Editor’s Note: Related tickers: Dell Inc. (NASDAQ:DELL), INTL Fcstone Inc (NASDAQ:INTL), J.C. Penney Company, Inc. (NYSE:JCP), Deutsche Bank AG (USA) (NYSE:DB)
Carl Icahn‘s complaint seeks to prevent the company from setting a new record date for a special meeting at which shareholders will vote on an offer that Dell Inc. (NASDAQ:DELL) recently raised. Dell Inc. (NASDAQ:DELL) and the Round Rock, Texas, company agreed months ago on a deal in which Michael Dell will buy the company for $US24.4 billion ($A27.46 billion), or $US13.65 per share. Icahn and other big Dell Inc. (NASDAQ:DELL) investors have said that offer undervalues the company. Dell Inc. (NASDAQ:DELL) has since raised that offer to $US13.75 per share, and a board committee has proposed changing the record date for a special meeting on it.
Greenlight Capital Bounces Back in July (InstitutionalInvestorsAlpha)
It is turning out to be a good year so far for David Einhorn’s Greenlight Capital, though it might have been even better if Einhorn had kept betting against J.C. Penney Company, Inc. (NYSE:JCP), which he calls his “most profitable short of 2012.” He still doesn’t believe the embattled retailer is going to succeed, but he played it safe and covered his short positions in April, around the same time the board ousted CEO Ron Johnson, only to see the stock drop further this week.
Man Group shares jump after outflows, fees beat forecasts (Reuters)
Hedge fund manager Man Group Plc (EMG.L) said clients continued to pull money out of its funds but at a slower rate than some analysts had forecast, helping lift its shares from recent lows. The former member of the blue-chip FTSE 100 index .FTSE, whose shares are down nearly 70 percent since the start of 2011 on the back of poor fund performance and client outflows, also said its performance fees were boosted by a strong first half from its GLG unit. Man said clients withdrew $1.3 billion during the second quarter, making it Man’s eighth consecutive quarter of outflows, but beating forecasts from analysts at RBC Capital Markets of $2.1 billion. The outcome was also less than the $3.7 billion withdrawn in the first quarter.
The Fall of a Predator (CounterPunch)
On July 25th SAC Capital, a hedge fund founded and run by Steven A. Cohen, was indicted for insider trading. Up until now, Cohen has managed to avoid being hauled off perp-style with his jacket over his head. Even after a number of his underlings began serving time, Cohen continued to enjoy the benefits of what is obviously a criminal enterprise. With all proportions guarded, his status reminds me of how holocaust deniers can make the case for Hitler even to this day. Where is there a document with Der Fuhrer ordering the gassing of Jews?
INTL FCStone Announces Hedge Fund Capital Raising Team (MarketWatch)
INTL Fcstone Inc (NASDAQ:INTL) +2.65% today announced the appointment of George Lucaci as head of their wholly owned subsidiary, INTL FCStone Securities Inc.’s new hedge fund capital-raising group. Joined by Eric Blessing, Edward Kuhnel, and George Gowdy, this new group will work in consultation with hedge fund managers to review their strategy, focus their brand, and optimize their structure to meet the demands of sophisticated institutional investors. Their experience has allowed them to assess each fund’s position in the prevailing marketplace and provide insight as to the allocation process from an institutional investor’s perspective.
Caxton reopens hedge fund to new investors (FT)
Caxton Associates, a hedge fund manager with $7bn under management, has reopened its main fund to new investors in the belief that global markets are rife with investment opportunities. The firm is the first of the big “global macro” funds – which speculate on shifts between national economies via currencies, bonds or derivatives – to begin accepting new capital in several years. “Our enthusiasm stems from an identifiable change in the market environment in recent months,” Caxton said in a letter sent to clients earlier this year notifying them about the fund’s reopening.
Hedgebay continues to develop secondary market for hedge funds (HedgeWeek)
Hedgebay has published the results of a survey conducted amongst its high profile hedge fund, institutional and banking clients designed to pinpoint potential improvements that could be made in secondary market trading. More than 150 firms from across Hedgebay’s user base took part in the survey, including hedge funds, funds of funds, pension funds, insurance companies, family offices and banks. Questions were asked to determine how far the secondary market for hedge funds has come, and whether any improvements need to be made.
Ex-Soros Adviser Fujimaki Sees JGB Bust From Tax Delay, Fed (Bloomberg)
Takeshi Fujimaki, a former adviser to billionaire investor George Soros who won a seat in Japan’s upper house of parliament last month, said a delay in increasing the sales tax and reduction of Federal Reserve stimulus could cause the nation’s government bond “bubble” to burst. Prime Minister Shinzo Abe’s administration plans to release later this year its medium-term fiscal plans and a final decision on a two-step doubling of the consumption levy to 10 percent in 2015. Fed Chairman Ben S. Bernanke said in June the U.S. central bank may start scaling down its third round of quantitative easing of asset purchases this year and end it altogether in mid-2014.
Jim Rogers’ Quantum mechanics (Business-Standard)
Making money in any kind of financial market, whether it deals in commodities, stocks, bonds or currency, is a task that demands all-round awareness – of politics, finance, corporate performance, economies and so on. It also requires the ability to predict trends and speculate about the future of a particular asset class. It is a risky business, to be sure, and one that calls for caution. No one understands this better than the legendary trader Jim Rogers.
Deustche Bank-Backed Roc Liquidating Hedge Fund (Finalternatives)
Despite an impressive pedigree and some powerful backers, Roc Capital Management is closing its doors in the face of falling assets and poor performance. The New York-based hedge fund has begun to liquidate its remaining portfolio, Bloomberg News reports. Roc plans to return all capital to clients within a few weeks. Roc managed just $642 million at the beginning of March, down from $1.2 billion when it launched in 2009. The quantitative hedge fund was among the largest new hedge funds of that year, and was backed by Deutsche Bank AG (USA) (NYSE:DB), where founder Arvind Raghunathan and most of its staff formerly worked at its Equitech Group. The bank owned at least a 5% stake in Roc and put up $500 million of its initial capital.
How Fast Could You Get Out of Your Hedge Fund? (ai-CIO)
Investors may have to wait more than a year to redeem anything more than three quarters of their net assets from the largest US hedge funds, the Securities and Exchange Commission (SEC) has revealed. Hedge funds with more than $5 billion in assets are compelled to report their liquidity and leverage profiles to the SEC under the recent Dodd Frank Act. Figures shown to the US Congress last week indicated just 7% of assets held in these funds could be liquidated in one day or less; with fractionally more—9%—available to be sold and returned in one week or less.
