Hedge Funds: More Diverse Than you Thought? (ai-CIO)
The myth of hedge funds being a homogenous group should be dismissed, and investors should recognise their potential as portfolio diversifiers, according to a new report from Commonfund. In its latest whitepaper, the fiduciary manager tasked John Delano, Kristofer Kwait, and Justin Santana with investigating the role of hedge funds today. They found that even in periods where hedge funds underperform the broader market, they should still be considered valuable by investors as a diversifier for their portfolio. The battle for hedge funds to win over hearts and minds will be a long one though. As the report outlined, there’s a number of misconceptions which continue to be believed, reflecting a “backlash against a perceived element of exclusivity”.
Hedge funds play key role in Ontario Teachers’ Pension Plan (Risk)
There is no denying it is a bold move. A former hedge fund manager will soon take over as the head of one of Canada’s largest pension plans. Ron Mock, senior vice-president of fixed income and alternative investments at Ontario Teachers’ Pension Plan (OTPP), will step into the CEO role on January 1, 2014 when Jim Leech retires after 12 years at the helm. Mock, who joined OTPP in 2001 as director of alternative investment, was previously CEO of Phoenix Research and Trading, where he was responsible for all of Phoenix Canada’s fixed income business, including the Phoenix Fixed Income Arbitrage hedge fund which closed in 2000 after losing C$125 million in the US bond market, according to a Ontario Securities Commission settlement document.
Hedge fund billionaire reinvents himself (LeaderPost)
In an open letter this week inviting Russ Girling, CEO of TransCanada Corporation (NYSE:TRP), to a live debate on the merits of the Keystone XL pipeline, California hedge fund billionaire Tom Steyer said he is motivated by uncovering the truth. It’s a noble pursuit. Yet the facts about the pipeline from Alberta to the U.S. Gulf Coast have been in plain sight since its regulatory review in the United States began five years ago. What’s less known is why Steyer, 56, a President Obama fundraiser and selfdescribed “professional pain in the ass” who is reinventing himself as a “cleanenergy philanthropist,” has suddenly gone sour on the oilsands.
Loeb’s Fund Purchases $113.7 Million Stake in Disney (Bloomberg)
Daniel Loeb’s Third Point LLC, the hedge-fund pressing Sony Corporation (ADR) (NYSE:SNE) to sell part of its entertainment business, acquired a $113.7 million stake in The Walt Disney Company (NYSE:DIS), extending his bet on the industry. Third Point held 1.8 million shares of Burbank, California-based The Walt Disney Company (NYSE:DIS) at the end of June, according to a regulatory filing yesterday by the New York-based investor. He also held options to buy 32,000 more, the filing showed. Loeb was buying the stock as he pressed Tokyo-based Sony Corporation (ADR) (NYSE:SNE) to sell as much as 20 percent of its film, TV and music business in an initial public offering.
Trian’s Peltz Buys DuPont Stake as Chemical Maker Weighs Options (MoneyNews)
Trian Fund Management LP, the hedge fund co-founded by activist investor Nelson Peltz, acquired a 0.6 percent stake in E I Du Pont De Nemours And Co (NYSE:DD) as the chemical maker considers options for one of its more volatile businesses. Trian held 5.78 million shares of Wilmington, Delaware-based E I Du Pont De Nemours And Co (NYSE:DD) as of June 30, the New York-based fund said in a regulatory filing Wednesday. The shares give Trian a stake worth about $343 million at Wednesday’s closing price. E I Du Pont De Nemours And Co (NYSE:DD) is the largest U.S. chemical maker by market capitalization, according to data compiled by Bloomberg.
Hedge fund takes $595 million stake in chipmaker Micron (IdahoStatesman)
A hedge fund took a $595 million stake in Micron Technology, Inc. (NASDAQ:MU) after the shares surged 57 percent in the first quarter. Baupost Group LLC, the Boston-based hedge-fund firm run by Seth Klarman, bought 41.5 million shares of the Boise memory-chip maker during the three months ended in June, making it the firm’s fourth-biggest stock investment by market value, according to a filing Wednesday with the Securities and Exchange Commission. Micron Technology, Inc. (NASDAQ:MU) last month completed a $2 billion purchase of Elpida Memory Inc. as it seeks to deliver sustainable profits in the volatile market for memory chips used in personal computers and mobile devices. Micron Technology, Inc. (NASDAQ:MU) has reported a net loss in five of its last 10 fiscal years.
