Hedge Crunch Financial

FedEx recently shared its financial results for the first quarter of its 2026 fiscal year. The company made more money than expected, with total revenue (all the money FedEx brought in from deliveries and other business) reaching $22.2 billion, up from $21.6 billion the year before. Its net income (the profit after all expenses are paid) was $820 million, or $3.46 per share, compared to $790 million, or $3.21 per share, a year earlier. After accounting for certain costs, adjusted profit was $910 million, or $3.83 per share. News of these results caused FedEx’s stock price to go up by more than 5%.

The main reason for this improvement was an increase in the number of packages sent in the United States, which was up by 6%. FedEx also benefited from cost-cutting programs and efforts to make its delivery network work more smoothly. However, its freight shipping business did not do as well, mainly because it earned less money and labor costs went up.

FedEx kept its forecast for the rest of the year, expecting to make $17.20 to $19.00 in adjusted earnings per share, and predicting its revenue will grow by 4% to 6%. The company also bought back $500 million of its own stock, which can reward shareholders. FedEx still plans to split off its freight business as a separate company by June 2026.

The latest Sunday Times Giving List reveals that the UK’s wealthiest individuals have increased their charitable contributions by nearly £500 million this year, bringing the total given by the top 100 donors to £3.7 billion. The findings, published in partnership with the Charities Aid Foundation (CAF), show a notable rise from the previous year’s collective donation of £3.2 billion. For the first time, hedge fund managers lead the list, collectively donating £5.3 million each week.

Chris Hohn, a hedge fund manager with an estimated wealth of £8.15 billion, is named the most generous individual, having contributed £983 million to causes such as climate change, children’s health, and gender equality. Suneil Setiya and Greg Skinner, co-founders of Quadrature Capital, each worth about £980 million, have donated £270 million together over the past year and top the rankings when giving is measured as a proportion of wealth. Notably, Harry Styles has made his debut on the list at position 15, giving £5.2 million to social and humanitarian causes. Elton John is sixth, having donated £26.5 million to HIV/AIDS, the arts, and humanitarian initiatives.

The data indicates that philanthropy among the very rich is becoming increasingly important for charities facing high demand and rising costs. Ten out of the top 100 donors gave more than £100 million, while 64 donated less than one percent of their wealth. Experts like Neil Heslop of CAF and Jonathan Simmons of NPC emphasize the significant role that wealthy individuals play in supporting life-changing charitable work and highlight the need for ongoing, impactful, and strategic philanthropy to ensure every pound has the greatest possible effect on society.

Regal Partners, an Australian investment manager, is expanding its activities beyond hedge funds to include private asset investments such as hotel properties. The organization has acquired a 50% interest in Ark Capital Partners, a hotel investment firm active in Australia and New Zealand. Since 2021, Ark has allocated over $350 million to upgrade premium hotels, marking Regal’s first step into the hotel sector.

One component of this strategy is the purchase of the Mayfair Hotel in Adelaide for $75 million. This acquisition forms part of the foundation for Regal’s new Australian Hotel Opportunities Fund. Financing for the purchase includes bank loans and investors from outside parties, with completion expected this month. Regal is hoping to take advantage of current changes in the hotel market, where prices and demand are still bouncing back after recent travel restrictions and disruptions.

According to Regal’s chief executive, the company considers buying the hotel a strategy that could help investors earn steady profits. Leadership at Ark Capital Partners cited ongoing demand and identified opportunities within the hotel sector in both Australia and New Zealand.

Regal’s activity in private assets is in line with its existing investment areas, which include credit, real estate, and alternative strategies. The company continues to invest across multiple asset classes.

Rokos Capital Management is planning to open a new office in Abu Dhabi next year. This decision aims to help the company access more trading opportunities around the world, attract skilled employees, and build stronger relationships with important investors in the region.

The Abu Dhabi office will eventually include staff from various departments such as investment and trading, risk management, investor relations, operations, as well as legal and compliance experts. This will become the firm’s fourth office worldwide; Rokos already has offices in London, New York, and Singapore.

The company’s head of finance, Chris Irish, will move from London to Abu Dhabi and become the head of the Middle East business. The new office is expected to open in the first quarter of 2026.

The United Arab Emirates, especially Dubai and Abu Dhabi, has become popular among major hedge funds in recent years. The area offers benefits like zero personal income tax and a time zone that makes it convenient for staff to communicate with clients in both the East and the West. 

Recently, Rokos Capital Management announced plans to limit the size of its hedge fund to $20 billion and return some money to investors. The firm also intends to raise its management and performance fees. In the first half of this year, Rokos posted a return of 12.3%.

In today’s rapidly changing markets, institutional investors are striking a careful balance by allocating capital to both dependable stalwarts and firms with significant growth potential. A key trend this year is renewed interest in consumer staples—resilient companies whose products are integral to daily life and less sensitive to economic fluctuations. Firms like Procter & Gamble and Colgate-Palmolive exemplify this approach, providing a degree of portfolio stability that becomes especially attractive during periods of market uncertainty.

At the same time, institutional managers remain invested in the technology sector, particularly in companies capitalizing on advances in artificial intelligence and high-performance computing. Major semiconductor players, such as Micron Technology and Nvidia, continue to attract capital thanks to robust demand for their products and their critical roles in powering technological innovation.

Notably, there is also growing interest in sectors driving energy transformation and infrastructure modernization. GE Vernova, for instance, has delivered strong performance as investors focus on opportunities tied to clean energy and industrial efficiency. Additionally, companies that demonstrate strong execution and adaptability, such as Uber, continue to gain traction by leveraging their scale and global presence.

Overall, these investing patterns reflect a thoughtful mix of defensiveness and pursuit of innovation. The combined focus on established consumer brands and high-growth technology signals a desire among professional investors to navigate uncertainty while positioning for future opportunity. For observers of the financial markets, these shifts offer valuable insights into emerging areas of strength—and the strategies large funds are employing to adapt to ongoing changes in the investment landscape.

VAALCO Energy, Inc. (NYSE:EGY) is featured among the top dividend stocks trading under $20. In its latest quarterly report, the company announced it had secured a new revolving credit facility with an initial commitment of $190 million, which could potentially increase to $300 million, backed by specific company assets. Additionally, VAALCO reduced its full-year capital spending forecast by about 10% but maintained its production and sales targets.

For the first quarter of 2025, VAALCO reported revenue of $110.3 million, a 10% increase from the previous year, exceeding analysts’ expectations by $5.19 million. The company also noted that sales were near the high end of its guidance, and net revenue interest (NRI) production performed above expectations. This contributed to a net income of $0.07 per diluted share and an adjusted EBITDAX of $57 million.

At the end of the quarter, VAALCO held approximately $41 million in cash and cash equivalents. Operating cash flow was $32.7 million, higher than the $21.8 million reported for the same quarter last year. The company pays a quarterly dividend of $0.0625 per share, which reflects a dividend yield of 7.08% as of July 21.

Financial commentary suggests that while VAALCO has growth potential, there may be other opportunities in sectors such as artificial intelligence with a higher risk-reward profile.

A recent report by HSBC reveals that affluent investors in Singapore estimate they will need an average of US$1.39 million to retire comfortably, a figure that exceeds the global average of US$1.05 million. This amount is also higher than the retirement targets cited by investors in Hong Kong (US$1.11 million), Australia (US$1.23 million), and the United Arab Emirates (US$1.17 million). The findings are based on a survey of approximately 11,000 affluent investors aged 21 to 69, each with investable assets between US$100,000 and US$2 million, across 12 global markets.

The study also identifies Singapore as one of the top three destinations globally for opening overseas investment accounts, alongside the United States and Hong Kong. This highlights Singapore’s continued appeal as an international financial hub.

In terms of investment preferences, Singapore’s affluent investors are adjusting their portfolio allocations. While cash remains the largest single asset class at 24 percent, its share has decreased compared to the previous year. Meanwhile, allocations to gold and other precious metals have increased by 40 percent year-on-year. There is also a noticeable rise in interest in alternative assets, such as private equity and hedge funds, as investors seek greater diversification amid ongoing economic uncertainty and market volatility.

Despite concerns about rising living costs and economic uncertainty, nearly two-thirds of affluent investors in Singapore express confidence in achieving their long-term financial goals. This optimism is especially pronounced among younger investors, with about 70 percent of Gen Z and millennials indicating confidence, compared to 60 percent among Gen X and Baby Boomers. The report also notes a shift in financial priorities, with saving for leisure and personal well-being now emerging as the top objective, reflecting changing attitudes towards wealth and lifestyle among Singapore’s affluent population.

Nike’s stock surged 15.2% on Friday as investors reacted to signs that the company’s recent sales and profit declines may soon slow, even though new U.S. tariffs are expected to cost Nike nearly $1 billion. The company is working to diversify its manufacturing away from China to offset these rising costs.

For the quarter ending May 31st, Nike’s revenue dropped 12% to $11.1 billion, which was better than Wall Street’s forecast of a nearly 15% decline. Gross margins fell by 4.4 percentage points (or 440 basis points) and are expected to decrease further by 3.5 to 4.25 percentage points this quarter. Adjusted earnings per share were $0.14, much lower than the $1.01 reported in the same quarter last year, but slightly above analyst predictions. Same-store sales at Nike-owned stores rose 2%, beating expectations.

CFO Matthew Friend described the new tariffs as a “meaningful cost headwind,” with a $1 billion impact and a 1 percentage point hit to gross margins. He said Nike plans to fully offset these costs over time.

Nike is reducing its reliance on Chinese suppliers, which currently account for 16% of U.S. footwear imports. The company aims to lower this to the high single digits by year-end. A targeted U.S. price increase is also planned for this fall.

Nike’s struggles in China continued, with a 20% revenue drop in the region last quarter. The company has been diversifying its manufacturing since 2016, cutting its apparel and footwear production in China by significant margins.

Despite ongoing challenges—including weaker consumer confidence and stiff competition—Nike’s CEO expressed optimism about the company’s progress and future prospects. Nike is also launching new products and strengthening partnerships with key retailers as it works to regain momentum.

On Monday, May 12, 2025, global hedge funds recorded only modest gains, even as the U.S. stock market experienced a strong rally. The S&P 500 index surged 3.23% that day, closing at its highest level since March 26. In contrast, hedge funds on average were up just 0.60%.

The reason for this underperformance is linked to changes in hedge fund investment strategies over recent years. Since the start of Donald Trump’s trade war with China two years ago, hedge funds have gradually reduced their exposure to U.S. stocks and shifted more investments to other regions. This move was prompted by increased market uncertainty and a desire to avoid the volatility caused by Trump’s unpredictable tariff announcements.

In the weeks leading up to May 12, hedge funds had become more cautious. Many increased their short positions—betting that stock prices would fall—as they anticipated continued market instability. In fact, just before the rally, hedge funds were holding their most negative positions in five years. When the market suddenly surged on May 12, hedge funds had to quickly close these short positions, which limited their ability to profit from the rally.

Additionally, hedge funds did not benefit much from the sharp rise in technology and artificial intelligence stocks that day, because they had decreased their investments in these sectors prior to the rally. For the year through May 12, 2025, global hedge funds are up 2.12% on average, while the S&P 500 is down 0.69%.

In summary, despite a major market rally on May 12, 2025, driven by renewed optimism over U.S.-China trade relations, hedge funds saw only small gains. Their performance was held back by reduced investments in U.S. stocks, cautious positioning, and lower exposure to the sectors that led the market higher.

Recent data highlights a continued trend of smaller and mid-sized hedge funds outperforming their larger counterparts across several performance metrics. In 2023, funds managing under $1 billion posted strong double-digit gains, with macro and event-driven strategies delivering particularly strong results. This performance has drawn attention to the agility of smaller managers and their ability to exploit niche opportunities.

Year-to-date in 2025, mid-sized hedge funds—those with assets under administration (AUA) between $500 million and $3 billion—have led industry returns. According to Citco, these funds returned 0.3% in February 2025, while larger funds managing over $3 billion posted a weighted average return of -0.6%, highlighting increased volatility among the largest players.

Investor sentiment appears to be shifting in favor of smaller funds. IG Prime reports that 40% of investors exploring reallocations expressed interest in smaller managers, citing concerns over performance and risk management at larger firms.

Despite net outflows of $1.4 billion in January 2025, sub-$1 billion funds continue to attract attention due to their strategic flexibility and focus. Meanwhile, some large multi-strategy firms maintain their dominance through scale, allocating billions to external managers.

Overall, the performance and positioning of smaller hedge funds underscore a broader shift in industry dynamics, with adaptability becoming a key competitive advantage.