Winton’s Profit Fell 64% in 2012 After Losses at Biggest Fund (BusinessWeek)
Winton Capital Management Ltd., the $24.5 billion hedge-fund firm founded by David Harding, said profit plunged 64 percent last year after its main fund posted just its second annual decline since starting in 1997. Earnings after taxes fell to 58.6 million pounds ($95.1 million) in 2012, compared with 162 million pounds in 2011, London-based Winton said in a U.K. Companies House filing published today. Winton, which earns its most lucrative fees from investment gains made at the firm’s hedge funds, said revenue declined 45 percent to 193 million pounds.
Investors turn their backs on “robot” hedge funds (Reuters)
Investors in the $330 billion computer-driven hedge fund sector are pulling out money for the first time since 2008, data showed on Wednesday, signalling the possible start of a bigger exit from the industry. These so-called CTAs (commodity trading advisors), which employ mathematicians and physicists to build programmes betting on market trends, have been in demand since they racked up large profits during the credit crisis.
Ackman Still Short Herbalife (HLF), But Now Has Different Approach (StreetInsider)
Bill Ackman is making a smarter bet on Herbalife Ltd. (NYSE:HLF). According to a third-quarter 2013 performance letter issued by hedge fund Pershing Square, Ackman has converted about 40 percent of his short on Herbalife into long-term put options. On the position, Ackman commented, The restructuring of the position preserves our opportunity for profit – if the Company fails within a reasonable time frame we will make a similar amount of profit as if we had maintained the entire initial short position – while mitigating the risk of further substantial mark-to-market losses – because our exposure on the put options is limited to the total premium paid.
Highfields Capital joins hedge fund chorus seeking to slim down (BizJournals)
Count Highfields Capital of Boston among the growing list of hedge funds returning money to clients. According to Reuters.com, which reviewed a letter sent by the local money manager to its investors, Highfields plans to return as much as $2 billion of its $13 billion under management due to an overall lack in attractive investment opportunities. “While we are quite comfortable with our ability to generate good returns at our current size, we would rather be slightly smaller and generate better ones,” wrote Highfields co-founder Jonathan Jacobson, according to the Reuters report.
Billionaire Dan Loeb Blasts Sotheby’s CEO For Spending ‘Hundreds Of Thousands’ On Luxury Lunches (Forbes)
Billionaire hedge fund manager Dan Loeb doesn’t care that Sothebys (NYSE:BID) recently replaced its CFO for a former Goldman Sachs Group, Inc. (NYSE:GS) partner and managing director, and that the auction house is reviewing its books to increase shareholder value. On Wednesday, the head of Third Point sent a scathing letter to management, announcing he had become the company’s largest shareholder and is calling for William Ruprecht, chairman, president and CEO of Sotheby’s, to step down given his lack of leadership, excessive pay and perks, and how rival Christie’s has eaten their lunch since the financial crisis;
Chief operating officer of $780 mln Segantii hedge fund leaving (Reuters)
Segantii Capital’s Chief Operating Officer Nigel Hellewell is leaving the company a year after joining one of the most successful home-grown hedge funds in Asia. Hellewell joined Segantii from London-based BlueCrest Capital Management last year. Segantii CEO Kurt Ersoy confirmed Hellewell was leaving but did not give any details about his departure. Segantii’s fund, launched in 2007 by the former head of Asian equity trading for HSBC Securities Simon Sadler, managed $780 million at the end of August and is up about 4 percent this year, according to data seen by Reuters.
Keiser on shutdown: America one giant hedge fund & world’s greatest soap opera (YouTube)
UBS Set To Unveil Asia Hedge Fund (Finalternatives)
UBS AG (ADR) (NYSE:UBS)‘s hedge fund unit has launched its first Asia-focused hedge fund and will open it to outside investors later this year. UBS O’Connor launched the O’Connor Asia Fund in August with internal capital. The fundamental, tactical long/short equity fund is headed by John Bradshaw in Singapore and David Perrett in New York, Bloomberg News reports. All told, the fund’s team numbers 10, including a presence in Hong Kong. The group has traded for O’Connor’s flagship hedge fund since April of last year. Bradshaw and Perrett are former members of UBS’ proprietary-trading operation, and have worked together since 2005.
Icahn Chasing More Dell Cash Shows Rise of Appraisal Arbitrage (BusinessWeek)
Carl Icahn’s plan to seek a higher price for his stake in Dell Inc. (NASDAQ:DELL) put the spotlight on a section of Delaware law that is being used by a growing group of money managers to squeeze more cash from corporate buyouts. Icahn, 77, has vowed to petition the Delaware Chancery Court for an independent valuation of his 8.9 percent stake in Dell, the computer maker that won shareholder approval last month for a $24.9 billion buyout led by founder Michael Dell. Should he proceed, Dell would have to pay him whatever the court decides his stake, valued at $2.2 billion under the buyout terms, is worth. Icahn would get accrued interest of almost 6 percent on the award, regardless of whether it is more or less than he would have received through the original deal.
Marc Faber: 7 Key Insights About Today’s Debt Bubble (ETFDailyNews)
Based on a diversity of recent interviews with Marc Faber we could paint a picture of how the Swiss investor thinks about the ongoing debt crisis and especially its implosion. This article provides a summary on seven critical points. The dangers of a market crash: “Unlike the ’50s and ’70s when there was relatively less overall debt, a financial market crash did not inflict great damage on the economy. Debt levels are significantly higher these days, and so a market crash can inflict serious damage on economies. We’ve gone through a period of huge asset inflation, in stocks, bonds, commodities, and real estate, and we essentially now have in the world, a huge asset bubble. So everything is grossly inflated.”
Doctor Doom warns of Spanish debt trap (IFAMagazine)
Speaking at a conference, New York University (NYU) Economics Professor Nouriel Roubini has offered his economic forecasts for Spain, stating that growth will not surpass 1 per cent during the next three or four years, Spanish daily El Economista reports. Roubini added that growth will not be enough to reduce the excessive unemployment rate. Although he acknowledged that exports have improved, Roubini explained that Spaniards will find themselves in a debt trap as salaries fall in an internal devaluation necessary to improve competitiveness and as home prices fall, making households more indebted in turn hurting domestic demand.
BlueCrest Hires Nomura’s Head of Emerging Market Credit Trading (BusinessWeek)
BlueCrest Capital Management LLP, the $36 billion hedge-fund firm run by former JPMorgan Chase & Co (NYSE:JPM) trader Michael Platt, is hiring Nomura Holdings, Inc. (ADR) (NYSE:NMR)’s head of emerging markets credit trading, Marcel Kfoury. Kfoury, who joined Nomura in July 2009, resigned on Oct. 1 to become credit portfolio manager for the hedge fund, he said today in a phone call from London. He’ll be based in the U.K. capital and will start his new post in January, he said.
Einhorn’s Is Positive On Vodafone Group Plc (NASDAQ:VOD) (GDPInsider)
The hedge-fund manager, David Einhorn, said that AT&T Inc. (NYSE:T) might target Vodafone Group Plc (ADR) (NASDAQ:VOD) for a takeover bid once the British company breaks its Verizon joint-venture. Verizon has acquired Vodafone Group Plc (NASDAQ:VOD) Verizon’s Wireless stake in a deal worth $130B. Now it just seems like the company has an attraction quotient attached to it, especially for companies that are seeking to expand into Europe, said Einhorn. The hedge fund manager is Greenlight Capital’s president. The hedge fund has a stake in the communications company. Lucrative market On Bloomberg, Einhorn said that if you take away Verizon Communications Inc. (NYSE:VZ) from the Vodafone Group Plc (NASDAQ:VOD) equation, what is left is the European business and this makes the company a very attractive proposition.
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