Tepper: Market will survive in spite of Greece (CNBC)
Billionaire hedge fund manager David Tepper told CNBC a Greek debt deal would be “obviously be good for the markets,” but added stocks “could survive even if it goes the other way.” Tepper, the founder and president of Appaloosa Management, said Tuesday: “Stocks could fall 2 percent to 3 percent or maybe 4 percent.” He argued, however, that’s “not a big deal [and] the market will be fine this year.”
Peltz Softens Stance on Splitting DuPont (Reuters)
Activist investor Nelson Peltz’s hedge fund said it was “open-minded” about keeping DuPont together, after agitating for months to break up the chemical conglomerate. Trian Fund Management LP detailed the change in strategy on Wednesday, while urging DuPont shareholders to vote Nelson Peltz and three other nominees to the board. “Trian does not see this election as a referendum on separating the businesses, but rather a referendum on DuPont’s financial performance,” the fund said in a letter to DuPont shareholders.
Woman’s $8.2 Billion Firm Is Off To A Huge Start (CNBC)
The most powerful woman in hedge funds is off to a red-hot start at the helm of her own firm. Leda Braga—who launched Systematica Investments in January after years under prominent European hedge fund firm BlueCrest Capital Management—steered her $7.6 billion flagship BlueTrend fund to a 9.52 percent gain net of fees last month, according to a private performance update sent to investors.
Hedge Fund Star Gives Warning for Road Ahead (CNBC)
Kenneth Griffin, whose Citadel hedge funds manage $24 billion in assets, said in a letter to investors Monday that he is approaching 2015 with “vigilance” in light of tumultuous market circumstances. “Market conditions remain uncertain,” wrote Griffin, founder and CEO of the Chicago-based money manager, in a letter dated Feb. 9. “A half-decade of unprecedented government intervention and monetary stimulus continues to impact the global financial markets.” “We continue to challenge our assumptions [and] assess our portfolio’s risk,” Griffin added in the letter.
Allergan CEO: Bill Ackman Battle Was All-Consuming (CNBC)
Allergan Chairman and CEO David Pyott told CNBC on Tuesday that dealing with “raiders” like hedge fund titan Bill Ackman and Valeant Pharmaceuticals was a full-time job. Ackman had teamed-up with Valeant to help the health care company try to buy the Botox maker. Their hostile pursuit, announced in April, was thwarted by Actavis, which agreed in November to buy Allergan in a $66 billion deal.
Cygnus Co-founder Ventosa Readies Utilities and Energy Hedge Fund (Reuters)
Hedge fund veteran Alvaro Ventosa is preparing to launch his own fund, aiming to bet on rising and falling stocks in the utilities, energy and infrastructure sectors. Ventosa, who left Cygnus Asset Management in 2011 after being one of its founding partners, is setting up a firm dubbed Alvento Capital, having managed a similar fund for carbon and energy investment firm and adviser CF Partners until last year. Alvento, to be based in London, will launch the hedge fund in June with start-up capital of up to $200 million, Ventosa told Reuters in an e-mail, adding the fund had a capacity to manage $700 million.
Hedge Funds Exit Housing Securities as Prices Rise (Bloomberg)
Hedge funds that profited on residential mortgage debt after the financial crisis such as Pine River Capital Management and Canyon Partners are trimming their bets as prices rise. Gorelick Brothers Capital is also exiting investments in both uninsured and government-backed home loan securities. The firm is seeking higher returns by raising a private equity fund to buy single-family rental houses, said Rael Gorelick, a co-founder of the firm. Hedge funds that took a risk on distressed mortgage debt after the 2008 housing crash have had robust returns. Canyon Partners made $7 billion on non-agency securities in the decade before and after the financial crisis.
Man GLG Macro Hedge Fund Lost 9 pct in Jan, To Shut – Sources (Reuters)
A macro hedge fund managed by the GLG unit of Man Group lost 9 percent in January and is closing, sources said. The performance contrasts with gains in the group’s hedge funds which use computer programs to drive their investment decisions. The $4.4 billion AHL Diversified fund gained 7.2 percent last month, while the $4 billion AHL Evolution fund returned 7.7 percent, according to data seen by Reuters. The decision follows a torrid month for many macro hedge funds who were caught out by the Swiss franc rise during the month after a surprise decision by the Swiss National Bank to remove a cap on the currency.
