Hedgeweek Commentary: Behind the hedge fund news - 22.08.08
HedgeWeek - London, UK
It's an ill wind that blows nobody any good, they say, and that's certainly the case for hedge fund manages. In a tough economic environment that has already taken a number of notable hedge fund scalps, other managers are revelling in the opportunities offered by high levels of volatility and the opportunity to pick up investments at bargain prices from distressed or suddenly-cautious institutions. Two traders famous for different reasons, George Soros and Brian Hunter, are back in the news as they seek to turn unruly markets and depressed sentiment to advantage - how successfully, will only become clear later.
Hedge Fund Association Names Exec. VP
FINalternatives - New York, NY, USA
Hedge fund trade group, Managed Funds Association, has tapped Roger Hollingsworth to serve as executive vice president and managing director of government relations.
Shoreline Beats Caxton, Lehman to Win Annual Hedge-Fund Regatta
Bloomberg - USA
When the safety cord around his team's sailboat snapped at the start of the fifth annual hedge-fund regatta, Ned Glenn, a corporate compliance lawyer for Merrill Lynch, plunged overboard into the New York harbor with 16 bows bearing down on him.
Biden No Hedge Fund Lover
Hedge Fund Net - New York, NY, USA
According to Joseph Biden, the hedge fund industry and private equity deserve the blame for the global credit crisis. The Delaware senator and running mate of Democratic presidential nominee Barack Obama made that assertion in a primary debate last year when he was himself running for president.
A New Stream for Hedge Fund Investors?
Seeking Alpha - New York, NY, USA
The news of the demise of former CNBC anchor Ron Insana’s venture has been a catalyst for more questions about the hedge fund business model. Are these project returns persistent (also here)? Are there cheaper alternatives?
Developing markets ideal for hedge funds
Gulf Daily News - Manama, Bahrain
Developing markets are fertile ground for hedge funds, if the funds have experienced managers, according to Paulson and Company founder and chief executive officer John Paulson."Underdeveloped markets are less efficient and create more opportunities," Mr Paulson said in an interview in the forthcoming issue of The Report Bahrain 2008.
A Year Later, Quants Aren't As Susceptible To Meltdown
CNNMoney.com - USA
"OK Computer": It's the name of a notable 1997 Radiohead album, and would also be an apt title for quantitative hedge funds' performance since their near-collapse last August.
Breaking even becomes hedge funds' mantra
Globe and Mail - Canada
Joe E. Lewis, the late American nightclub comic and inveterate horse player, once quipped: "I hope I break even. I need the money." That could very well become a mantra in the hedge fund world, where even the best and brightest of managers with impressive track records have been suffering through some of their worst results in years.
Most hedge funds don't plan ahead on management - study
Reuters South Africa - Johannesburg, South Africa
Hedge fund firms often pride themselves on being ahead of the curve on financial trends but roughly 70 percent lag behind on planning for their own futures, according to a study to be released on Tuesday.
Hedge Fund Manager's Notebook
Seeking Alpha - New York, NY, USA
Why the Euro is Tanking, MGM's Folly, and an Attractive Farming Stock.
Kass: Hedge Fund Turmoil Takes Its Toll
TheStreet.com - USA
Some are of the view that today's commotion has been restricted to small to medium-sized hedge funds and that, in the main, the larger ones were operating just fine.
Hedge fund strategies down in July
Pensions & Investments - Chicago, IL, USA
Most hedge fund strategies posted negative returns in July, according to the EDHEC Alternative Index.
Regulatory paranoia means hedge fund claustrophobia
HedgeWeek - London, UK
Wasn't it Elvis Presley who sang, "We can't go on together with suspicious minds?" Perhaps management at the US Securities and Exchange Commission (SEC) would do well to listen to these lyrics again. Because in this new era of financial turbulence, it seems that regulators are taking on a tyrannical approach to policing financial companies, especially hedge funds
Hedge Funds Help Fill Gap
Wall Street Journal - USA
Three months ago, Eric Gray saw an opportunity to scoop up a vacant retail property in New York City's borough of Brooklyn. But he had a problem, one that has been plaguing many real-estate investors and owners: The nation's banks, burned by years of easy credit and the resulting devastating losses, are no longer eager to lend. So Mr. Gray turned to an unlikely source for money - a hedge fund.
Hedge investors on cautious tack in choppy markets
Reuters - USA
Funds of hedge fund portfolios are battening down the hatches in the current volatile markets by building up cash or steering clear of strategies with too much exposure to market movements.
Majority of Hedge Fund Firms Require Increased Focus on Succession Planning Issues
Earthtimes (press release) - London, UK
New Survey from CPA Firm Rothstein Kass Finds Hedge Fund Senior Partners Must Assess How Sudden Changes Impact Ownership.
Dipping your toe into the hedge fund pond
Stamford Advocate - Stamford, CT, USA
Financial institutions are opening doors that were previously closed to all but the ultra-rich. Now, you can dip your toe into the hedge fund pond, through mutual funds that follow hedge-fund-like strategies.
Getting sick on the hedge fund ship
National Post - Toronto, Ontario, Canada
Hedge funds are hurting. The easy-going days of the bull market are over, capital has dried up and even the S&P 500 index is outperforming most hedge funds. As a result, some managers have had to sell assets at fire-sale prices to meet margin calls and others have been forced to shut down. But is the traditional hedge fund model broken? Apparently not according to:
Why Hedge Fund Fees Make Sense
Conde Nast Portfolio - New York, NY, USA
Remember those evil hedge funds. It turns out that, overall, they did a really good job of avoiding the fallout from the credit crunch. The big reason for this, says Columbia University's Charles Calomiris, is the hedge fund fee structure.
Horlick's Bramdean Pulls Money From Scholes, Dinan Hedge Funds
Bloomberg - USA
Nicola Horlick's money-management firm, Bramdean Alternatives Ltd., pulled money out of hedge funds run by Nobel prize-winner Myron Scholes and James Dinan to focus on more defensive funds as volatility increases.
Loeb, Under SEC Probe, Defends 'Give-and-Take' With Other Funds
Bloomberg - USA
Daniel Loeb, whose Third Point LLC is being investigated by regulators, said his "give-and-take" with other hedge-fund managers doesn't violate securities laws. The U.S. Securities and Exchange Commission is probing New York-based Third Point, which manages $5.6 billion, for its communications with other hedge funds, Loeb said in a July 25 letter to clients. The investigation follows an SEC audit last year during which examiners noted the firm "regularly communicated with hedge funds about investment and trading ideas," according to the letter.
Joe Biden's Son, Brother Involved In Hedge-Fund Scandal
The Business Sheet - New York, NY, USA
What happens when a vice-presidential candidate is named during the last week of August? Toothless scandals like the following become major news stories. The blogosphere has been sort-of-abuzz this morning with reports that Joe Biden's son and brother are involved in two related hedge fund lawsuits.
Eurasia Capital Hedge Fund to Increase Mongolia Fund, Plans IPO
Bloomberg - USA
Eurasia Capital Management plans to increase the world's first Mongolia-focused fund fivefold to $100 million to tap economic growth fueled by the nation's mining industry.
Ore Hill Hedge Fund Halts Redemptions
HedgeCo.net - West Palm Beach, FL, USA
New York-based Ore Hill has suspended investor redemptions after hefty withdraws set off an 'automatic gate.' The $1.2 billion Ore Hill International Portfolio, which is partially owned by hedge fund giant Man Group Plc, was frozen after investors sought to redeem about $300 million.
Russell Led Hedge Investors to Losses
Wall Street Journal - USA
Russell Investments, known for its Russell 2000 index of small stocks, has earned a reputation for financial savvy and smart money management. Then it went into the hedge-fund business.
Deutsche Bank Seeks $107 Million From SageCrest Fund
Bloomberg - USA
Deutsche Bank AG, Germany's biggest bank, has been trying to collect $107 million loaned to bankrupt units of the SageCrest LLC hedge fund, according to court documents.
Insana Capital Partners"Legends' Hedge Fund To Close
Seeking Alpha - New York, NY, USA
CNBC's Ron Insana is folding the tent on his Insana Capital Partners L.P. hedge fund called "Legends." On August 8, 2008 sent a letter to his investors to announce they were closing shop and taking a job with Steven Cohen of SAC Capital.
Oil May Fall to $80 a Barrel, Hedge-Fund Manager Haugerud Says
Bloomberg - USA
Crude oil may tumble to $80 a barrel within 12 months as supplies of alternative energy increase, while grain prices may climb on emerging-market demand, said Renee Haugerud, whose hedge fund gained 18 percent this year.
Main RAB fund eyes buy-back
Financial Times - London, England, UK
RAB Special Situations, the Aim-listed hedge fund run by RAB Capital, is considering buying back its own shares after lack of investor interest in the loss-making fund saw them fall to a hefty discount to the asset value.
"Vagilante" Hedge Fund Not Performing so Vigorously
Radar Online - New York, NY, USA
Harbinger Capital, you might recall, is the hedge fund that employs "Snatch-Buckling Muffkateer" Scott Galloway and which recently acquired a stake in the New York Times. Except things aren't as swashbuckling as they once were. The Financial Times reports that the firm's heavy loses on energy trades have forced it to give back almost two-thirds of the profit it made this year in just the past six weeks.
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AME Info - United Arab Emirates
Kuwait-basd Global Investment House has launched The Mayur Hedge Fund, a long short absolute return growth oriented fund with a net long bias.
FINalternatives - New York, NY, USA
Kuwait-based asset manager Global Investment House has recently launched an India-focused hedge fund. According to the firm, the Mayur Hedge Fund is long/short absolute return growth-oriented fund with a net long bias. The fund, which is the firm’s first India-focused product, is targeting a 15-20% return.
HedgeCo.net - West Palm Beach, FL, USA
Fortress Investment Group, who oversees more than $18 billion in assets, is starting a new hedge fund that will invest in markets throughout the Middle East and North Africa. The new fund, Fortress MENA, is set to launch near the end of September and seeks returns of 20 percent annually, according to insider documents obtained by Bloomberg.
FINalternatives - New York, NY, USA
Chicago-based alternative asset manager Citadel Investment Group is aiming to raise a whopping $1 billion for a global macro hedge fund.
FINalternatives - New York, NY, USA
A former managing director of Citigroup Venture Capital International in India has reportedly snagged U.S.-based hedge fund Morgan Creek Capital as an anchor investor in his soon-to-be floated private equity fund.
Asian Investor (subscription) - Hong Kong
The new fund from Hong Kong manager DragonBack Capital will take a much broader approach to volatility trading and offer greater flexibility across equity-based products and indices.
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Hedge Fund News
FiNTAG
Barron's - USA
Though share of NICOR are flirting with new highs, one hedge fund believes the stock could inflate even higher.
FINalternatives - New York, NY, USA
Mining company Cleveland-Cliffs Inc. is urging investors not to give an activist hedge fund effective veto power over a proposed acquisition that the hedge fund opposes.
Newsday - Long Island, NY, USA
A hedge fund that recently became the fourth-largest outside investor in Cablevision Systems Corp. said Friday it wants to meet with the company.
The Plain Dealer - cleveland.com - Cleveland, OH, USA
Cleveland-Cliffs shareholders will vote Oct. 3 on a New York-based hedge fund's request to increase its ownership stake in the iron ore company. The decision could determine the fate of an $8.8 billion merger deal.
Markets Media (press release) - New York, NY, USA
Hedge fund firm Elliott Associates has taken a 9.9 percent stake in Epicor Software Corp. and is inquiring about possible strategic alternatives for the company.
FINalternatives - New York, NY, USA
Steel Partners fired five shots at body armor maker Point Blank Solutions, and its aim was true.
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Hedge fund manager settles fraud suit
San Francisco Chronicle - CA, USA
A prominent hedge fund manager agreed to a $100,000 penalty and a five-year ban on acting as an investment adviser to settle a Securities and Exchange Commission lawsuit that accused him of misleading clients who invested $20 million in real estate, the SEC said Wednesday. Mark Boucher of Portola Valley, author of the book "The Hedge Fund Edge," was one of three defendants in the civil suit filed in San Francisco federal court.
Dem. Veep Pick’s Son, Brother Face Hedge Fund Fight
FINalternatives - New York, NY, USA
Sen. Joseph Biden (D-Del.), whose son and brother have been accused of defrauding partners in a hedge fund venture, has been tapped as the Democrats’ vice-presidential candidate.
Another Hedge Fund Fights Delphi Over GM Loan
FINalternatives - New York, NY, USA
Delphi Corp. has a second hedge fund thorn in its side. The bankrupt auto-parts maker, which is suing a group led by Appaloosa Management over a failed investment deal, finds that Appaloosa is not the only hedge fund that objects to it borrowing more from former parent General Motors Corp.
Fund manager ordered to repay nearly $300 million
Vancouver Sun - British Columbia, Canada
The bizarre career of renegade hedge fund manager Paul Eustace appeared to be near the end of its trajectory on Tuesday as a U.S. court ordered him to pay $291 million in restitution and penalties after the U.S. Commodity Futures Trading Commission accused him of defrauding clients.
Judge clears local hedge-fund manager of insider trading
Bizjournals.com - Charlotte, NC, USA
A federal judge has dismissed the Securities and Exchange Commission’s insider-trading case against a former Charlotte hedge-fund manager. The case against John Mangan Jr. focused on a trade made in 2001 when Mangan worked for the Charlotte office of Friedman, Billings, Ramsey.
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Edited By Morton Lane