Tiger Global Falls 2.9 pct in March, Down 5.3 pct in Q1 (Reuters)
Investment firm Tiger Global Management, one of the hedge fund industry’s most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent, the investor, who is not permitted to speak about the fund publicly, said. Many hedge funds are still compiling quarterly data, but so far the average hedge fund is up 2.27 percent this year, research firm Hedge Fund Research said. Tiger Global, which has a taste for tech-oriented investments, was founded in 2001 by Chase Coleman with the backing of industry legend Julian Robertson.
Hedge Funds Bet Big on PetSmart Price Bump (Wall Street Journal)
A hedge-fund investing strategy aimed at squeezing more money from corporate takeovers has its biggest test yet: PetSmart Inc. The funds, including Fortress Investment Group LLC and Daniel Loeb’s Third Point LLC, plan to avail themselves of a legal remedy known as “appraisal,” in which a judge determines the fair value of the stock. Little used until about a year ago, the strategy has surged in popularity, attracting ever-larger wagers from hedge funds hungry for returns. These funds typically buy shares just before a deal closes with the intention of seeking more in court.
Pawn to Cushion Payday Lenders from Regulatory Blow (Reuters)
Payday lenders that have substantial pawn operations are better positioned to absorb the blow from proposed U.S. regulations aimed at cracking down on an industry that has been criticized for saddling borrowers with debt they cannot repay.”The proposed rules are so far-reaching that they will basically put the entire small-business portion of this industry out of business,” said Phil Frohlich, a portfolio manager at hedge fund Prescott Group Capital Management LLC, which owns shares of payday lender Enova International Inc.
Hedge Fund Says BNY Mellon is ‘bloated’ with 10,000 Excess Staff (Reuters)
Activist hedge fund Marcato Capital Management on Tuesday said BNY Mellon Corp’s employee base is “bloated” and disproportionately larger than its rivals. Marcato, which owns about 1.6 percent of BNY Mellon’s stock, previously has called for the ouster of Chief Executive Gerald Hassell, saying he has missed profit targets and has failed to streamline the bank’s expense base. BNY Mellon, the world’s largest trust bank, declined to comment. Marcato, a $3 billion fund led by Richard McGuire, said BNY Mellon rivals, including State Street Corp, Vanguard Group and BlackRock Inc, have far fewer employees.
Canon extends Axis offer period, says will not sweeten bid (Reuters)
Canon Inc said it was extending the offer period for its proposed $2.7 billion takeover of Swedish video-surveillance firm Axis AB after falling short of its ownership goals, but stressed it would not be raising its bid. Seeking to expand in the fast-growing surveillance camera business amid flagging sales of digital cameras, Canon is set to secure a holding of 76 percent after its earlier acceptance period expired, but it is aiming to take full control. U.S. hedge fund Elliott Management complicated the bid after it raised its stake in Axis to 10.01 percent, effectively ruling out a standard squeeze-out procedure in which Canon, once it owns more than 90 percent, can forcibly acquire the rest.
Argentina Sues Citibank Seeking to Undo Holdout Creditor Accord (Bloomberg)
Argentina said it is suing Citibank Argentina SA in local courts for reaching an accord with holdout creditors that the government says is illegal. Argentina is seeking to nullify an accord between Citigroup Inc.’s local unit and hedge fund NML Capital, which was approved by U.S. District Court Judge Thomas Griesa, that allows the bank to make two bond payments while it exits its role as a securities custodian in the country.
Hedge Fund Silver Ridge Delays Launch Amid FCA Inquiry (Wall Street Journal)
The launch of a hedge fund by the former head of foreign exchange at Citigroup Inc. has been delayed because of an inquiry by the U.K. Financial Conduct Authority, according to one of the founders of the fund. Silver Ridge Asset Management, a macro hedge fund set up by Anil Prasad, head of Citigroup’s currencies business until 2014, and Farhang Mehregani, a former equity trader at the bank, was due to start trading in early April with initial capital of several hundred million dollars. But in light of the inquiry, the founders have told investors that they have put the launch on hold for at least a few months, according to a person familiar with the matter.
More Equities Team Changes at UBS (CNBC)
UBS has new leaders in its equities business—again. Chris Leone and Dushyant Chadha have been promoted to be Americas co-heads of equities, according to an internal memorandum sent Tuesday afternoon by global equities co-heads Robert Karofsky and Roger Naylor. The pair replace Paul Galietto, who is leaving the bank. A spokesman for Switzerland-based UBS confirmed the contents of the memo but declined further comment. Galietto did not respond to a CNBC email seeking comment.
Investors Pull Out $4 Bln From Hedge Funds Amid Lackluster Returns (CNBC)
Wealthy investors protested the hedge fund industry’s recent lackluster returns and high fees by pulling a net $4 billion out of the $2.5 trillion industry during the first two months of 2015, data released on Tuesday show. The number contrasts with the heady days of 2014 when investors added $31.6 billion of new money in January and February, research firms BarclayHedge and TrimTabs Investment Research said.
