Editor’s Note: Related tickers: Dell Inc. (NASDAQ:DELL)
David Tepper, who runs a $12 billion distressed-debt hedge fund, Appaloosa Management, emailed in some comments to CNBC’s “Squawk Box” this morning after global markets got crushed yesterday. “All of the concern in the markets is because the Fed sees the economy stronger in the future,” Tepper wrote adding that the Fed’s forecast shows that they will wait for a lower unemployment rate to raise interest rates. He added that he thought that the Fed should start to taper. “Bottom line: When the dust settles only one place to be —— STOCKS.”
Hedge fund managed accounts get serious attention (PIOnline)
Institutional investors are taking a hard look at hedge fund managed accounts as they further unwind hedge funds of funds into direct investments in single- and multistrategy hedge funds or move from separate accounts to gain more control of their investments. Large pension funds like the $259.8 billion California Public Employees’ Retirement System are considering a move to a managed account investment structure. Managed account providers and industry observers report a surge in interest from corporate and public pension funds and sovereign wealth funds around the world, although the U.S. currently is the hottest market.
An eye-opening look at the hedge fund industry (FierceFinance)
There are millions of stories on Wall Street. The best stories, frankly, are the ones that are only told privately. When it comes to the tales that are told for public consumption, you often get sanitized versions that serve a specific PR functions. You might get the truth, but only certain versions of it. All of which makes The Buyside, a memoir by former hedge fund trader Turney Duff, a valuable, intensely personal look into the hedge fund industry. On one level, the book delivers what one would expect given the subtitle: “A Wall Street trader’s tale of spectacular excess.” The author recounts not-unfamiliar tales of hard partying, shockingly conspicuous consumption, drug use, hooker addiction, juvenile behavior by grown adults and so on.
Facing up to hedge-fund ads (CrainsNewYork)
Anyone who rides the subway has seen ads for Jonathan Zizmor, the dermatologist who promises to transform pimply faces into marvels of clear complexion. Soon, Dr. Z may have a challenge of his own: fighting for ad space with hedge-fund managers. Thanks to federal legislation passed last year, hedge funds may soon be able to market themselves directly to the public, ending a decades-old ban. Mary Jo White, the new chairwoman of the Securities and Exchange Commission, has indicated she wants the new rules finalized soon. Once adopted, they would not only free hedge funds to seek investments from all and sundry, but would also make it easier for small companies to reach out and raise money from the man on the street—or riding the subway.
Hedge-fund tycoon splits from ‘spirited’ charity boss (TeleGraph)
Chris Hohn was so passionate about his glamorous wife, Jamie Cooper, that he decided to take her surname as a sign of his devotion. Sadly, Mandrake hears that the marriage of the hugely wealthy hedge fund manager has now lost its sparkle. “They are living separate lives and are expected to divorce,” claims one of their friends. “It’s very sad.” Chris Cooper-Hohn, 45, as he became after their wedding, is one of the world’s most generous philanthropists. The Children’s Investment Fund Foundation, which is run by his wife, gave away almost £1?billion in the five years to 2011. In one year alone, the couple donated a staggering £466?million to their charity.
Tiger Management – Best Seeding Platform (HedgeWeek)
Founded by hedge fund titan Julian Robertson in 1980, Tiger Management LLC became one of the most successful and lauded hedge funds. At its peak in 1998, Tiger Management was running USD22billion in assets. In 2000, Robertson decided to take a step back and return money to external investors. Tiger Management LLC took the form that continues to this day, primarily as an investor and seeder of other hedge funds. Gill Caffray re-joined Tiger Management LLC as chief investment officer in 2011. In addition to Caffray, Robertson’s son, Alex Robertson, became president and COO of Tiger Management LLC this January, succeeding John Townsend, who now serves as a senior adviser to Tiger.
Hedge fund CEO emerges as top Emanuel troubleshooter (ChicagoTribune)
When Chicago aldermen wanted answers on Mayor Rahm Emanuel’s new parking meter deal, they heard the details not only from a City Hall lawyer and administrator but from a rich and influential businessman who has no official city job at all. Michael Sacks, the leader of a Chicago hedge fund firm and a close friend of Mayor Rahm Emanuel’s, had been the closer on the deal, a primary example of how he has come to float between the worlds of business and government as he does Emanuel’s bidding.People tied to Sacks’ Grosvenor Capital Management firm donated nearly $450,000 to help get Emanuel elected, including $100,000 from Sacks personally. He has paid for sports tickets, meals and transportation for his friend since then, though neither man will detail the gifts.
Lender to provide $US5.2bil for Carl Icahn’s Dell bid (TheStar)
Jefferies & Co will provide US$5.2bil in term loans to back Carl Icahn’s bid for computer manufacturer Dell Inc. (NASDAQ:DELL), sources told Thomson Reuters LPC. The funding will be launched today at a 4:00 pm lender call that the billionaire investor is expected to join, the sources said. The US$5.2bil is split between a US$2.2bil six-year term loan B-1 and a US$3bil three-year term loan B-2. The six-year tranche will have standard 1% amortisation, while the shorter-dated tranche amortizes at 10 %, they said. Icahn declined to comment on details of the term loans on Friday.
