A Trio of Stock Pickers Find Success in Credit (InstitutionalInvestorsAlpha)
While many hedge fund managers have been trying to determine whether there’s a bubble among high-flying technology and biotechnology stocks and are struggling to find the next group of winners amid a generally volatile market, a handful of hedge funds usually associated with stocks are finding success in credit markets. According to first-quarter reports recently sent to clients, at least three well-known large hedge fund firms said gains in credit markets played a large role in first-quarter performance. They include Leon Cooperman’s Omega Advisors, Eric Mindich’s Eton Park Capital Management and Daniel Loeb’s Third Point, all based in New York.
Investors add to hedge fund holdings in May: SS&C (Reuters)
Investors added more cash to hedge funds than they redeemed in May, even though performance dipped during April, new data showed on Monday. The SS&C GlobeOp Capital Movement Index, which calculates monthly hedge fund subscriptions minus redemptions, rose 0.94 points during May to 149.5 points, just shy of its record high of 150.77 points in September 2013. During April, however, the SS&C GlobeOp Hedge Fund Performance Index showed the performance of the funds administered by the group on its platform fell 0.59 percent to bring year-to-date gains for the index to 1.97 percent.
Why Ackman Is Right About Fannie Mae And Freddie Mac (BidnessEtc)
Fannie Mae (FNMA) and Freddie Mac (FMCC) were the publicly-traded companies that were hit the most during the financial crisis of 2008. The value of these government sponsored enterprises (GSEs) tanked over 90% after the housing market crashed. Shares of the mortgage giants were trading at under 30 cents apiece in the first quarter of 2013, but have since rallied strongly. In the past year, Freddie Mac and Fannie Mae stock has soared 346% and 361%, respectively. Bill Ackman, who runs the $15 billion hedge fund, Pershing Square Capital Management LP, is the largest private investor in Freddie Mac and Fannie Mae. He believes that Fannie Mae has great upside potential, and could be worth between $23 and $47 in the future…
Financial Fads-Hedge Funds Anyone? (Forbes)
Fads are nothing new—they come and they go. We’re drawn to THE new trendy and hot restaurant, bar, travel destination, fashion—whatever is of the moment. And this extends to the right place to invest our money. Financial fads have included tech stocks, newly emerging markets, gold and commodities—and now the topic du jour is “alternative investments”, i.e. hedge funds. It all sounds so mysterious and sexy and those promoting this methodology make sure to keep the aura alive. Let’s face it, there is an allure to being “in”, or at least feeling in.
Hedge funds post negative results (BenefitsCanada)
Hedge funds posted their second consecutive month of negative returns in April with the Eurekahedge Hedge Fund Index down 0.15% as global markets continued to falter amid a sluggish start to the year. On a year-to-date basis, hedge funds are up 0.78%, slightly ahead of the MSCI World Index which has returned 0.75% in the first four months of the year. Other key findings show: Global hedge funds were up 0.78% year to date as North American, European and Latin American managers lead with gains of 2.16%, 1.03% and 0.38% respectively.
Jim Rogers: Forget U.S. markets, I’m buying Chinese and Russian stocks (Yahoo)
This week’s optimism about capital market reforms in China seemed to outweigh any investor concern stemming from the referendum on independence held in two regions of Ukraine. Enthusiasm around China came after the State Council reiterated its desire to liberalize finance in areas such as IPOs and limits on foreign investment — even though some of these measures were originally announced months ago. Jim Rogers, famed commodities investor and author of Street Smarts: Adventures on the Road and in the Markets, lives in Singapore and is a prominent bull on China’s long-term prospects.
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