be allowed to do anything they want with them.

After three years at the helm of the Securities and Exchange Commission, Jay Clayton had made it known to colleagues, friends and the Trump administration that he was itching to go back to New York.

The longtime and highly-paid corporate lawyer, who had spent his career at Sullivan & Cromwell representing some of the world’s biggest financial institutions, including Goldman Sachs and Deutsche Bank, wanted to be closer to his family.

The cuts are mainly concentrated in sales and support areas, but have also affected trading teams focused on asset-backed securities, according to people with knowledge of the matter, who asked not to be identified because the information is private…. While CQS still manages $17 billion, up from about $15 billion in March, its share of lucrative hedge fund assets has shrunk to about a third of the money managed by the firm, down from around half last year. That’s putting pressure on revenues.

So by now you that Bolton alleges that his former boss routinely sought to prostitute his office in exchange for foreign help in securing his reelection, making promises he couldn’t keep about restraining criminal inquiries the despots he admires and aspires to become didn’t care for, including to the leader of the country Trump has spent most of his tenure (and certainly most of the last three months) attacking, Xi Jinping of China.

We also have long known that Trump is not a fan of bitcoins, insofar as he understands them. But now, thanks to Bolton, we know Trump’s bitcoin FUD dates back more than a year before his tweet confirming it last year.

Fed adds coronavirus scenarios to this year’s bank stress tests [CNBC]“The larger issue is the unprecedented uncertainty about the course of the COVID event and the economy,” [Federal Reserve Vice Chair for Supervision Randal] Quarles said in prepared remarks. “The range of plausible forecasts is high and continues to shift. We don’t know about the pace of reopening, how consumers will behave, or the prospects for a new round of containment. There’s probably never been more uncertainty about the economic outlook.”Consequently, the Fed has added three conditions that examine how banks would fare going forward:· A V-shaped recovery that mirrors how quickly the economy fell, with much of output and employment regained by the end of the year.·A U recovery that is slower with a smaller level of output and employment regained.·A W-shaped situation with “a short-lived recovery followed by a severe drop in activity later this year due to a second wave of containment measures.”

The charges stem from an issue in 2016, when an unprecedented outage in the bank’s swap reporting platform kept Deutsche unable to report data for multiple asset classes for five days, exacerbating existing report problems at the firm, the CFTC said. In 2015, Deutsche agreed to a CFTC order to improve its internal controls after being charged with failures in swaps reporting.