Sears Says Lampert to Take Over as CEO (Bloomberg)
Sears Holdings Corporation (NASDAQ:SHLD) said Lou D’Ambrosio is stepping down as chief executive officer and Chairman Edward Lampert will take over the job as the billionaire hedge fund manager works to revive the retailer. The sudden departure of D’Ambrosio, 48, was prompted by family health matters, the Hoffman Estates, Illinois-based company said yesterday in a statement. Lampert, 50, will take over at the end of the company’s fiscal year on Feb. 2. Lampert becomes Sears’s fifth CEO since he merged the retailer and Kmart in March 2005 as the more than century-old department-store chain works to emerge from hard times. Sales have slid for five straight years and the company posted a $3.14 billion loss in its last fiscal year amid competition from Wal- Mart Stores Inc. (WMT) and Home Depot Inc. (HD)
Argentina is paying $800,000 to rent a jet for President Cristina Kirchner so she can avoid the threat of having her official plane seized by defaulted bondholders during a tour of Asia. The move follows a legal battle with Ghana after the African nation detained an Argentine naval ship for 10 weeks as part of a dispute with investors holding bonds from the country’s 2001 default, led by hedge fund manager Paul Singer. Meanwhile, Singer’s Elliott Management hedge fund said a French regulator is investigating possible insider trading by its UK unit in Autoroutes Paris-Rhin-Rhone SA in 2010. Elliott received a “letter of grievance” from Autorité des Marches Financiers that said the hedge fund may have purchased APRR shares based on material, nonpublic information.
London Quantitative Hedge Funds Report Second Year of Losses (SFGate)
Hedge funds that use computers to follow trends lost money for a second straight year in 2012 as political debates over the U.S. fiscal cliff and Europe’s sovereign-debt crisis roiled markets. The Newedge CTA Trend Sub-Index, which tracks the performance of the largest computer-driven, or quant funds, fell 3.4 percent last year after a 7.9 percent decline in 2011. David Harding’s $10 billion Winton Futures Fund Ltd. slid 3.5 percent in 2012, its second annual decline since opening in 1997, investors in the pool said. Man Group Plc’s $17 billion AHL Diversified fund fell 2.1 percent, while BlueCrest Capital Management’s $14 billion trend-following fund gained 0.02 percent, said the investors, who asked not to be identified because the figures are private.
Hedge fund industry veteran Groome joins Highwater (HedgeWeek)
Todd Groome, former chairman of the Alternative Investment Management Association (AIMA), has joined the Highwater Group. Groome (pictured) has 28 years of experience in international financial markets, working in both public and private sectors and across geographies. Prior to his four years (2009 – 2012) as AIMA chairman, where he represented the hedge fund industry globally, Groome was an adviser on financial markets to the International Monetary Fund (IMF) for over five years, was an investment banker for more than 13 years, and practiced law in Washington DC for five years.
Fiscal cliff aversion creates final 2012 performance boost for hedge funds (Opalesque)
Commenting on the December 2012 performance of hedge funds, Hedge Fund Research found that the last minute recovery in US equity markets, literally on the final trading day of 2012, in anticipation of legislation to avert the US fiscal cliff, created gains which offset losses from earlier in December and pushed most US equity indices into positive territory for the month. December gains were strong in the Financials and Technology sectors, with small cap equities also posting strong returns. Regionally, equities across Asia, Europe & Emerging Markets posted gains led by China, Japan, Russia and Argentina. In the US, yields rose across most maturities in anticipation of the fiscal cliff resolution, while high yield credit continued to tighten.
US hedge fund places US$500m bet on Singapore F&N takeover war (IFRE)
Davidson Kempner Capital Management LLC has bought a good chunk of F&N shares since a consortium led by Indonesian tycoon Stephen Riady’s Overseas Union Enterprise launched a S$13.1bn (US$10.7bn) counter-bid for the Singapore firm in November. That offer surpassed an earlier one made by Thai beer baron Charoen Sirivadhanabhakdi. Davidson Kempner’s role in the F&N saga is unusual for its size and because one of the bidders, in addition to attempting to buy out the company, is trying to increase its shareholding. At least one instance has emerged in which the Thai group has offered to buy F&N shares from existing shareholders and has been rebuffed – fuelling investor expectations of higher bids and buoying F&N’s stock.
Deptford leaves Smith & Williamson as Boucher rejoins (FTAdviser)
Mark Boucher is set to return to Smith & Williamson Investment Management to take up the role of head of UK equities. Mr Boucher’s arrival at the company later this month has meant that Charles Deptford has left Smith & Williamson. He had co-managed the Enterprise fund, the Enterprise Trust, the UK Equity Growth fund and the UK Equity Income fund. …David Cobb, head of investment management and banking at Smith & Williamson, said: “Mark Boucher is a very experienced fund manager with an excellent track record and this, combined with his knowledge and understanding of Smith & Williamson, makes him an important hire for us.”
Dartmouth Controversy Reflects Quandary for Endowments (NYTimes)
By the numbers, the endowment at Dartmouth had a banner year. The $3.49 billion fund returned 5.8 percent for the 12 months that ended in June — the best in the Ivy League. But the performance has been clouded by controversy. Last year, an anonymous letter signed by “the friends of Eleazar Wheelock,” referring to the university’s founder, asked New Hampshire state officials to investigate the endowment over potential conflicts of interest raised by trustee-related investments.
IGT says hedge fund to nominate ex-CEO, others to board (Reuters)
International Gaming Technology said on Monday its former chief executive and a hedge fund plan to nominate four people for the slot machine maker’s board of directors. Charles Mathewson, working with Ader Investment Management LP, has submitted a statement of intent to nominate the four for the eight-person board, IGT said. Mathewson, who had been a board member from 1985 through 2003 and stepped down as CEO in 2000, is one of the nominees.
Asking Hedge Funds to Turn Themselves In (NYTimes)
Hedge funds had long operated under the regulatory radar, with few reporting obligations and a well-deserved reputation for secrecy. Now, the government is weighing whether to require them to report any suspicious transactions, like insider information or manipulation of stock prices. Reuters reported that the Financial Crimes Enforcement Network, an office in the Treasury Department known as FinCEN, is considering a rule that would require hedge funds to file reports about possible wrongdoing in their operations. This would effectively require hedge funds to turn themselves in and invite an investigation of their investment activities.
Texas County & District picks more credit hedge funds (PIOnline)
Texas County & District Retirement System invested $200 million each in new credit-oriented hedge funds Brevan Howard Credit Catalysts Fund LP and BlueCrest Capital LP. The investments were made on Jan. 1, according to a transaction report on the $17.6 billion retirement system’s website. BlueCrest Capital Management is a new manager for the Austin-based municipal retirement system. TCDRS previously invested a total of $120 million in Brevan Howard, the flagship global macro hedge fund managed by Brevan Howard Asset Management.
88 Generation leaders meet billionaire George Soros (Mizzima)
Four representatives of the 88 Generation Students group met with Hungarian-born billionaire George Soros on Tuesday morning at the Chatrium Hotel where they discussed foreign investment and the need for transparency in business. “We are more interested in conducting detailed negotiations rather than just asking [Mr. Soros] what he can give us,” said Pyone Cho who was joined by Min Zeya, Htay Kywe and Mya Aye.
Economist says country has yet to wake up to full extent of fiscal nightmare (WND)
Last night the House of Representatives voted 257-167 to pass the fiscal cliff bill. Many have pointed out that president Obama has come out the winner, while the Republicans who signed Grover Norquist’s no-tax- increase pledge have been the biggest losers. But in a new op-ed for The Financial Times, Nouriel Roubini writes that the U.S. has been let down by its leaders and that they “dysfunctional nature” of the country’s political system means another crisis isn’t far off. He also says the country has yet to wake up to the “full extent of its fiscal nightmare”.
Is Icahn Dumping Netflix (NFLX)? (StreetInsider)
Netflix, Inc. (NASDAQ:NFLX) is off the highs of the day on rumors Carl Icahn may have liquidated his position in the name. After trading up as much as 5.8 percent earlier, shares are now up just 1.7 percent. Mr. Icahn’s latest filing showed he owned 5,541,066 shares, or 9.98 percent of the shares outstanding. He first disclosed the position in late-October, with shares trading 40 percent lower at that point.
London Quantitative Hedge Funds Report Losses Again (BusinessWeek)
Hedge funds that use computers to follow trends lost money for a second straight year in 2012 as political debates over the U.S. fiscal cliff and Europe’s sovereign-debt crisis roiled markets. The Newedge CTA Trend Sub-Index, which tracks the performance of the largest computer-driven, or quant funds, fell 3.4 percent last year after a 7.9 percent decline in 2011. David Harding’s $10 billion Winton Futures Fund Ltd. slid 3.5 percent in 2012, its second annual decline since opening in 1997, investors in the pool said.
Man Group Appoints Executives at Its GLG Division (NYTimes)
The Man Group, the world’s largest publicly traded hedge fund management firm, announced several appointments in its GLG division on Tuesday. The announcement follows the resignation of the London-based hedge fund’s chief executive, Peter Clarke, last month amid continuing outflows of investor funds because of the firm’s recent poor performance. Man Group said that Sudi Mariappa, who joined the hedge fund from the giant bond fund manager Pimco last October, would lead GLG’s fixed income unit, while Jamil Baz, GLG’s current chief investment strategist, would oversee the division’s macro strategy.
New CEO Shuffles the Deck at Citi (WSJ)
Citigroup Inc. (NYSE:C) Chief Executive Michael Corbat moved on Monday to cement his grip on the giant lender, outlining a management shuffle in which two top allies of former CEO Vikram Pandit will leave or have duties reduced. Lewis B. Kaden, a Citigroup vice chairman since 2005 and a close adviser to Mr. Pandit, will retire from the New York company in coming weeks. Don Callahan, another of Mr. Pandit’s longtime colleagues, will see his duties as head of technology and operations diminished. Two other longtime Citigroup executives, James Forese and Manuel Medina-Mora, will see their roles expanded and become co-presidents. …
SEC Names Geoffrey Aronow as General Counsel (SEC)
The Securities and Exchange Commission today announced that Chairman Elisse B. Walter has appointed Geoffrey F. Aronow as the agency’s General Counsel. He will begin his new role later this month. Mr. Aronow comes to the SEC from the law firm of Bingham McCutchen LLP, where he is a partner in the Washington D.C. office. Mr. Aronow has prior federal government leadership experience as the Director of the Division of Enforcement at the Commodity Futures Trading Commission (CFTC) for nearly four years.
