Activist investor Carl Icahn agreed to allocate as much as $3 billion to a management duo composed of his son, Brett, and David Schechter, expanding their role in running the 76-year-old’s investments. Under a legal agreement filed with federal regulators last month, Brett Icahn and Mr. Schechter will get to invest the capital in companies with stock market values between $750 million and $10 billion.
India gets first domestic hedge fund in Forefront (MyDigitalFc)
India has just got its first hedge fund, with the Mumbai-based Forefront Alternative Investment Trust registering itself with the Securities and Exchange Board of India (Sebi) under the new alternative investment funds rules, which were notified in May. The list of new AIFs put up by Sebi over the weekend placed Forefront Alternative Investment Trust in Category-III, a segment reserved for hedge funds.
The hedge-fund heroes of Hartford (Rep-AM)
Gov. Dannel P. Malloy’s latest giveaway to corporate America sparked a good amount of outrage among voters fed up with crony capitalism. Bridgewater Associates, the world’s largest hedge fund, announced it will move its operations from Westport to Gov. Malloy’s hometown of Stamford and nearly double its workforce to 2,000. In exchange, it will get $115 million from the state, primarily in the form of tax credits, aka tax loopholes. Bridgewater’s decision, he said, “signals to the rest of the world that Connecticut is strengthening its leadership position in the very competitive financial-services sector.”
Hedge funds feasted on JPMorgan’s stock (GulfNews)
JPMorgan Chase’s “London whale” problem attracted some hedge-fund sharks in the second quarter. New regulatory filings show that several big hedge-fund players loaded up on JPMorgan even as heavy losses on a soured credit derivative bet made by a trader known as the “London whale” sent the bank’s stock reeling. It seems as though managers such as Jim Chanos, John Paulson, and Jamie Dinan saw the stock’s 22 per cent drop in the second quarter as a buying opportunity.
Insider trading or legitimate research? (NDTV)
The definition of insider trading has gotten a workout at the Manhattan federal trial of a San Francisco hedge fund founder after he testified that information he elicits from public company executives about earnings or future prospects is legal as long as he is not told exact numbers. Doug Whitman’s testimony over several days last week even raised questions from US District Judge Jed Rakoff when Whitman described where he drew the line between illegal inside information and legitimate research at the West Coast hedge fund firm he founded in 1994.
HFRX Global Hedge Fund Index posts gain of +0.50% through mid-August (2.28% YTD) (Opalesque)
Global financial market volatility moderated through mid-August, as global equities built on July gains which extended into mid-August. Listed equity trading volumes were light following an incident earlier in the month that resulted in a sharp daily increase and significant trading losses for at a specialist market maker firm. US equities posted gains with leadership from Energy & Telecom, while global equities posted gains led by Italy, Spain and France as investors discounted optimism toward current developments regarding the European sovereign debt crisis. US yields rose as the curve steeped, with longer dated maturities coming off historical lows set in July. The US dollar was mixed falling against the Euro while posting gains against the Japanese Yen. Commodities were also mixed as Metals, Natural Gas and Agriculturals (Corn, Wheat and Soybean) posted declines, while Oil increased.
J.C. Penney revival? Hedge fund’s doubtful (JournalGazette)
Marathon Asset Management, a $10 billion global credit hedge fund, shorted debt of J.C. Penney, betting against a turnaround plan backed by activist investor Bill Ackman. Marathon started wagering against the company through its 5-year credit default swaps early in the year, the New York firm said in a letter obtained by Bloomberg News dated Aug. 8. Marathon closed most of the position in early July at levels near 700 basis points, about double the level at which the hedge fund bought them, the letter said.
Strategic partnership is New Jersey Division of Investment’s newest move (PIOnline)
In two years, Timothy M. Walsh has taken the New Jersey Division of Investment to the third phase of its hedge fund investment evolution: a true strategic partnership with one of its first hedge fund managers. Only a few institutional investors have similar, collaborative relationships with hedge fund managers. New Jersey goes one step further, allowing a look earlier this month into the nature of the relationship and the attractive terms struck with Och-Ziff Capital Management Group LLC.
Silvercorp’s legal attack on hedge fund dismissed (Reuters)
A New York state judge threw out a lawsuit filed by Vancouver-based Silvercorp Metals Inc against investors who raised questions of potential accounting fraud and misstatements of assets. New York state Supreme Court Justice Carol Edmead dismissed a defamation complaint brought by Silvercorp, a China-focused mining company, against New York-based hedge fund Anthion Management, court documents showed on Friday.
There’s no hedging on these A-listers (NYPost)
Move over George Clooney, here comes Bill Ackman. Like Hollywood, the world of hedge funds has an A-list. Influential adviser Cliffwater LLC — which monitors some 1,500 hedge funds and ranks them with an A, B or C grade — keeps a closely guarded list of 90 or so top-rated funds. Winning a spot on the list is akin to a golden ticket in the highly competitive hedge-fund world because it means access to “sticky” money investors, such as pension funds, according to sources familiar with Cliffwater.
Brevan Howard Co-Founder Rokos Is Said to Leave Hedge Fund (SFGate)
Christopher Rokos is leaving Brevan Howard Asset Management LLP, according to five people familiar with the matter, the third of five co-founders to quit the $36.7 billion hedge fund in the past three years. Rokos, 41, declined to comment when contacted on his mobile phone. Rokos won’t be managing money at Brevan Howard as of the end of this month, said one of the people, who asked not to be named because his departure hasn’t been made public.
Mosaic: the latest way to keep trading tap flowing (eFinancialNews)
As if to prove financial innovation is alive and well, a trade has emerged over the past 12 months that will help investors extract some cash from otherwise illiquid hedge fund holdings, with the potential for their counterparties to make large profits. Investors have been trying to deal with the problem of illiquid hedge fund stakes since the collapse of Lehman Brothers four years ago. Many hedge fund managers discovered in late 2008 that they could not meet their investors’ redemption requests because they could no longer sell all of the assets in their portfolios.
Billionaires load up on gold (StockHouse)
Billionaire investors George Soros and John Paulson dramatically increased their gold stakes this month, as market analysts fear economic dangers lay ahead. Paulson purchased 4.53 million shares of SPDR Gold Trust for his $21 billion hedge fund Paulson & Co. That leaves a whopping 44 percent of Paulson’s U.S. traded equities tied to bullion. On the same day, the Soros Fund Management revealed it more than doubled its shares of gold.
Goldman, Still Playing in Bayou’s Mud (NYTimes)
THE story of the Bayou Group, the hedge fund firm that collapsed in a whirl of lies and drugs, was always a little weird. But it just keeps getting weirder. You may recall Bayou — or at least its founder-turned-con man, Samuel Israel III. To the world, Mr. Israel was a trading whiz. Then, one August afternoon in 2005, the police responded to a 911 call from Bayou’s offices in Stamford, Conn., and found a note explaining how he had perpetrated a giant fraud.
JOBS Act: SEC delays rules on hedge fund soliciting (Opalesque)
Citing the need for more public comments, the U.S. Securities and Exchange Commission’s Chairman Mary Schapiro last week told Congress she would need more time before finalizing rules on repealing a ban on investments advertising. Her statement quickly drew loud protest from Republicans in Congress who supported the Jumpstart Our Business Startups Act, or JOBS Act, the Wall Street Journal reported on Friday. The JOBS Act was signed into law by President Barack Obama on April 5, 2012, and contains the lifting of the advertising ban for small businesses among other things.
Rosemont parent firm gets more cash (Azstarnet)
The parent company of Rosemont Copper has averted a cash crunch by obtaining an expanded loan from a familiar backer, a British metals-trading hedge fund. RK Mine Finance Trust, more commonly known as Red Kite, agreed to add $40 million to an existing $43 million loan to Vancouver-based Augusta Resource Corp., which owns the site of the proposed Rosemont Mine southeast of Tucson. Augusta announced the expanded loan last week.
Hardly News: Democrat Corzine, Others at MF Global on Track to Avoid Criminal Charges (NewsBusters)
About a month ago, I joked in a column published elsewhere that the reason a certain New York Times column didn’t resonate with anyone is because no one pays attention to the Old Gray Lady any more. Unfortunately, that’s not true. But the fact that almost no other establishment press outlet has mentioned the paper’s disclosure late Wednesday (appearing in Thursday’s print edition) that former MF Global CEO Jon Corzine and others at the bankrupt firm likely won’t face criminal prosecution in the firm’s crack-up, which featured raiding individual customers’ accounts to the tune of $1.6 billion, seems to indicate that the Times has become a favored holding cell for stories detrimental to Democrats which will otherwise be ignored. Oh, and contrary to the belief expressed in a very long Vanity Fair item in February, when Corzine was seen to be in “a scandal he can’t survive,” and that “his career is likely finished,” the man is seriously considering starting up a new hedge fund.
Bishop’s bar mitzvah bang (NYPost)
Hedge-fund investor Eric Semler needed a government permit to put on a fireworks show celebrating his son’s Jewish rite, so he asked the Long Island Democrat for help. As Politico reported last week, Bishop interceded with five city, state and federal agencies — but, before the favor was done, asked for a hefty contribution from Semler. What Bishop provided is known in Washington as “constituent services.” What he reportedly asked for in return is known everywhere as a bribe. More appalling still, the solicitation came via e-mail from Bishop’s daughter Molly, who doubles as his campaign fund-raiser.
Family Resource Centre Focus on fatherhood (CompassCayman)
Six sessions with a focus on fatherhood is planned at the Family Resource Centre. Fathers First is also supported by Hedge Fund Cares. The sessions will focus on areas such as responsible fatherhood, dealing with children’s behaviours, managing conflict and handling anger, the art of communication, coping as a single father and building a support network. Miriam Foster, programme coordinator noted that, “The meetings will be down-to-earth and practical as we help these men fulfil their roles as effective parents, partners and workers.”
Paul Ryan’s views on Wall Street may surprise you (IrishTimes)
HE COULD be mistaken for a Wall Street banker. Or perhaps a hedge fund manager. Paul Ryan, with his clean-cut looks seemingly from Brooks Brothers and his wonky obsession with spreadsheets, could be the archetype of a Wall Streeter. Mitt Romney’s running mate even trades stocks in his spare time. He’s a fan of the nation’s blue-chips: among the stocks he owns are Apple, Exxon Mobil, General Electric, IBM, Procter Gamble, Wells Fargo, Google, McDonald’s, Nike and Berkshire Hathaway.
HFT Tail Wagging The Silver Price Dog (SeekingAlpha)
The use of High Frequency Trading (HFT) computer systems to execute large deals rapidly in electronic markets typically allows their users to take advantage of short-lived pricing disparities in large size. Furthermore, the growth of HFT in the silver derivatives market is exerting an ever-increasing influence on the price of physical silver. Unfortunately, the hedge fund crowd is now often mindless, relying on computers to do their thinking for them.
BlackRock wants outcome and style to define absolute return sectors (FundWeb)
BlackRock is calling for absolute return sector definitions to take account of both the outcome and style of funds in the sector. In June, the IMA outlined three options for the Absolute Return sector as part of its consultation. The first option is to sub-divide the existing Absolute Return sector, indicating which funds are targeting more stable outcomes based on cash benchmarks. Other funds would remain within the existing umbrella sector.
China Power International raises $300 million from placement, CB (FinanceAsia)
The Chinese power producer draws strong demand from outright and hedge fund investors, and both tranches are upsized in full. China Power International Development (CPI) has raised Rmb1.14 billion ($180 million) from the sale of a five-year US dollar-settled convertible bond, and raised HK$930.8 million ($120 million) from a concurrent top-up equity placement.
Sotheby’s chief shot in accident (HeraldScotland)
THE chairman of one of the world’s most famous auction houses is recovering with family after being shot in the face during a Scottish grouse shoot. Henry Wyndham, 58, chairman and auctioneer at Sotheby’s, reportedly sustained serious injuries when he was blasted in the face with 52 lead pellets while at the shooting station on a Scottish moor. The auctioneer was attending a shoot on a private estate organised by American hedge-fund manager Louis Bacon, 56, when a nearby gun went off, according to claims.
REO CAPITAL, LLC – A CAPITAL RAISING FIRM FOR EMERGING (Melodika)
Since 1998, we have successfully raised capital for alternative asset managers as well as various types of Private Equity firms. Our Track Record on Capital Raises have included Private Equity – Levered Buy Out funds, Private Equity Clean Technology funds, Private Equity Real Estate funds, Private Equity Technology funds, and a Global Macro Long Short Hedge fund. We are experienced professionals with institutional clients in New York City, San Francisco, Chicago, Boston, Los Angeles, Washington DC, and other major cities throughout the United States as well as International clients in China, London, Europe, Canada & UAE. Over the past 4 years we have raised over $1.2 Billion in capital for various types Private Equity Funds, Long Only Funds, and Hedge Funds.
HSBC and Four Capital Partners launch India fixed income and defensive equity UCITS funds… (HedgeWeek)
InfraHedge, a managed account infrastructure platform and a subsidiary of State Street, has been selected by Milltrust International Group to launch its Emerging Markets Managed Accounts (EMMA plc) platform Hedgeweek reported this week. The platform, a Dublin-domiciled UCITS umbrella structure, will select best-of-breed managers in high-growth emerging markets according to Milltrust International, and has launched with three sub funds; these include Bank Itau, BTG Pactual and Value Partners. Akshaya Bhargava, chief executive of InfraHedge said: “The flexibility of our platform infrastructure and our ability to work with multiple fund managers dealing in multiple markets made InfraHedge an ideal fit. We are delighted to have been chosen to help Milltrust create a truly innovative investment platform for their clients.”
QFS names Jim Xiong as co-chief investment officer (HedgeWeek)
Jim Xiong has rejoined QFS Asset Management as co-chief investment officer. Xiong and Jim Conklin, QFS’s other co-CIO and director of research, will collaborate with the firm’s founder, Sanford Grossman, in pursuing new research and managing the existing investment programs. Xiong will also join the QFS Investment Committee.
Harold Heuschmidt, Aquila Capital: “Absolute return Ucits funds offer enhanced transparency, liquidity and oversight – all increasingly important criteria for investors” (HedgeWeek)
Aquila Capital’s Harold Heuschmidt (pictured) says the Risk Parity funds of which he is head manager use a multi-asset investment strategy that allocates risk across different asset classes offering a risk premium, namely equities, bonds, commodities and interest rates, with the contribution of each asset class risk-weighted to balance risk proportionately across the portfolio.
A fund by any other name is not as sweet (MarketWatch)
A mutual fund that buys large-cap stocks, no matter what it’s called, is still a large-cap mutual fund. But the fund industry sometimes forgets that. Take, for example, Dreman Domestic Large Cap Over-Reaction Fund, which just filed registration paperwork.
State handouts raising questions (HartfordBusiness)
After all the high-fiving is done, after Governor Malloy takes a victory lap through Fairfield County’s financial sector, some questions must be explored about just what’s happening with the scads of public money being tossed around in the name of the expanded ‘First Five’ economic development program. The announcement of a $750 million capital project and 1,000 new jobs for Stamford by 2022 is indeed an impressive catch.
Rautenbach’s controversial mining deals (TheIndependent)
GAMBLING investments king and long-time Zanu PF ally, Billy Rautenbach is at the centre of a complex global web of quick buying and selling of shares in mining corporations. Rautenbach invests and short-sells shares, which has afforded him political protection from top-ranking Mugabe allies. Last week the Zimbabwe Independent and its sister paper, the Mail and Guardian revealed that during March 2008 elections, Lefever Finance, a Rautenbach-linked enterprise advanced Zanu PF a US$100 million loan for its campaign. This week, further searches show how Rautenbach gained platinum mining rights after Zanu PF parcelled out Anglo American’s surrendered claims to the government. Under pressure to comply with the government’s empowerment plan, in 2006 Anglo American, operating as Implats, gave up an estimated 30% of its claims to the government. Bankrupt Zanu PF then sold these for a song to its political allies and business associates.
Something Is Coming…But What? (WHTC)
In a harbinger of what may be coming our way in the Fall of 2012, billionaire financier George Soros has sold all of his equity positions in major financial stocks according to a 13-F report filed with the SEC for the quarter ending June 30, 2012. Soros, who manages funds through various accounts in the US and the Cayman Islands, has reportedly unloaded over one million shares of stock in financial companies and banks that include Citigroup (420,000 shares), JP Morgan (701,400 shares) and Goldman Sachs (120,000 shares). The total value of the stock sales amounts to nearly $50 million.
Smearing Conservatives, Raking in Cash (FrontPageMag)
After the Southern Poverty Law Center – a quarter-billion dollar leftist attack machine funded by George Soros – labeled the conservative Family Research Council a “hate group,” a gay rights activist shot up FRC headquarters in Washington, D.C. last week. FRC president Tony Perkins acknowledged “the gunman is responsible for the shooting,” but blamed the SPLC for “recklessly” labeling groups “like FRC that they disagree with as ‘hate groups,’ that created this hostile environment.”
100 Women in Hedge Funds to give Carlyle co-CEO David Rubenstein its 2012 Effecting Change Award (Opalesque)
100 Women in Hedge Funds (100WHF), a leading non-profit organization for professionals in the Alternatives industry, today announced that it has named David M. Rubenstein as the recipient of its 2012 Effecting Change Award. Mr. Rubenstein will receive the award at 100WHF’s annual New York Gala to be held at Cipriani 42nd Street on November 14, 2012. Mr. Rubenstein, Co-Founder and Co-Chief Executive Officer of The Carlyle Group, will be presented this award in recognition of his work as an active and exemplary philanthropist.
Shirakawa Dismissed By Yen Traders On Missed Price Target (Bloomberg)
Bank of Japan Governor Masaaki Shirakawa, who set the nation’s first inflation goal six months ago to halt a decade-long struggle with deflation, has failed to produce the weaker currency craved by exporters. The yen slid as much as 8.8 percent against the dollar in the weeks after the BOJ shocked markets in February by announcing a 1 percent inflation target and expanding its asset- buying fund. The relief for exporters was fleeting, as the central bank refrained from expanding stimulus since April and the currency resumed its climb toward a postwar record. Futures traders raised bullish bets to a five-month high as consumer prices continued their decline.
Facebook Investors Brace For More Shares Coming To Market (Bloomberg)
Facebook Inc. (FB) shares, which fell to a record low after insiders could sell stakes for the first time since the initial public offering, will face more pressure when another 1.44 billion shares are freed up through November. Facebook last week unlocked 271.1 million shares, the first of five insider sale restrictions scheduled during its first year as a public company.
When Wall Street Watchdogs Hunt Whistle-Blowers (Bloomberg)
You’ve probably never heard of Peter Sivere, a former compliance officer at JPMorgan Chase & Co. (JPM) Yet his distressing story shows — on a personal level — that for all the tough talk about better enforcement of financial wrongdoing, just how tightly government regulators are aligned with the big Wall Street banks they are supposed to keep an eye on.
As Dodd-Frank looms, Asian banks look to cut U.S. trading ties (Reuters)
Asian banks are reviewing relationships with their U.S. counterparts to avoid being caught by tough new American rules on derivatives trading that are about to come into force. From the start of next year, non-U.S. banks that annually deal in at least $8 billion worth of products such as interest rate swaps with American counterparties are expected to be subject to new derivatives rules in the Dodd-Frank Act.
Prudential top bidder for Hartford life insurance business -Bloomberg (Reuters)
Insurer Prudential Financial Inc. has emerged as the top bidder for the individual life insurance business of rival The Hartford Financial Services Group Inc, a sale that could be worth roughly $1 billion, Bloomberg reported on Saturday. A possible deal between the No. 2 U.S. life insurer Prudential and The Hartford is still weeks away and could crumble, Bloomberg reported, citing two people with knowledge of the matter.
Groupon Investors Give Up (WSJ)
Some of the early backers of Groupon Inc., including Silicon Valley veteran Marc Andreessen, are heading for the exits, joining investors who have lost faith in companies that had been expected to drive a new Internet boom. At least four Groupon investors who held stock in the daily-deals company before it went public have sold or significantly pared back their holdings in recent months. Since its initial public offering in November, Groupon has shed more than three-quarters of its stock-market value, or about $10 billion.
Understanding tail-risk hedges & funds – part five – survey results (Opalesque)
Over the course of this series, we have examined the history of tail-risk, including the strategies employed by various risk experts, funds, and fund of hedge funds, in order to protect investor wealth during a tail event. Now, we bring you the results of a survey in which we asked our readers to share their thoughts on tail-risk. Please note: the survey was entirely opt-in, and is not scientific. The results outlined below reflect only the opinions of those who responded. We asked 13 questions on the various aspects of tail-risk. The first question asked how much of a premium investors were willing to pay for their tail-risk hedges.
July was a letdown for U.S. hedge funds: hedge fund news, week 33 (Opalesque)
In the week-ending 17 August 2012, it was reported that Epic Partners Investments has launched an Asia-focused long/short equity fund. Tiger Asia Management closed down and will return investors money amid a probe by Hong Kong regulators, Bloomberg reported. Macro CTA managers captured strong trending dynamics across multiple asset classes, pushing Hedge Fund Research’s HFRI Macro Systematic Diversified Index to a gain of +2.77% in July (1.80% YTD); the Dow Jones Credit Suisse Hedge Fund Index finished up +1.42% in July (+3.65% YTD);
Hackers target hedge funds (Absolutereturn-Alpha)
It’s the type of thing that keeps a hedge fund manager up at night: hackers watching their trades and tapping into their investment accounts using discrete, remote computer access. Investment ideas stolen. Bank accounts drained. Erroneous trades placed. That’s what someone was apparently trying to do in targeting employees at hedge funds with a so-called keylogger virus, according to online security company Barracuda Labs.
SEC Shuts Down $600 Million Online Pyramid and Ponzi Scheme (SEC)
The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze to halt a $600 million Ponzi scheme on the verge of collapse. The emergency action assures that victims can recoup more of their money and potentially avoid devastating losses. The SEC alleges that online marketer Paul Burks of Lexington, N.C. and his company Rex Venture Group have raised money from more than one million Internet customers nationwide and overseas through the website ZeekRewards.com, which they began in January 2011.
New Charges in Insider Trading Case Include Former CEO and Professional Baseball Player (SEC)
The Securities and Exchange Commission today announced a second round of charges in an insider trading case involving former professional baseball players and the former top executive at a California-based medical eye products company that was the subject of the illegal trading. The SEC brought initial charges in the case last year, accusing former professional baseball player Doug DeCinces and three others of insider trading on confidential information ahead of an acquisition of Advanced Medical Optics Inc. DeCinces and his three tippees made more than $1.7 million in illegal profits, and they agreed to pay more than $3.3 million to settle the SEC’s charges.
SEC Charges Oracle Corporation With FCPA Violations Related to Secret Side Funds in India (SEC)
The Securities and Exchange Commission today charged Oracle Corporation with violating the Foreign Corrupt Practices Act (FCPA) by failing to prevent a subsidiary from secretly setting aside money off the company’s books that was eventually used to make unauthorized payments to phony vendors in India. The SEC alleges that certain employees of the India subsidiary of the Redwood Shores, Calif.-based enterprise systems firm structured transactions with India’s government on more than a dozen occasions in a way that enabled Oracle India’s distributors to hold approximately $2.2 million of the proceeds in unauthorized side funds.
SEC Charges College Football Hall of Fame Coach in $80 Million Ponzi Scheme (SEC)
The Securities and Exchange Commission today announced fraud charges against a former college football coach who teamed with an Ohio man to conduct an $80 million Ponzi scheme that included other college coaches and former players among its victims. The SEC alleges that Jim Donnan, a College Football Hall of Fame inductee who guided teams at Marshall University and the University of Georgia and later became a television commentator, conducted the fraud with his business partner Gregory Crabtree through a West Virginia-based company called GLC Limited.
Hedge Fund Tech Provider Launches New Brand: SS&C GlobeOp (HedgeCo)
Cloud-based software provider for the hedge fund industry, SS&C Technologies Holdings, Inc., has launched a new corporate brand, including a new logo and corporate slogan: ”Don’t Wonder. Know. Anything. Anytime. Anywhere”. The SS&C Fund Services and GlobeOp business units have been consolidated under a single business unit, and renamed SS&C GlobeOp.
Absolute Return Ranks Biggest Hedge Fund Launches For H1 2012 (HedgeCo)
33 hedge funds raised $10.4 billion in the first half of the year, Absolute Return reports, that’s half of the amount raised in the first half of 2008. Some key points include: Half of the total came from a single launch from Renaissance Technologies, which slashed its fees to 1%/10% for the occasion. Second biggest was Todd Kantor’s Encompass, followed by 29-year-old wunderkind Jennifer Fan’s Arbalet Capital.
WesternOne CEO buys (TheGlobeAndMail)
WesternOne Income Fund CEO Darren Latoski has been buying again. On Aug. 14, he bought 5,000 units in the public market at $8.20. Over the past year, he has spent $167,939 buying units in the public market. The construction and infrastructure services firm has grown by acquiring primarily equipment rental businesses across Western Canada. Once approvals are in hand, the fund plans to convert to a corporation as of Dec. 31 of this year. The firm expects to maintain its 5-cent monthly distribution after conversion.
A low-volatility strategy boosts U.N. pension fund (PIOnline)
The $43 billion United Nations Joint Staff Pension Fund has joined the ranks of institutional investors adding low-volatility equity strategies to their portfolios, with an allocation that has grown to more than $500 million. Unlike some that have made strategic allocations to low-vol strategies in recent years, executives overseeing the New York-based United Nations pension fund called their move a tactical one, against the backdrop of longer-term efforts to boost an internally managed alternatives program.
Aetna to Buy Coventry Health Care for $5.7 Billion (NYTimes)
Aetna announced on Monday that it would buy Coventry Health Care for about $5.7 billion in cash and stock, in a move by the insurer to push further into government-backed programs like Medicaid. Under the terms of the deal, Aetna will pay about $42.08 a share, with nearly two-thirds of that amount expected to be in cash. The figure is about 20 percent above Coventry’s closing price on Friday.
Best Buy Names Hospitality Executive as New Chief (NYTimes)
Best Buy has hired the chief executive of the hospitality company Carlson as its new leader, after saying that an olive branch that the company had offered to its discontented founder had been rejected. Best Buy’s naming of the Carlson chief, Hubert Joly, is likely to be the first of several disclosures the company plans to make to assure investors that the struggling electronics retailer can turn around its fortunes on its own.
