Editor’s Note: Related tickers: Microsoft Corporation (NASDAQ:MSFT), Citigroup Inc (NYSE:C), J.C. Penney Company, Inc. (NYSE:JCP), Nokia Corporation (ADR) (NYSE:NOK)
Einhorn’s Greenlight Gains Despite Green Mountain Surge (InstitutionalInvestorsAlpha)
David Einhorn‘s Greenlight Capital hedge fund rose 0.9 percent in August. This is quite a feat given that most market indices fell sharply for the month. For example, the S&P 500 dropped 3.1 percent, the Dow fell 4.4 percent and the Nasdaq declined 1 percent. New York-based Greenlight’s main fund is now up 11.7 percent for the year, and is on pace to record its best year since 2009, when it surged 32.1 percent. Greenlight is the first hedge fund to report results for the entire month of August.
ValueAct Hedge Fund’s Huge Microsoft Victory (Forbes)
Microsoft Corporation (NASDAQ:MSFT) -0.45% called it a cooperation agreement and made the announcement late on Friday, just prior to the Labor Day weekend and some pretty big deal making news, but there is no masking the huge victory that hedge fund ValueAct has scored in Redmond, Wash. Despite owning a mere 0.8% stake in Microsoft Corporation (NASDAQ:MSFT), ValueAct Capital Management has forced its way onto the board of the software giant days after longtime Microsoft CEO Steve Ballmer announced he would be quitting within a year—a move that appeared to have ValueAct’s finger prints all over it.
Citigroup dialing back its ‘alternative’ holdings (eFinancialNews)
The nation’s third-largest bank by assets last week sold a $4.3 billion private equity fund called Citi Venture Capital International for an undisclosed price to Rohatyn Group, a private equity fund run by Nick Rohatyn, son of financier Felix Rohatyn, said people familiar with the matter. It couldn’t be determined what price the fund fetched. On August 9, Citigroup Inc (NYSE:C) sold a $1.9 billion emerging markets hedge fund to the fund’s managers, the people said. Citigroup Inc (NYSE:C) once was a big player in so-called alternative investments, such as hedge funds and private equity…
Kyle Bass Discloses 5.2% Stake in J.C. Penney (WSJ)
Hedge-fund manager Kyle Bass, of Hayman Capital Management LP, disclosed a 5.2% stake in J.C. Penney Company, Inc. (NYSE:JCP), placing Mr. Bass among the struggling department-store chain’s largest stockholders. J.C. Penney shares were up 2.6% at $12.80 in recent premarket trading. The stock is down by 37% this year, including a drop of roughly 15% last month. Mr. Bass holds 11.4 million of the department store retailer’s shares, according to a filing with the Securities and Exchange Commission.
Ex Psagot execs to set up hedge fund (Globes)
Former Psagot Investment House Ltd. CEO Roy Vermus is returning to the capital market. He will establish a hedge fund with Psagot Provident Funds and Pension CEO Shlomi Bracha, who will leave the investment house. Vermus has been out of the capital market since 2010, following the nostro scandal at Psagot, which resulted in his ouster from the investment house. The case against him was closed a few months ago without an indictment. Vermus and Bracha’s hedge fund will focus on investing in bonds of companies undergoing debt settlements, a subject on which they are experts.
Trustee’s hedge fund indicted for fraud (BrownDailyHerald)
After years of mounting investigations into alleged insider trading at his hedge fund, Corporation Trustee Steven Cohen P’08 P’16 took two big hits this summer when federal authorities filed a civil case against him and criminal charges against the fund, SAC Capital Advisors L.P. Administrators still have not said whether or how the charges might affect Cohen’s status as a trustee. As of Monday evening, Marisa Quinn, vice president for public affairs and University relations, had not responded to requests for comment.
Mad Money, August 30, 2013 (CNBC)
Yet another twist in Billabong saga (SMH)
The never-ending battle for control of troubled surfwear group Billabong, now almost entering its second year, has taken another twist after an activist New York hedge fund demanded a shareholder meeting to dump the board and derail an already partially executed $325 million rescue deal. But as more bidders for the crippled Billabong come crashing through the front door, key managers of the retailer are leaving by the back, with two executives from the company’s Von Zipper fashion sunglasses brand resigning last week, adding to the two who jumped ship only a week before.
Bad Actor rule does not worry Asian hedge funds (AsianInvestor)
Asian hedge fund managers say they are not worried that incoming legislative amendments under Dodd-Frank rules which will require the disclosure of past offences will impact the region. Under the Bad Actor rule, set to become effective on September 23 along with other updates, senior management will need to disclose to US investors criminal convictions, injunctions and disciplinary orders from US courts and regulators. Securities offences committed outside the US will be exempt.
Ebullio exits physical metals (Reuters)
Hedge fund Ebullio Capital Management says it has exited physical metals trading after struggling to compete in a market dominated by big banks and trade houses, which are facing U.S. regulatory scrutiny of their metals business. A drought in financing for metals trading since the global financial crisis has also slashed profits, Lars Steffensen, executive managing partner of British-based Ebullio, told Reuters. “It’s a market that’s been sown up by banks and trade houses, and others can’t operate. That’s ok, that’s business, but we can choose not to be in that business,” said Steffensen.
Nokia handset sale hammers hedge funds (MSN)
Hedge funds betting that the collapse in Finnish telecom group Nokia Corporation (ADR) (NYSE:NOK)‘s share price would continue got a rude surprise on Tuesday, and their rush to unwind their bets left the stock eyeing a record daily gain. Nokia shares, which are down 93 percent from a 2000 high of 65 euros, rose nearly 50 percent on news the firm would sell its handset business to U.S. group Microsoft Corporation (NASDAQ:MSFT), a move analysts said should lure back longer-term investors. Before the announcement nearly 12 percent of Nokia’s stock was out on loan from long-term holders of the stock, which is an indication of the demand by hedge funds and others to borrow the stock to engage in a ‘short’ trade.
Hedge fund beta interest grows, but capacity strained (PIOnline)
A small but growing number of institutional investors are abandoning hedge funds in favor of their clones — hedge fund beta portfolios. But those still making up their minds had better hurry: The industry’s largest hedge fund beta manager, AQR Capital Management LLC, is running out of capacity and few other institutional-quality strategies are ready for prime time, consultants said. Interest among institutional investors in rules-based hedge fund beta strategies is growing, part of “an evolution of the understanding of hedge fund returns,” said Steven J. Foresti, managing director and head of the investment research group of the consulting unit at Wilshire Associates Inc., Santa Monica, Calif.
