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Jeffrey Smith, the Chief Executive officer of Starboard Value has secured a seat on the board of Kenvue, as part of a settlement in the four-month proxy battle between the activist hedge fund and the consumer health company, according to a report by Reuters.

Joining Smith on the board are two independent directors: Sarah Hofstetter, President of e-commerce analytics firm Profitero; and Erica Mann, former Head of Bayer’s Consumer Health division.

While Starboard had initially nominated four candidates, the hedge fund has agreed to withdraw its slate following the agreement. The move aims to address concerns over Kenvue’s performance, particularly in its skin health and beauty segment, which includes Neutrogena and Aveeno.

Starboard and its affiliates currently own approximately 22 million shares in Kenvue, representing a 1.1% stake. In a statement, Smith reaffirmed confidence in the company, citing the strong potential of its portfolio of iconic brands and market-leading positions.

Despite the board changes, Kenvue’s stock fell nearly 2% to $23 in late-morning trading on Wednesday. Since its 2023 spinoff from Johnson & Johnson, the company has lost around 13% of its market value, now standing at $44.76bn.

This latest development underscores growing shareholder pressure for strategic improvements as Kenvue seeks to enhance its brand performance and drive long-term value creation.

Australia’s AUD237bn Future Fund has appointed activist and event-driven hedge fund Effissimo Capital Management to its roster of active equity managers, joining the likes of Maple-Brown Abbott and Wellington Investment Management, according to a report by Investment Magazine.

Singapore-based Effissimo has played a pivotal role in corporate governance battles in Japan while maintaining a low public profile. The fund was founded in 2006 by former associates of Yoshiaki Murakami, the activist investor behind Japan’s influential Murakami Fund, who later faced a suspended prison sentence for insider trading.

Effissimo has secured backing from institutional investors, including the Canada Pension Plan Investment Board and several university endowments, according to media reports.

The firm made headlines in 2021 when it leveraged its 10% stake in Toshiba to push for an independent investigation into allegations of management pressure on investors, including Harvard University’s endowment. The resulting probe led to the ousting of Toshiba’s chairman — a rare victory for shareholder activism in Japan.

More recently, Effissimo acquired a 2.5% stake in Nissan following the carmaker’s stock decline, continuing its long-running pressure campaign for Nissan to buy out Nissan Shatai, its subsidiary, where Effissimo holds a 30% stake.

While the Future Fund declined to comment on the appointment, the move aligns with its renewed focus on active equity management. The shift comes after the Future Fund’s 2017 overhaul, which eliminated active equity managers in favour of a more passive, beta-driven approach.

Millennium Management founder Izzy Englander is considering distributing equity in the $76bn hedge fund firm to key executives for the first time, marking a significant shift in the firm’s structure as he prepares for its long-term future, according to a report by the Financial Times.

Since its founding in 1989, Millennium has remained entirely owned by Englander, now 77, but discussions are underway to open up ownership to senior leaders. The report cites unnamed sources familiar both the matter as highlighting that the move, still in its early stages, would align executive interests with the firm’s investors while providing top talent with a greater stake in Millennium’s success.

Englander remains actively involved in decision-making and has shown no signs of stepping back. However, he has been gradually institutionalising Millennium, transitioning it from a traditional hedge fund into what some industry insiders liken to a division of an investment bank.

In his annual investor letter, Englander underscored this vision, stating: “What we’ve built is larger than any one person, and it’s designed to endure and thrive.”

In addition to internal equity discussions, Millennium is exploring a potential strategic partnership with BlackRock, which could involve the world’s largest asset manager taking a minority stake in the firm.

Millennium is also expanding its investment strategies, having raised an additional $10bn last year. The firm is considering launching a new fund focused on less liquid assets, including private credit, which would mark its first expansion into a new strategy in over 30 years.

Millennium has already aligned its employees’ financial interests with investors, with more than $10bn of the firm’s assets belonging to Englander and its staff.

Pierre Andurand’s flagship hedge fund has suffered a steep decline in the first two months of 2025, erasing its strong gains from last year as volatility continues to roil commodity markets, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing that the Andurand Commodities Discretionary Enhanced fund dropped 24% in February, extending its year-to-date losses to 37%. The slump comes on the back of a 50% gain in 2024.

A spokesperson for Andurand Capital Management declined to comment.

Andurand, one of the last remaining hedge fund managers specialising in oil trading, is no stranger to extreme market swings. Unlike larger commodity funds that have shifted towards steadier, lower-volatility returns, Andurand’s strategy has no set risk limits, often resulting in outsized gains – or sharp falls.

Andurand’s firm managed approximately $900m as of October 2024, though more recent figures are unavailable.

While the exact drivers of this year’s losses remain unclear, Andurand has been bullish on cocoa and copper markets in recent months. He also re-entered oil trading after briefly stepping away from the commodity in 2024.

Andurand’s latest losses contrast with his stellar run from 2020 to 2023, when his fund surged more than sevenfold.

Multi-strategy hedge fund major Millennium Management has committed $2bn to support the launch of Lane42 Investment Partners, a new alternative asset management firm founded by former Ares Management Executive Scott Graves.

The investment underscores Millennium’s growing focus on private credit and opportunistic investing, as institutional demand for flexible capital solutions continues to rise.

As part of the deal, Millennium Management has taken a minority equity stake in Lane42, which will be based in Los Angeles with plans to expand to New York. Lane42 will provide both debt and equity financing to companies across the public and private spectrum — including healthy, stressed, and distressed businesses.

Unlike traditional private equity firms, Lane42 will not require control stakes in the businesses it supports. Instead, Graves envisions a firm that can capitalise on a rapidly evolving market landscape, where private equity firms are increasingly seeking liquidity and public and private financing options are converging.

“I think it’s a really good time for a new entrant,” said Graves, who will serve as CEO and CIO, in an interview with Bloomberg. “I’m excited to architect a firm that’s capable of addressing companies’ capital needs at a time of macroeconomic turbulence.”

Graves, 54, previously served as co-Head of Private Equity and Head of Special Opportunities at Ares Management, after spending 15 years at Oaktree Capital Management. His track record in complex capital solutions and opportunistic investing aligns with Millennium’s interest in non-traditional credit and equity investments.

By Winston Ma, CFA, Esq., Executive Director of Global Public Investment Funds Forum and Adjunct Professor at NYU School of Law

 

Rio Tinto’s decision to grant its Australian shareholders the opportunity to vote on a resolution calling for an independent review of its dual-listing structure has been welcomed by London-based activist hedge fund Palliser Capital.

The global mining giant amended the notice of its annual general meeting (AGM) on Tuesday, ensuring that shareholders of Rio Tinto Limited — the company’s Australian-listed entity — can cast their votes on the proposed review.

Palliser Capital, which has been advocating for governance changes at Rio Tinto, has been pushing for an assessment of whether the dual-listing structure, which splits Rio Tinto’s corporate base between London and Sydney, remains in the best interest of shareholders.

Digital asset investment products saw a third consecutive week of outflows last week, marking the largest weekly outflows on record at a total of $2.9bn, and bringing the three-week total to $3.8bn, according to a the latest Digital Assets Fund Flows Weekly Report from CoinShares.

Bitcoin bore the brunt of the weaker sentiment, seeing $2.59bn outflows last week, with minor inflows into short bitcoin totalling $2.3m.

Sui was the best performer, seeing $15.5m inflows, with XRP following with $5m in inflows.

Singapore-based digital assets platform Coinhako is to join Fusion Digital Assets, TP ICAP’s FCA registered UK-based wholesale spot cryptoasset exchange as a trading counterparty providing and consuming liquidity on the exchange.

The collaboration will see the integration of Coinhako’s advanced trading and liquidity solutions with Fusion Digital Assets, helping facilitate risk exchange and increase liquidity in response to the growing demand of the wholesale market.

Kelvin See, Head of Trading, Coinhako: “This announcement aligns Coinhako with a significant increase in institutional adoption of cryptocurrencies, spurred by the formation of digital assets as a standalone investment class. For sophisticated investors and trading firms, liquidity, transparency, and price slippage are crucial considerations, and this partnership will cater to those needs and will help drive further adoption.”

Malcolm Pratt, Head of Hedge Fund sales Trading in Europe at Bank of America has resigned to take up a new role at Clear Street, a fast-growing independent prime broker which launched operations in the UK in December, according to a report by eFinancial Careers.

Pratt, who joined Bank of America from Goldman Sachs in 2017, was a key figure in the firm’s hedge fund sales efforts. According to the report, he is expected to help establish the execution business at Clear Street, though this has not been officially confirmed.

Pratt is not the only senior hire at Clear Street, which has a valuation of $2bn following a funding round two years ago. Matthew Cyzer, former Co-Head of European Equity Execution Services at Goldman Sachs, joined earlier this month as Global Head of Markets for Europe. Given their overlapping tenure at Goldman, Pratt is likely to work on Cyzer’s team, with further hires expected as Clear Street expands its footprint in Europe.

Cisu Capital, the London-based hedge fund founded by former Elliott Management portfolio manager Mark Wills, has successfully launched a commingled fund with a commitment from a large endowment, according to a report by Business Insider.

The firm initially began trading in August 2023 with a $200m separately managed account (SMA) from Squarepoint.

The launch stands out in a market where many new hedge funds have been steered towards SMAs rather than traditional commingled structures. SMAs have become the preferred route for large allocators, offering greater transparency, customised risk controls, and negotiable fee structures. A Goldman Sachs report highlighted that SMA capital grew by 27% year-over-year, with more than half of the capital in hedge funds under $500m now held in SMAs, up from 41% in 2020.

Cisu Capital focuses on the financial services sector and joins a wave of new launches from former Elliott Management investors in recent years.

Dubai is stepping up its bid to attract hedge fund startups by launching a dedicated workspace at the Dubai International Finance Centre (DIFC) for firms looking to establish a foothold in the region, according to a report by Bloomberg.

The DIFC is retrofitting a building to provide short-term, plug-and-play offices for managers piloting their operations before scaling up, its the facility set to open its doors by the end of April.

The report cites unnamed sources familiar with the matter as revealing that the DIFC Hedge Funds Centre will aim to accommodate 20 to 30 firms by year-end. The 10,000-square-foot space will be housed in the financial district’s former court building, and offer fully equipped offices, networking areas, reception services, and trading infrastructure for firms that receive in-principle regulatory approval.

The move reflects growing demand from hedge funds looking to expand into Dubai. After roadshows in San Francisco and New York, DIFC expects most interest to come from US and UK-based firms, though managers from Singapore, Hong Kong, and India are also eyeing the opportunity.

Dubai’s hedge fund ecosystem has grown significantly, with 75 firms — including Andurand Capital Management and Point72 Asset Management — already operating in the emirate. Many of these firms manage over $1bn in assets, but DIFC’s latest initiative signals a shift toward attracting smaller spin-outs and independent launches.

The new Hedge Funds Centre also addresses rising demand for office space, as prime locations like the ICD Brookfield tower are nearing full occupancy. DIFC has confirmed that rents in the new space will be more affordable.

Meanwhile, neighbouring Abu Dhabi has also seen a surge in hedge fund activity, driven by the $1.7tn in assets controlled by its sovereign wealth funds. The capital has responded by expanding its financial district to a nearby island, increasing its capacity tenfold.

Fast-casual chain Portillo’s is facing a proxy fight as Engaged Capital, an activist hedge fund with an 8.6% stake in the business, pushes for significant operational and strategic changes, according to a report by QSR.

The hedge fund has nominated two industry veterans — Charlie Morrison, former CEO of Wingstop, and Nicole Portwood, ex-CMO of Salad and Go — for seats on Portillo’s board, arguing that the chain is underperforming despite strong fundamentals.

Engaged Capital acknowledges Portillo’s strong average unit volumes (AUVs), unique menu offering, and successful market expansion. However, the hedge fund contends that outdated operations, ineffective marketing, and an inefficient unit development strategy have hindered growth and led to a depressed valuation.

In a statement, Engaged Capital emphasised that while these issues are fixable, the company must act with urgency to implement technology enhancements, operational efficiencies, and targeted marketing investments to drive traffic and sales

“We were forced to resort to this public nomination after months of unsuccessful private discussions focused on adding Mr Morrison to the Board,” the firm stated, calling for further incremental board changes to enhance leadership capabilities.

Portillo’s has confirmed receipt of Engaged Capital’s nomination notice and stated that it values shareholder input, while highlightinf its ongoing improvements, including: kiosk rollouts at all locations, AI-powered drive-thru cameras, and enhanced third-party delivery accuracy; drive-thru time reductions and a new smaller restaurant prototype that cuts costs by over $1m per unit; and expanded advertising beyond Chicagoland, a new loyalty programme, and a menu simplification initiative.

Portillo’s also noted its decision to appoint Chipotle CFO Jack Hartung to its board — an introduction facilitated by Engaged Capital — as evidence of its willingness to act on constructive shareholder feedback.

By William J. Kelly, CAIA, Founder & Managing Member, Educational Alpha LLC

Throughout 2025, CAIA is convening eight exclusive leadership roundtables in key financial hubs worldwide—Mumbai, Los Angeles, Toronto, New York City, London, Hong Kong, Singapore, and Qatar. Held under the Chatham House Rule, these intimate forums bring together 8–12 C-suite executives from asset management firms, asset owners, general partners, and industry thought leaders to debate the future of the investment profession.

Balyasny Asset Management is raising $350m for its first-ever dedicated venture capital fund, marking a strategic push into growth-stage enterprise tech startups, according to a report by PitchBook citing sources familiar with the matter.

The fund, Atlas Growth LP, which is being raised under BAM Corner Point, a newly created affiliate, is led by Rashmi Gopinath, formerly a General Partner at B Capital specialising in enterprise software investments, and Kristin Baker Spohn, who previously oversaw healthtech investments as a GP at CRV.

Balyasny’s move follows a broader trend among major hedge funds — including Point72 Asset Management, D1 Capital, and Tiger Global — which have aggressively expanded into private market investing over the past decade.

The $22bn multi-strategy firm started raising the fund in January 2025, according to a person familiar with the effort and regulatory filings.

The venture fund will focus on AI, data infrastructure, healthtech, and cybersecurity — areas where enterprise adoption is accelerating and valuations remain competitive.

Founder Dmitry Balyasny has long believed that the largest hedge funds would eventually deepen their involvement in venture capital, both to enhance returns and to sidestep capital constraints in traditional hedge fund strategies.

Balyasny Asset Management has previously invested in select startups through its existing funds, but Atlas Growth represents its first standalone venture strategy.

The firm is leveraging its hedge fund expertise in technology investing, particularly in AI, to identify promising startups. BAM Corner Point is also working closely with Balyasny’s portfolio managers to evaluate deals, a person familiar with the plans said.

Rather than adopting a broad-based approach, Gopinath and Baker Spohn plan to maintain a more concentrated portfolio, aiming to differentiate Atlas Growth from larger venture firms that deploy capital across a wider range of deals.