We have just obtained Dan Loeb’s Third Point hedge fund stat sheet for September, which discloses a new position in ‘Greek Government Bonds (GGB)’ (more on the position below). Earlier, we posted Dan Loeb’s Third Point LLC shareholder letter for the second quarter. Loeb discusses politics, the European crisis, and various holdings of the value oriented hedge fund. Loeb purchased a stake in Kraft Foods Inc. (NASDAQ:KFT) in July and a stake in American International Group, Inc. (NYSE:AIG),in August. According to Third Point’s latest letter, the year to date return for the fund is 10.9%. For August, the fund returned an impressive 3.4%. The flagship hedge fund currently has $4.7 billion in Assets under management (AUM). The total assets of the firm are currently, $9.3 billion, which could be a new record high. Both total AUM and AUM for the main flagship hedge fund has increased over the past several months.
Carlyle Buys Hedge Fund Vermillion in Commodities Expansion (SFGate)
Carlyle Group LP, the second-largest buyout firm, bought commodities hedge-fund manager Vermillion Asset Management LLC, adding $2.2 billion in commodities assets as the firm expands beyond private equity. Carlyle purchased 55 percent of Vermillion for a mix of cash, stock and performance-based payouts, effective Oct. 1, Carlyle said today in a statement. The price wasn’t disclosed.
Trend Capital adopts Navatar Hedge Fund CRM for cloud computing (HedgeWeek)
Trend Capital, a Greenwich Connecticut based global macro hedge fund, has deployed Navatar Hedge Fund Cloud to manage its fundraising and investor relations. Navatar Hedge Fund Cloud helps manage operational functions, including investor subscriptions and redemptions, fund offering and returns, security holdings and trades, fund exposure and risk.
Soroban Fund Buys 5.1% Stake in Williams Pipeline Company (SFGate)
Soroban Master Fund LP, founded by former TPG-Axon Capital Management LP Co-Chief Executive Officer Eric Mandelblatt, bought a 5.1 percent stake in Williams Cos., becoming the pipeline company’s third-largest shareholder. The fund owns 31.8 million shares in Tulsa, Oklahoma-based Williams, according to a filing with the U.S. Securities and Exchange Commission today. The Cayman Islands-based fund is part of Soroban Capital Partners LLC, a hedge fund Mandelblatt formed two years ago that also holds shares in Cheniere Energy Inc., SemGroup Corp., Kinder Morgan Inc., Phillips 66 and Spectra Energy Corp., according to an Aug. 14 filing.
Jamba shares jump 4% after Khaner comments (MarketWatch)
Jamba, Inc. (NASDAQ:JMBA) shares jumped on Tuesday after Lloyd Khaner of Khaner Capital, L.P. discussed the company’s growth potential in depth, focusing on the company’s positive outlook. He estimated the smoothie and health drink retailer’s return on invested capital at roughly 5% to 10% this year and spoke about its worldwide growth opportunities. Speaking at the Value Investing Congress in New York, the hedge fund manager talked up its “exceptional brand franchise” and noted its disciplined organization. Shares of Jamba Juice rallied 10% ahead of the opening bell.
Shanghai Hedge Fund Association appoints two industry veterans as advisors (Opalesque)
The Shanghai Hedge Fund Association (SHFA) has announced the appointment of two industry veterans, Anthony D’Silva and Christian Stoiber, as members of the International Advisory Council (IAC) within the association. Anthony D’Silva serves as Managing Director of Apex Investments / Apex Fund Services in Shanghai. Apex Fund Services is a global fund administrator with presence in 15 countries, administering over 300 funds and over USD 15 billion in AUM. Apex Investments, a subsidiary of the Apex group, was set up in 2008 in Shanghai to specialize in China deal sourcing and due diligence. Prior to joining Apex, Anthony was Director of Investor Relations and Business Development with SHK Fund Management. Before that, he worked with Refco as Head of Fund Services and Hedge Fund Sales and Eurekahedge as Head of Business Development.
Madoff Employee Trial Set for October 2013 (WSJ)
A group of former employees of convicted Ponzi scheme operator Bernard Madoff will go to trial on criminal charges in October 2013, nearly five years since the massive fraud came to light, a federal judge has ruled. Former Madoff operations director Daniel Bonventre, former back office employees Annette Bongiorno and Joann “Jodi” Crupi and former Madoff computer programmers Jerome O’Hara and George Perez have been accused by federal prosecutors in Manhattan of …
Boston money manager’s FBI talks could point toward SAC Capital higher-ups (BizJournals)
Courtroom documents show the FBI was paying close attention when a Harvard College graduate started talking to them about his experience working for SAC Capital Advisors LP. Noah Freeman, 36, worked in Boston and said he managed a $300 million portfolio for SAC’s Sigma Capital Management unit. In a 2010 proffer session, he told an FBI agent he was expected to bring his best trading ideas to SAC founder Steven A. Cohen, Bloomberg reported, citing the agent’s notes. “Freeman and others at SAC Capital understood that providing Cohen with your best trading ideas involved providing Cohen with inside information,” the agent reportedly wrote.
Maples Fund Services launches fully-integrated risk solution for hedge fund managers (Opalesque)
Maples Fund Services, a leading independent global fund services provider and a division of MaplesFS, has expanded its hedge fund capabilities with the launch of a MaplesFS Connect risk dashboard that will complement the services provided to fund administration clients with a fully-integrated solution for on-line risk reporting. This dashboard will further extend the MaplesFS Connect suite of on-line solutions. The new dashboard leverages the industry-leading technology platform that Maples Fund Services developed for its sophisticated, bespoke risk reporting mandates. Leading practices developed with individual clients have been incorporated into a pre-configured risk dashboard that can be rapidly implemented. Hedge fund managers can use the dashboard to obtain insights into their portfolio, enhance their investor reporting, and demonstrate proper risk monitoring.
Long US and Canadian equities, commodities and M&A offer opportunities for Canadian hedge funds (Opalesque)
Long US and Canadian equities, commodities, and M&A activities are the strategies that offer opportunities for Canadian hedge fund managers and investors, agreed participants in the latest Opalesque Canada Roundtable. The Roundtable was sponsored by Kaufman Rossin Fund Services, an independent full-service provider of specialized administration services to the global financial community and the exchange group Eurex that took place in the offices of Deloitte in Toronto, Canada in September.
Credit Suisse Advances to 2 Prime Broker Worldwide in 2012 Benchmark Survey of Industry Assets (FinChannel)
Credit Suisse is pleased to announce that it is now the second-largest prime broker globally, as recognized in the 2012 Hedge Fund Intelligence survey of assets in prime brokerage. Credit Suisse is pleased to announce that it is now the second-largest prime broker globally, as recognized in the 2012 Hedge Fund Intelligence survey of assets in prime brokerage.
EXANTE launches hedge fund index (HedgeWeek)
EXANTE has launched the EXANTE Hedge Fund Index, which tracks the best performing hedge funds that are listed on the company’s Automated Trading Platform (ATP). Currently composed of 20 top performing management companies, the performance of the index originates from a broad spectrum of strategies: these range from multi-arbitrage, high frequency trading, long/short equity and real estate, through to currencies, commodities, fixed income and volatility strategies.
UMB Fund Services launches proprietary transfer agency business processing solution for hedge funds (HedgeWeek)
UMB Fund Services has further expanded its servicing capabilities with the launch of the Alternative Investment Communication Engine (ACE), a proprietary business process and content management solution. ACE will be used in providing transfer agency services for the growing number of alternative investment asset managers with registered hedge funds that are serviced from UMBFS’ Milwaukee headquarters.
New standards dampen hedge fund performance (AsianInvestor)
Regulation and institutionalisation of hedge funds has contributed to mediocre returns, but investors prepared to deviate from the crowd should be able to find strong performers, says Hugh Forward, managing director of New York-based Cross Border Alternatives. Hedge fund investors “want the latest and greatest and hottest thing in Asia”, notes Forward. Inevitably this leads them to the region’s billion-dollar funds, which are not always the best-performing strategies.
Einhorn’s Latest Target: Chipotle (WSJ)
Greenlight Capital Inc.’s David Einhorn recommended a pair of stocks at an investor conference Tuesday while panning two others, offering Wall Street more of the market-moving picks it has come to expect from the hedge-fund manager. Speaking at the Value Investing Congress in New York, Mr. Einhorn said shares of General Motors Co. GM +2.56% and health insurer Cigna Corp. CI +1.12% were cheap. He also took aim at Chipotle Mexican Grill Inc., CMG -4.17% which he said had a “nosebleed valuation,” and reiterated his distaste for shares of Green Mountain Coffee Roasters Inc., GMCR +2.92% his target at the same conference a year ago.
27-Year-Old Analyst Ryan Fusaro Wowed Everyone At The Value Investing Congress With His Investment Idea (BusinessInsider)
Ryan Fusaro, a 27-year-old analyst at New York-based hedge fund Lioneye Capital Management, impressed some top hedge fund managers with his investment idea. Fusaro was named the winner of the Value Investing Challenge hosted by the Value Investing Congress and SumZero. Approximately 110 people entered their ideas for the contest and a panel of anonymous money managers narrowed it down to three finalists. Then, the investing public voted for a winner.
WHAT SERGEY BRIN AND WARREN BUFFETT CAN TEACH YOU ABOUT BIG DATA (BRW)
Google’s Sergey Brin knows a multi-billion dollar investment opportunity when he sees one. Acutely aware of the competitive edges timely data offers sophisticated investors, the company’s ever-entrepreneurial co-founder once proposed that Google launch a hedge fund. After all, what company on earth enjoyed greater access to more insights more quickly from more people searching for more information? Then-Google CEO Eric Schmidt was appalled: “Sergey, among your many ideas, this is the worst.” (The legal and regulatory entanglements were apparently deemed too daunting to confront.) What a pity.
Bulldog Loses Mutual-Fund Lawsuit Appeal (Finalternatives)
Activist hedge fund Bulldog Investors has run into a string of bad luck in the courts. The New Jersey firm recently lost a bid to have the U.S. Supreme Court hear its appeal of a fine levied by Massachusetts that it said violated its First Amendment free-speech rights. Now, a federal appeals court has rejected its appeal in a case involving allegedly improper mutual-fund trading.
Icahn Advises Humane Society Head in Bid for Tyson Board (WSJ)
The Humane Society of the U.S. is seeking a board seat at Tyson Foods, Inc. (NYSE:TSN) with the help of activist investor Carl Icahn, in a new twist on the group’s efforts to change how big food companies treat animals. The campaign by Humane Society Chief Executive Wayne Pacelle, who is being advised by Mr. Icahn, faces long odds because Tyson has a dual-class stock structure and voting control of the company rests with a partnership of Tyson family members.
Hedge funds to be allowed to advertise (GulfNews)
The firms most likely to benefit first from new rules that would allow hedge funds to conduct wide advertising campaigns aren’t hedge funds. BlackRock Inc, the world’s largest money manager, offers alternative investments and supports the change. So does JPMorgan Chase & Co., the biggest US bank by assets, said two people familiar with its position, who asked not to be identified because the matter is private. The companies have the marketing breadth to seize the opportunity, while hedge funds and private-equity firms with smaller promotional teams may be hindered as investors turn to alternatives for higher returns.
