New Jersey hedge fund manager Tepper says U.S. on ‘verge of greatness’ (NJ)
David Tepper, the hedge-fund manager who runs the $15 billion Appaloosa Management LP, said he’s bullish on U.S. stocks as the economy is set to grow by as much as 3 percent this year. …Tepper said investors should own stocks because they’re historically inexpensive, U.S. companies have little debt, interest rates are low, credit is fully valued and the major risks to the global economy, such as a debt crisis in Europe, have diminished. Short Hills, New Jersey-based Appaloosa, which celebrates its 20th anniversary this year, returned 30 percent in 2012, he said.
Wesley Wang was unemployed and at home in Berkeley, Calif., about four years after being fired as a junior analyst for an affiliate of hedge fund giant SAC Capital when he got a surprise visit from the FBI. The Taiwan native listened as an agent told him he was the subject of an insider-trading investigation, outlined what investigators knew about his activities and offered a chance to cooperate with prosecutors. Wang said he understood, and asked for time to check with a lawyer. Within weeks of that January 2009 visit, Wang, now 39, was secretly helping federal prosecutors gather evidence against other suspects targeted in a three-year crackdown on Wall Street insider trading that has so far produced more than 70 arrests, convictions or guilty pleas.
Jesse Redmond starts hedge fund research and media company named Next Alternatives (Opalesque)
Jesse Redmond, co-founder of Evolved Alpha and Alpha Titans, has unveiled a hedge fund research and media company named Next Alternatives (Next). The business leverages skills developed during Redmond’s fifteen-year investment management career with his passions for media and technology. The initial offering is a hedge fund research service coined On Demand Due Diligence™. Next will evolve into a diversified research and media business in the coming quarters.
HFRU Hedge Fund Composite Index gains 1.11% MTD through January 21 (Opalesque)
Global equity markets posted gains to begin 2013 as investors responded to near term settlement of many of the issues surrounding the US fiscal cliff on the final trading day of 2012. Equity gains were broad based across regions, with leadership from the US, UK, Italy, Spain, Switzerland and Argentina, while Energy & Oil Service, Technology & Biotechnology s led gains across sectors. US treasury yields rose across all maturities as the 30 year yield rose above 3 percent; Germany, France & UK also saw rising yields, although yields declined across Spain, Japan & Italy. The US dollar gained against the Japanese Yen, Euro & Swiss Franc, while falling against the Euro. Energy & Metals commodities rose led by Oil & Platinum, while gains in Agricultural commodities were let by Coffee, Corn & Cocoa.
Hedge fund managers at conference forecast stock gains (Reuters)
After years of favoring fixed income, investors are ready to put their money back into equities and they might be rewarded with strong returns, especially in U.S. stocks, hedge fund managers and investors said at a conference on Tuesday. “We have seen outflows from government bonds and the next big migration is going to be into equities,” said Tim Garry, a portfolio manager at $3.7 billion Passport Capital.
SAC Thinking the Unthinkable (DealBreaker)
The once-proud firm, which could blithely charge three-and-50 with a dismissive shrug of the shoulders or a penetrating, “you’ve got a lot of fucking nerve to question me” glare, has suffered indignities ranging from a snub from Citigroup (Citigroup!) to begging and coughing up extra cash to hang on to employees to pleading with clients to stick with it through the hard times, even as it continues to post double-digit returns. Now, it’s having Japanese banks turn up their noses at a once-in-a-lifetime, too-good-to-be-true opportunity to get a little piece of the Big Guy’s pie. …Steve Cohen does not pay for others to dine and golf with him or his minions! You pay, out of what’s left of your half of the profits after he gets his 3% management fee!
Optimism grows over Asia’s recovering hedge fund sector (AsianInvestor)
Favourable recent Asian hedge fund performance has spurred hopes of a better year ahead as the industry contends with a drop in assets on the back of disappointing 2011 returns. The Eurekahedge Asia ex-Japan Hedge Fund Index gained 11.5% in 2012, falling slightly behind MSCI Asia ex-Japan’s 19.4% rise. However, it represents a huge improvement from 2011, when Asian hedge funds delivered an average loss of -12%.
