Hedge Fund Legend Joel Greenblatt – Writing A Bigger Book (GuruFocus)
Every year, when Joel Greenblatt (Trades, Portfolio) kicks off his value and special-situation investing class at Columbia Business School, he makes his students a guarantee. “If they are good at valuing businesses, the market will agree with them, typically within two or three years,” says Greenblatt, who has been an adjunct professor since 1996. While he can’t make any such guarantees to investors, his track record lends validity to this thesis. Using an über-concentrated deep-value approach, the hedge fund he founded in 1985 produced 34% average annual gains, after fees and expenses, for the first decade…
Could the Knicks Be an Activist Play at Madison Square Garden? (WSJ)
Could an activist investor score a sale of the New York Knicks? Hedge fund JAT Capital Management LP filed an activist position in The Madison Square Garden Co (NASDAQ:MSG) +1.64% with the SEC late on Friday night, disclosing it owns a 6.7% stake in the Class A shares. That would be enough to make them a top 3 player in the stock, according to FactSet. JAT, which has never filed an activist position before and therefore isn’t likely to fight a public campaign, doesn’t give any hint at what its thesis is or what it would seek…
Hedge fund crude bets tumble amid surging global supply (LiveMint)
Speculators are the least bullish on the US crude oil prices in 16 months as refinery maintenance weakens demand at a time when Libya and Iraq are swelling global supplies. Futures dropped a fifth consecutive week after money managers reduced net-long positions in West Texas Intermediate, the US benchmark grade, by 14% in the seven days ended 19 August, the Commodity Futures Trading Commission said. Prices sank below $95 on 19 August for the first time in seven months as US air strikes in Iraq helped reverse the advance of Islamic State militants and Kurds work to increase oil shipments.
Accounting Firms Profit From Hedge-Fund Regulation (Finalternatives)
New international hedge fund regulations are proving a headache for the industry—but a boon for accounting firms. The so-called “Big Four” accountancies are ramping up their offerings to hedge funds, helping them navigate complex new rules and regulations on both sides of the Atlantic. In particular, the European Union’s new Alternative Investment Fund Managers’ Directive is driving hedge-fund managers to seek more advice from accountants—and driving those accountants to bolster their hedge-fund teams and services.
UBS Hedge-Fund Distribution Exec. Promoted (Finalternatives)
UBS Wealth Management has placed a hedge-fund distribution specialist at the helm of its whole Asia-Pacific distribution effort. Paul Stefansson was named head of investment fund distribution for the region, Citywire Asia reports. He succeeds René Buehlmann, who was named Asia head of UBS Global Asset Management last month. Stefanson had been a managing director for investment and hedge fund distribution at the firm, which he joined in 2006. He will remain based in Singapore in his new role.
Woman leaves hedge fund to craft career out of rum (CNBC)
No Need to Mimic All Hedge Fund ETF Holdings (ETFTrends)
It is no secret that select hedge fund managers carry with them an aura of glamor and star treatment society often reserves for athletes and entertainers. So much so that some issuers of exchange traded funds have found success with offering investors ETFs that give investors access to some of the most widely held hedge fund equity positions. [A Glamorous Guru ETF] Of course, hedge funds like ETFs as well and with just a few minutes of homework, investors can unearth which ETFs are popular with the hedge fund crowd. That does not mean investors should always mimic to a tee the ETF holdings of hedge funds.
Krom River keeps faith with commodities, bets on luring equity investors (BRecorder)
Commodity hedge fund Krom River is determined to stay the course in uncertain conditions despite a hefty sectoral slide, hoping for fresh inflows from investors fearing a retreat in equities. Commodity funds have been pummelled in recent years as pursuit of the asset class as an alternative investment lost its allure, a sharp contrast to its boom when investors were keen to ride a wave of infrastructure investment in China. Assets under management at Krom River have tumbled over 70 percent since April 2012 to $232 million. Chief Executive Itay Simkin said while commodities were still “unloved”, some investors have shown more interest in the Swiss-based fund, concerned that an equities rally may fizzle.
Hedge Funds Flock to Apple (WSJ)
Hedge funds accumulated positions in Apple Inc. (NASDAQ:AAPL) +0.30% at a rapid clip in the second quarter, as the stock rallied sharply amid strong results and a stock split. Hedge funds purchased $855 million in new positions in the iPhone and iPad maker during the second quarter, the second-highest level of new buying activity among S&P 500 stocks, according to S&P Capital IQ. The amount of new purchases stands in contrast with the first three months of the year, when hedge funds were both buying and selling Apple in droves.
Jeff Vinik proposes office building north of Times Forum (TampaBay)
Tampa Bay Lightning owner Jeff Vinik‘s vision for the Channel District continues to emerge, and it includes hundreds of new white-collar office workers along with tourists and sports fans. The latest piece: a 202,000-square-foot office building that Vinik’s companies propose to build immediately north of the Tampa Bay Times Forum. A rezoning application filed with City Hall last week suggests a tenant for that building could be Syniverse, a fast-growing high-tech firm now based in New Tampa.
Man Group Expands US Hedge Fund Business With Acquisition Of Pine Grove (HedgeCo)
Man Group plc has acquired US-based fund of hedge fund manager Pine Grove Asset Management LLC., which has approximately $1.0 billion in assets under management. The transaction enhances Man Group’s presence in the US and adds to Man Group’s fund of hedge funds business, FRM. Pine Grove will also reinforce FRM’s efforts to offer clients a wide variety of investment opportunities including SEC-registered US 40 Act funds and complementary fund of hedge fund products, the company said in a press release.
Ackman makes $171-million on Burger King wager (TheGlobeAndMail)
Bill Ackman’s two-year bet on Burger King Worldwide Inc (NYSE:BKW) is paying off in a big way as the U.S. fast-food chain soared in trading today. Pershing Square Capital Management LP’s 10.9 per cent stake in Burger King increased in value today by $171-million to about $1.2-billion, according to data compiled by Bloomberg. Ackman helped Burger King go public in 2012 after it merged with Justice Holdings Ltd., a special-purpose acquisition company co– founded by the hedge-fund manager. The stock has more than doubled since September 2012 when Ackman disclosed Pershing Square’s stake.
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