Hedge fund reinsurer Resource Re’s parent invests in Courant Capital (Artemis)
Till Capital Ltd., the parent company of hedge fund style reinsurance firm Resource Re, has increased its investment capabilities and options by purchasing 10% of alternative asset manager Courant Capital Management LLC. Till Capital, which we wrote most recently about here when it listed its shares on the TSX Venture Exchange, is the new name for the holding company to emerge from Americas Bullion Royalty Corp’s acquisition of Resource Holdings Ltd. That gave Till Capital ownership of Resource Re Ltd. which was the first hedge fund style reinsurance firm to join the Multi-Strat Re Ltd. platform in September 2013.
Hedge-Fund Middlemen are Getting Cheaper (WSJ)
It’s getting cheaper to get into hedge funds, by one avenue at least. Fund of funds, the middlemen who spread money across a variety of independent hedge funds, have dropped their fees to historic lows, according to a report from researcher Eurekahedge. The average annual management fee for FoFs starting up this year is 1.02%, down about one-quarter from 2009’s peak, the firm says. It adds that FoFs also take an annual performance fee amounting to 7% of any gains, compared with more than 10% in the pre-crisis years.
Brevan Shuts CMBS Fund Early (Finalternatives)
When Brevan Howard Asset Management launched a hedge fund designed to profit from the U.S. recovery, it gave itself two-and-a-half years to do it. As it happens, the firm didn’t even need that much time. Brevan Howard plans to liquidate the US$385 million after just two years. The Brevan Howard CMBS Fund, which debuted in 2012, has earned more than 20% investing in commercial mortgage-backed securities. The larger tranche made 21.57%, and the smaller 20%, the Financial Times reports. Taking the staggered returns of capital into account, the returns were an even more impressive 44.3% and 35.5%.
Arden wins Massachusetts pension fund’s hedge fund mandate (Reuters)
Arden Asset Management will help Massachusetts’ state pension fund invest in hedge funds by selecting managers, monitoring their performance and providing due diligence, two sources familiar with the matter said on Tuesday. New York-based Arden has won the $5.2 billion mandate to provide hedge fund advisory services for the $58 billion pension fund, which already invests with prominent funds like William Ackman’s Pershing Square Capital Management, Dan Och’s Och-Ziff Capital Management.
Jim Simons’ 5 Largest New Buys Topped By Apple (GuruFocus)
Jim Simons (Trades, Portfolio) founded Renaissance Technologies, a hedge fund with about $15 in asset under management that executes many of its trades using mathematical and computer-based models that are often automated. It has a massive long portfolio containing 2,794 stocks, with a value of $41.7 billion. In the first quarter, the firm added 484 new stocks. Topping the list was a significant new stake in Apple Inc. (NASDAQ:AAPL), followed by Comcast Corporation (NASDAQ:CMCSA), Vodafone Group Plc (ADR) (NASDAQ:VOD), Tesla Motors Inc (NASDAQ:TSLA) and eBay Inc (NASDAQ:EBAY).
Macro Play Goes Awry but Traders Keep the Faith (InstitutionalInvestorsAlpha)
One of the most profitable trades for more than a year sharply reversed in 2014, creating havoc for many macro hedge funds as well as more eclectic investors who gravitate to a wider variety of strategies. The trade involves going long Japanese stocks and simultaneously shorting Japanese yen in response to Tokyo’s aggressive push to inject liquidity into the economy and boost growth. Last year the Topix index, which measures the performance of the Tokyo Stock Exchange, surged 49 percent while the Nikkei 225 jumped 57 percent. At the same time, the dollar rose 21 percent versus the yen, the biggest gain against the Japanese currency since 1979.
Ex-Sasco CIO To Freepoint (Finalternatives)
The former chief investment officer at hedge fund Sasco Energy Partners and his team have landed at Freepoint Commodities. Joe Howley was named senior managing director at Freepoint. His traders, Brian Lisoski and Garth Camp, were appointed vice presidents of trading, Reuters reports. “There are very significant hires and signals our commitment to growth and willingness to expand our senior leadership on the natural gas trading side of our business,” Freepoint President Frank Gallipoli said.
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