U.S. stock index futures signaled a slightly higher open on Tuesday, erasing earlier losses after widely followed hedge fund manager David Tepper told CNBC he is “definitely bullish” on stocks. The head of Appaloosa Management often has been credited with sparking the “Tepper Rally” in September 2010, when he told CNBC then that the Federal Reserve would support equity prices. He again stated a position that liquidity would guide the markets, whether in the U.S. or other global markets where central banks are easing conditions. “What’s going to make you bearish?” Tepper said. “I think every place is the place to be in the stock markets of the world.”
The silliness of valuing hedge funds (Reuters)
How do you value a hedge fund? It’s impossible, really. You can see how much it earned in any given year, but past performance is a very bad guide to future results. In any case, all future income is reliant on both the investors and the managers sticking around, which means that the value of a hedge fund to its managers is always going to be higher than the value of a hedge fund to an outside investor with little ability to keep the managers in place. …So Citigroup Inc (NYSE:C), for one, is doing the only thing it can. It spun off Citigroup Inc (NYSE:C) Capital Advisors at the beginning of March; the firm is now called Napier Park Global Capital. It’s mostly owned by its managers, but Citigroup Inc (NYSE:C) has retained a Volcker-compliant 25% stake, so if Napier Park does well on its own, Citigroup Inc (NYSE:C) should be able to make something out of the deal.
Icahn Wants A Seat For Himself On Dell’s Board; Activists Unveil Proposed Directors (Forbes)
Billionaire activist investor Carl Icahn would add himself to Dell Inc. (NASDAQ:DELL) +0.6%‘s board if the buyout proposed by him and Southeastern Asset Management goes through. Icahn and Southeastern say they will begin a proxy fight with Dell Inc. (NASDAQ:DELL) if their deal doesn’t go through. They would add a full slate of 12 new directors and late yesterday evening they publicly announced that roll. It includes investor Bernard Lanigan; Rahul Merchant, a New York City official; Icahn Enterprises President Daniel Ninivaggi; and Jonathan Chirstodoro and Gary Meyers, two men previously nominated to boards by Icahn. …Both Icahn (The Clorox Company (NYSE:CLX) +0.08%, Netflix, Inc. (NASDAQ:NFLX)) and Southeastern (Olympus, Vulcan Materials) are experienced activists, having joined forces just a year ago to revamp Chesapeake Energy Corporation (NYSE:CHK).
GEORGE SOROS: We Need A ‘Pro-European But Anti-Establishment Political Movement’ To Save Europe (BusinessInsider)
George Soros believes someone in the euro zone needs to step up and confront Germany. Maybe even new Italian Prime Minister Enrico Letta. In a recent speech, billionaire financier George Soros made an assertion aimed at the heart of the euro crisis: Germany should either agree to introduce “Eurobonds” – which would mutualize the public debts of all of the euro zone member states – or step out of the way and leave the euro, so that the remaining member states could move forward with debt mutualization. Soros argued that the euro was in fact tearing apart the European Union. This line of thinking is already gaining popularity in Germany, as evidenced by the recent success of new political party Alternative für Deutschland (AfD), which shares the same view and is running on a platform that involves complete dissolution of the euro in order to save the EU.
Equity schemes for rich seek to become hedge funds (Business-Standard)
Various Portfolio management service (PMS) providers are looking to register their tailor-made equity products under a category of the recently-introduced Alternative Investment Funds (AIF) segment that will enable them become hedge funds. Such a switch will give fund managers more flexibility to manage these products, which, under the PMS model, are usually structured to buy and hold stocks for a longer period. PMS products, which are meant for the rich, cannot accept investments of less than Rs 25 lakh per investor. Once these become hedge fund products, fund managers will have far more room for implementing trading strategies especially through futures and options.
Charles Griffin Launches Investor Accreditation Service (Finalternatives)
Consulting firm Charles Griffin Intelligence wants to help hedge funds ensure their investors are accredited. The recently passed JOBS Act ended an 80-year ban on hedge fund advertising but stipulated that investors must be accredited. And while some ambiguity surrounds the definition of an ‘accredited’ investor, the Securities and Exchange Commission has made it clear it will scrutinize hedge funds’ accreditation processes closely. In response, Charles Griffin has launched an accredited investor verification service.
