Nomura Asset Management announces alliance with Tokyo-based HF incubation firm (PIOnline)
Nomura Asset Management announced an alliance Wednesday with Bridge Capital Asset Management Co., a Tokyo-based hedge fund incubation firm. Under an agreement reached by the two firms, Nomura Asset Management will invest up to 3 billion yen (US$29.3 million) in Bridge Capital’s incubation fund for hedge fund managers focused on Japanese equities, with an option to take an equity stake in the firm in the future. A Nomura spokesman said his firm’s capital commitment will be drawn down as and when Bridge Capital identifies new incubation candidates.
Contrarian’s Schwartz Joins PIMCO (Finalternatives)
Hedge-fund manager Ethan Schwartz has joined Pacific Investment Management Co. as the troubled bond-fund giant seeks to diversify into other asset classes. Schwartz joined the California firm in New York as a money manager, focused on distressed credit. He formerly covered that area as a senior analyst at Contrarian Capital Management, where the former journalist helped manage about $2.7 billion.
Avenue Capital Sues Quiznos Former Ownership for Fraud (BlueMaumau)
Multi-billionaire hedge fund investors Avenue Capital and Fortress Investments filed a federal lawsuit against Quiznos former owners Richard ‘Ric’ Schaden,father Dick Schaden and key executives. The complaint alleges that they engaged in a “conspiracy to defraud” when the investors took over the troubled sandwich chain in 2012. The lawsuit claims Quiznos’ management team put together the conspiracy in an effort to induce the investment firms to purchase equity in the franchise company, inject liquidity into it by Avenue Capital, and restructure debt that Quiznos owed to the investors…
The Alphas and Betas of Hedge Funds (WSJ)
Hedge funds remind investors that there are viable alternatives to timing the traditional stock and bond markets as a way to manage risk and generate positive returns. On the plus side, they demonstrate that investment opportunities exist in every market, in every business cycle. On the negative side, they are not for every investor. While they may succeed in reducing systematic risk, they still can be highly risky investments, due to leverage and illiquidity. Hedge funds can offer outsize expected returns to investors, but the biggest returns by far go to those who manage the funds.
Ledbury launches maiden equity and special sits hedge fund (Opalesque)
Ledbury, an emerging hedge fund shop launched by Michael Alsalem, started trading last month. Ledbury Capital Partners LLP is a London-based investment manager specializing in deep value special situations European equities and co-founded by CIO Michael Alsalem and COO Chude Chidi-Ofong, according to Wells Fargo & Co (NYSE:WFC). Previously Alsalem worked at Centaurus Capital, Highbridge Capital Management, Kingdon Capital and K Capital; and Chude Chidi-Ofong worked at Eton Park International LLP, Caxton Europe Asset Management Ltd and DE Capital Management LLP.
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