Fortress to Cut Stake in German Landlord Gagfah (Bloomberg)
Fortress Investment Group LLC (NYSE:FIG) plans to cut its stake in Gagfah SA (GFJ), the second-largest owner of German homes, to less than 50 percent as part of a transaction through which Gagfah will also sell shares. Fortress Investment Group LLC (NYSE:FIG), a private-equity and hedge-fund manager, will seek to sell 20 million of its shares in Gagfah, according to a statement after the market closed yesterday. Gagfah will sell 10.5 million treasury shares and 9.5 million new shares. Fortress Investment Group LLC (NYSE:FIG), based in New York, currently owns about 61 percent of Gagfah, according to the statement. The shares are being sold for 8.85 euros each, according to a term sheet outlining the transaction.
Singapore OUE Hospitality REIT to raise $480 mln in IPO (Reuters)
Singapore-listed Overseas Union Enterprise will raise about $480 million by listing a hospitality real estate investment in Singapore, according to a prospectus for the deal. OUE Hospitality Trust will sell about 682 million units at an offer price of between S$0.88 and S$0.90 a unit to investors. The company’s parent OUE will buy the remaining 626.8 million units, or about half the listed entity. Cornerstone investors that include Credit Suisse Group AG (NYSE:CS) and hedge fund manager Splendid Asia Macro Fund have agreed to buy 247.22 million units, according to the prospectus.
Tiger Cubs By the Numbers: How Lone Pine, Viking and Others Are Doing This Year (InstitutionalInvestorsAlpha)
Once again the so-called Tiger Cubs are dispelling the notion that they invest in lockstep. A sampling of some of the more high-profile members of this group, so named because they all worked for Julian Robertson’s Tiger Management, reveals a mixed bag of results for the first half of the year. Several of these managers posted gains in the low to high teens, while others generated gains in the mid-single digits. The top performer of the Tiger Cubs seems to be Robert Citrone’s Discovery Opportunity funds, managed out of Norwalk, Connecticut–based Discovery Capital Management. These funds have gained just under 17 percent for the first half of this year.
Wall Street: No Firm Is Above the Law (InstitutionalInvestor)
When Steve Cohen and his investment company SAC Capital Advisors agreed to pay a record $616 million in March to settle insider trading charges by the Securities and Exchange Commission, the billionaire hedge fund manager may have thought the case and a pocketful of troubles were over. Within days of the settlement, he celebrated by plunking down $60 million for a new oceanfront home in East Hampton, Long Island; that same week news came out that Cohen had paid $150 million last fall to buy Picasso masterpiece Le Reve from casino magnate Steve Wynn. But Cohen’s troubles are far from finished. In fact, they may be just beginning…
U.S. regulators place GE Capital, AIG under additional supervision (WashingtonPost)
The Financial Stability Oversight Council voted Tuesday to place GE Capital and American International Group, Inc. (NYSE:AIG) under stricter supervision, the first substantial move to address the risks that large nonbank companies pose to the financial system. …Tuesday’s vote puts to rest a lengthy, multi-stage review process for GE Capital and American International Group, Inc. (NYSE:AIG). The companies were notified in June of the council’s intentions and given a 30-day window to object to the designation. Unlike Prudential Financial Inc (NYSE:PRU), which was also named by the council, GE Capital and American International Group, Inc. (NYSE:AIG) decided not to fight the designation.
PMQs: Cameron and Miliband on hedge fund and party donations (BBC)
Party funding dominated PMQs where the Labour leader asked the prime minister if a £145m cut in the last budget for Tory-supporting hedge funds was “just a coincidence”, But David Cameron said there was a “big difference” between donations to the his party, as donations to Labour bought places at its conference, candidates in the House of Commons, and got the opposition leader his job. But Mr Miliband said “6p a week in affiliation fees from ordinary people” could not be compared to a party funded by “a few millionaires at the top”.
AA-rated Ian Heslop to run OMGI’s first Cayman hedge fund (CityWire)
Old Mutual Global Investors has launched its first ever Cayman-domiciled hedge fund to be managed by Ian Heslop and team. The Old Mutual Arbea fund mirrors the investment process behind the group’s existing Global Equity Absolute Return fund, a Ucits vehicle, but is being run with higher gearing. The Arbea fund, which is a global equity market neutral fund, is targeting an annualised return of cash plus 9% with 9% volatility and to achieve can use gross leverage of between 300% and 400%. This compares to the Global Equity Absolute Return fund’s target of cash plus 6% with 6% annualised volatility and gross exposure of 200%.
