Stanley Druckenmiller told a closed-door meeting in New York that US rate cuts are 'no longer needed', dismissing Fed committee claims that fed funds rates are restrictive as 'ridiculous'. He argued that asset prices worldwide support his view, adding 'I believe in common sense.' Druckenmiller, who previously mentored Fed chair Kevin Warsh, noted his firm Duquesne Capital has reduced AI investments to 20% of six-month levels, calling the AI build-out phase 'getting late enough in the build-out that one has to start to worry a little.' However, he remains bullish on AI companies and is 'afraid to short the dollar' due to US advantages in AI development, saying Europe is 'nowhere' on this front.

Ken Griffin's Citadel hedge fund is shaking up its international equities leadership, with Drew Gillanders leaving and being replaced by Nabeel Bhanji, who joined from Elliott Management last year. Separately, JPMorgan Chase cut off lending to Situational Awareness hedge fund after star investor Leopold Aschenbrenner suffered the largest loss in hedge fund history.

Private credit fund Arini Capital Management has had a difficult year with soured bets pushing its flagship strategy into losses and two top traders departing. The London-based investor manages $22bn and has been involved in Europe's most challenging distressed debt trades.