Editor’s Note: Related tickers: Sony Corporation (ADR) (NYSE:SNE), Advent Software, Inc. (NASDAQ:ADVS), MGIC Investment Corp. (NYSE:MTG), Radian Group Inc (NYSE:RDN)
Sony’s Kazuo Hirai Says Third Point Campaign Was ‘a Good Thing’ (WSJ)
Hedge-fund investor Dan Loeb‘s campaign to persuade Sony Corporation (ADR) (NYSE:SNE) -0.28% to spin off part of its entertainment business was beneficial for the company, Chief Executive Kazuo Hirai said, making one of his first public comments since rejecting the proposal. Sony Corporation (ADR) (NYSE:SNE) is better off holding on to all of its movie and music businesses, Mr. Hirai said, but he agreed with a few of the billionaire investor’s other points. Mr. Loeb’s Third Point LLC wanted to take up to 20% of Sony Corporation (ADR) (NYSE:SNE)’s entertainment arm public.
Mortgage insurance stocks look more appetizing (HousingWire)
Hedge fund investors are betting on the mortgage insurance business, estimating that it will be a good investment for the foreseeable future, The Wall Street Journal reports. The turnaround has fueled a strong rally in the stocks of MGIC Investment Corp. (NYSE:MTG) and Radian Group Inc (NYSE:RDN). The shares are up 189% and 133%, respectively, this year. Bulls include Paulson, the hedge fund that prospered on a well-timed bearish bet on the housing market in the early stages of the financial crisis…
Hedge Fund Survey Demonstrates Critical Value of Research Management Solutions (Investors)
Advent Software, Inc. (NASDAQ:ADVS), a leading provider of software and services for the global investment management industry, today announced the results of a survey on how investors select hedge funds titled, ‘Pitch Perfect, How Investors Choose Funds.’ The comprehensive survey was designed to determine not only what investors look for when making new hedge fund investments, but also the potential stumbling blocks fund managers should take pains to avoid when making their pitch.
How the Winklevoss twins disrupted a big NYC hedgie event and distracted from the poor job most hedge funds are doing for clients (RiaBiz)
Here’s the thing about hedge fund managers: It’s all about the money — making it and preserving it. That mission differs from financial advisors who, in addition to making money for their clients, serve as human lightning rods that absorb the emotional and spiritual dislocation associated with having and keeping wealth. Since hedge fund managers have one thing to do and charge dearly for it — at 2% of assets and 20% of gains, more than any other financial advisor or asset manager — you’d think that they would be excellent at making money for clients.
U.S. Dominates Hedge Fund Industry (Finalternatives)
U.S.-based hedge funds have bounced back from the financial crisis better than those in other regions and account for 73% of total hedge fund industry assets, according to new research from data provider Preqin. U.S. funds have added $150 billion to their assets under management year to date, thanks in large part to performance, although Preqin points to some “significant” commitments to U.S.-based funds this year. By way of comparison, Europe-based hedge funds have added $33 billion to their AUM year-to-date.
Gloom, Boom & Doom’s Marc Faber: We Are in ‘QE Unlimited’ (YouTube)
US hedge funds take OTC clearing in their stride (HedgeWeek)
“Even though as a quantitative trading firm with a lot of technology infrastructure in place we’ve been able to handle a lot of the regulatory requirements internally, we can’t do everything. We’ve had to lean a little more on our service providers, in particular consulting our legal advisers, over the last 12 months,” explains Ken Shoji, COO of New York-based GSB Podium Advisors, an equity statistical arbitrage fund. Hedge fund managers face a delicate balancing act.
Are Activist Hedge Fund Managers Really Running the Show on Wall Street? (247WallSt)
The activist investor has been around forever on Wall Street. For years the portfolio managers and equity strategist at the big mutual fund companies were the ones that really could drive change at a company. When Peter Lynch was running the show at Fidelity in the 1980s and 1990s, his power, and the purchasing power of Fidelity, was so great that they often could dictate everything from replacing a CEO to securing a board seat. The days of the mutual funds calling the shots are not over, but certainly diminished. The proliferation of fund families, as well as an extended 13-year secular bear market, put a large dent in their assets under management, especially for their equity funds that were large buyers of stock. Somebody though has found a place at the table, and sometimes it is as a guest that many companies wish had no invitation.
Levine on Wall Street: Hedge Fund Ads, $10 Billion Banks, Paying Yourself First (Bloomberg)
After rule changes due to the JOBS Act, “Starting on Monday, hedge funds, private equity funds and other firms will be allowed to reach new investors through television, radio and the Internet.” Nobody is sure what the equilibrium will be here. A lot of the biggest and most prestigious hedge funds, for instance, are somewhat secretive and closed to new investors, so advertising by hedge funds might be viewed as a sign of weakness. On the other hand small hedge funds seem to outperform bigger ones, so advertising might be a way to translate that performance into actual investors.
Jim Rogers Calls For A Gold Price Drop To $900 (ETFDailyNews)
Commodities investor Jim Rogers tells The Daily Ticker that gold, having lost its luster as a safe haven, could drop to $900 or $1,000 in the next 1-2 years. Longer term, he has a very different forecast. Gold will soar to “well beyond $1,900 an ounce,” topping its record $1,920 high reached in September 2011, says Rogers, author of Street Smarts: Adventures on the Road and in the Markets. The reason: “massive currency debasement” around the world. “Every major central bank in the world is printing a lot of money plus war, chaos, riots in the street, governments failing,” says Rogers. Despite that forecast, Rogers warns investments not to consider gold – or any other investment — safe. “I would never use the word ‘safe’ when I’m speaking about investing.”
Man Group and 5 Other Funds Gain Foothold in China (NYTimes)
The Man Group has confirmed that it is one of six hedge funds to receive the green light to operate in China. In the next few months, the Man Group, a London-based hedge fund, will be able to raise $50 million from institutions in China to invest around the world, as part of a pilot program in China’s financial city of Shanghai. It is one of a series of small steps that Chinese officials have taken in recent months to dismantle the barriers that separate their country from global markets. Wall Street and other financial hubs had been watching for these changes for years.
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