Hedgefund News Wrap: Week Ending 02/12/16

VISA BUYS 10 PERCENT STAKE IN SQUARE

(Yahoo! Finance) – It was announced that Visa is now a major shareholder in Square, not exactly shocking news.

Square, the mobile payments services, was co-founded and led by Twitter’s Jack Dorsey. Shares spiked nearly 14 percent before the opening bell today amid the news. With Visa gobbling up nearly 10 percent, they are now the second-largest shareholder as billionaire Leonard Blavatnik controls 11.4 percent.

 

Square is a small physical device that one can plug into their phone, making credit cards accepted almost anywhere. It’s commonly used at small business and outside vendors, such a farmers markets and sidewalk sales. It only makes sense that the world’s largest payment network operator married Square, as more and more processes and purchases are going mobile.

Read the entire article at Yahoo! Finance
More coverage: Seeking Alpha

JPMORGAN’S DIMON BUYS $25 MILLION OF COMPANY STOCK

(Fox Business) – Jamie Dimon, chief executive office of JPMorgan Chase went on a spending spree of his own, purchasing 500,000 shares of the company’s stock for more than $25 million. The purchase totaled a whopping $26.59 million, meaning he now owns 7.79 million shares worth $413 million at Thursday’s closing price.

The stock isn’t having as great of a year as Dimon, after falling nearly 20 percent amid the outlook for bank profits. Seems like that’s the name of the game these days, as rivals Citigroup, Goldman Sachs and Bank of America are feeling the pain as well.

Read the entire article at Fox Business
More coverage: CNN Money and Wall Street Journal

BLACKROCK’S $1.9 BILLION CREDIT HEDGE FUND SUFFERS WORST JANUARY

(Bloomberg Business) – Obsidian is asking, can we rewind and start 2016?

After having the worst start in its 19-year history, BlackRock Inc.’s global credit hedge fund, Obsidian, fell 4 percent in January. According to an investor update, the fall comes after failing to anticipate “the extend to which markets would trade in lockstep with commodities.”

It’s not like this fall will hurt the financial giant, as hedge funds account for less than 1 percent of Blackrock’s $4.6 trillion in assets under management.

Read the entire article at Bloomberg Business