John Paulson, the billionaire hedge fund manager, will be forever known on Wall Street as the man who made nearly billions shorting subprime mortgages. But on Monday night at the United States Open men’s singles final, DealBook witnessed Mr. Paulson do something that, while not nearly as remunerative, was almost as impressive: He turned his necktie into an ascot…As the match wore on into the night, the temperatures dropped into the 50s and spectators grappled with how to stay warm.
HazelTree Appoints Tyler Gowen as Managing Director (MarketWatch)
HazelTree, a leading provider of Treasury, Portfolio and Risk Management services for alternative investment managers, has announced the appointment of Tyler Gowen to the position of Managing Director, effective immediately. In his new position, Mr. Gowen will lead HazelTree’s sales efforts to provide Treasury, Portfolio Management and Compliance services to a select group of multi-prime hedge funds, enabling them to deliver a fully optimized level of performance to their investors.
SS&C GlobeOp Capital Movement Index shows continuing hedge fund inflows (+1.07%), low outflows in September (Opalesque)
Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index advanced 1.07% in September 2012. “Solid net flows into hedge funds continued in September, taking the cumulative index to a new high yet again. It is especially interesting to note that outflows are unusually low. Redemptions for the month, and for the last quarter, are the lowest we have seen since the Index began in 2006. Investors are showing continued satisfaction with their hedge fund holdings,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies.
Hedge funds up 0.97 per cent in August (HedgeWeek)
The Hennessee Hedge Fund Index increased 0.97 per cent in August and is up 3.82 per cent year-to-date. The S&P 500 gained 1.98 per cent in August (+11.85 per cent YTD), the Dow Jones Industrial Average advanced 0.63 per cent (+7.15 per cent YTD), and the Nasdaq Composite Index increased 4.34 per cent (+17.73 per cent YTD). Bonds were also up, as the Barclays Aggregate Bond Index increased 0.07 per cent (+3.86 per cent YTD) and the Barclays High Yield Credit Bond Index increased 1.17 per cent (+10.58 per cent YTD).
Hedge funds moving more assets into prime custody accounts with active management (HedgeFundsReview)
A move to separate custody accounts since the financial crisis has turned into a major trend with hedge funds now placing a growing portion of their unencumbered assets with prime custodians. Hedge fund assets available for prime custody have risen 40% since 2010 to $684 billion at the end of August, representing a quarter of all assets under management. The increase in assets parked with custodians is a result of increasing AUM in general coupled with reduced reliance on prime brokers for financing, according to a study* by BNY Mellon.
Asian hedge funds need to rise to corporate governance challenge (TheAsset)
The topic of fund governance is moving quickly to the top of the agenda for investors in hedge funds. Institutional investors, now representing over 60% of the global hedge fund asset base, are in the driving seat when it comes to governance standards in alternative investment funds. In the wake of the 2008 financial crisis, they are asking managers to provide evidence that independent directors have been appointed to offshore fund boards, and that these directors are truly independent.
Eurekahedge: Hedge funds up 0.47% in August as market sentiment remained optimistic (+3% YTD) (Opalesque)
Hedge funds posted another month of positive returns for August as the Eurekahedge Hedge Fund Index gained 0.47%1 during the month. Market sentiment was optimistic for most of the month, with prospects for QE3 increasing, positive signals from the Euro zone and stronger US economic data. The MSCI World Index was up by 1.64%2 in August.
HedgeServ Appointed By Portman Square Capital To Provide Comprehensive Fund Administration Services (PRNewswire)
HedgeServ, an independent global fund administrator, today announces that it has been selected by Portman Square Capital, a London-based international investment management firm, to provide comprehensive front, middle and back office services for its multi-strategy relative value hedge fund, which is scheduled to launch this autumn. Mike Martin, CEO of HedgeServ (UK), commented: “We pride ourselves on providing a new standard for fund administration through our superior client service, highly-customizable technology, and a keen understanding of global investment markets. We’re delighted to be adding a client of Portman Square Capital’s calibre to our international hedge fund client base and look forward to providing services to the exacting standards that will be so important to their business success.”
Investors Turn Sour On Hedge Funds As Performance Disappoints – Data (WealthBriefing)
Investors in hedge funds pulled $7.4 billion from the world’s hedge fund industry in July, equating to 0.4 per cent of all assets in this sector, adding to $4.2 billion of outflows in June, figures show. Based on data from 3,119 funds, the TrimTabs/BarclayHedge Hedge Fund Flow Report estimated that industry assets stood at $1.87 trillion in July, down by 23.2 per cent from their June 2008 peak of $2.4 trillion.
How the Future Fund found agility (Top1000Funds)
Using a fund of funds enabled the Future Fund to build a large exposure to hedge funds quickly during the global financial crisis, chief investment officer of the Future Fund, David Neal says. The Future Fund, which uses a combination of fund of funds and direct hedge fund investments, decided it did not have the breadth of skill and research to entirely invest directly.
Canada’s Telus wins key legal fight against U.S. hedge fund (Reuters)
Canadian telecommunications provider Telus Corp said a court has ruled that its largest investor, hedge fund Mason Capital Management LLC, cannot hold a meeting of its shareholders to consider a proposal that could have thwarted the company’s share consolidation plan. The U.S. hedge fund is locked in a bitter dispute with Telus over the Vancouver-based company’s revived plan to consolidate its voting and non-voting stock on a one-for-one basis.
UK politicians gain from privatising National Health Service (WSWS)
Social Investigations, an independent news blog offering research on political matters of social interest, has compiled an extensive list of British MPs and members of the House of Lords who are set to gain from the ongoing privatisation of the National Health Service. …Hedge fund boss John Nash, chairman of Care UK, has over the past five years donated £203,500 to the Conservative Party. Back in 2009, it was a donation by Nash of £21,000 that helped fund Andrew Lansley’s “personal office”—from 2010 until this week, health secretary in the Conservative/Liberal Democrat coalition.
Hedge funds extend summer gains on euro optimism (HedgeWeek)
Hedge funds posted gains for the third consecutive month in August, as the Euro advanced on optimism for a resolution of the European sovereign debt crisis. The HFRI Fund Weighted Composite Index posted a gain of 0.8 per cent for the month, with leadership across equity hedge, event driven and relative value strategies, with each of these also posting their third consecutive monthly gain, according to HFR.
SEI Selected by C8 Investments to Provide Hedge Fund Operations Outsourcing (MarketWire)
SEI Investments Company (NASDAQ:SEIC) today announced that it has been selected by C8 Investments to provide operational outsourcing services for the firm’s recently launched hedge fund. Created by a team of proven industry veterans, C8 sought an outsourcing partner with the ability to support automated trading and provide daily reconciliation to support and scale with the firm’s systematic trading strategies. This is the latest in a series of outsourcing wins for SEI as more investment managers seek platform providers that can afford them greater control and oversight of their assets along with the transparency and support to make better decisions and mitigate risk while enhancing the investor experience.
Investor Targets MBIA Over $5B Restructuring Transfer (Law360)
Mortgage-backed securities investor CQS ABS Master Fund Ltd. hit MBIA Inc. with a lawsuit Monday challenging its transfer of $5 billion from its struggling insurance unit as part of a 2009 restructuring, saying MBIA Insurance Corp. policyholders were hung out to dry. CQS’ allegations, filed in New York federal court, are similar to those brought by hedge fund Aurelius Capital Management Ltd., which settled with the bond insurer in April. CQS accuses MBIA of ditching its insurance arm in an attempt to protect itself against the…
Consultant may review boatyard plan (StamfordAdvocate)
As city officials begin considering a plan to make way for a hedge fund headquarters along Stamford’s waterfront, the Pavia administration has decided to hire a consultant to help land-use officials assess a proposal to relocate a popular South End boatyard. Norman Cole, the land-use bureau chief, told Zoning Board members Monday night he was reaching out to potential consultants who could assess the feasibility of building a boatyard on a 3.5-acre site at 205 Magee Ave.
Gundlach Considers Stock Funds to Expand DoubleLine’s Mix (Bloomberg)
Jeffrey Gundlach, the top- performing bond manager who built DoubleLine Capital LP into a $40 billion fixed-income shop since he co-founded the firm less than three years ago, said he may add stock funds to the lineup. “I like the way equities are out of favor and I like doing things when they’re unpopular,” Gundlach said yesterday in a telephone interview after a presentation discussing his views on the markets and the economy. “Equities are a superior investment to bonds for an inflation hedge and I like the ability to diversify and broaden the firm.”
Two Harbors Investment Corp. (TWO) Appoints July Hugen as Director, Investor Relations (StreetInsider)
Two Harbors Investment Corp (NYSE:TWO) announced the appointment of July Hugen as Director, Investor Relations. In this role, Ms. Hugen will have primary responsibility for the company’s investor relations and financial communications programs. Prior to joining Two Harbors, Ms. Hugen served in marketing and investor relations at Pine River Capital Management where she was responsible for building and maintaining relationships with hedge fund investors managing diverse asset portfolios including pensions, foundations, family offices and hedge fund of funds. Prior to Pine River Capital, Ms. Hugen was an equity research analyst at Piper Jaffray in Minneapolis covering several sectors including building products, distribution companies and specialty pharmaceuticals. Earlier at Piper, she was a research associate covering hardlines retail and distribution companies.
York Capital’s Flagship Hedge Fund up 3% in August (ValueWalk)
James Dinan’s York Capital Management has produced 14% CAGR returns, since its foundation in 1991. The three basic investment hedge funds are Diversified, Concentrated and UCITS. As of August 2012, York Capital Management manages a total of 15.31 billion. The fund’s top five holdings are in Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), makes up 10 percent of the portfolio, Goodrich Corporation (NYSE:GR), 5.8 percent, Hertz Global Holdings, Inc. (NYSE:HTZ) 4.0 percent , Tyco International Ltd. (NYSE:TYC) 3.9 percent, United Rentals Inc (NYSE:URI) 3.6 percent of the portfolio.
HF Manager Gets Greenlight for Sports Arena (HedgeFund)
San Francisco hedge fund manager Chris Hansen has reached an agreement with the city of Seattle to build an arena for professional basketball and hockey teams. The news outlet Bellevue Reporter reported that the Seattle City Council announced Tuesday at a press conference that under the agreement, Hansen and his firm will provide “additional protection” to the city if the arena’s revenue do not meet financial benchmarks. Hansen also consented to a personal annual audit and guaranteed debt payments on the arena.
Pivotal Investments shuts down (IPE)
Hong Kong-based hedge fund Pivotal Investments has closed and is returning capital to investors. The fund was founded by former Evolution Capital management executives who are now going their separate ways. Brian Yeh will join Chinarock, part of the Farallon Group, and Michael Sun will trade his own money. Other employees include COO Macy Chu and Vice President Jonathan Leong, and their next destinations are not known.
Aspect Profit Soars As Returns, Assets Rise (Finalternatives)
The “A” and “L” in Man Group’s flagship AHL strategy are doing much better on their own than is their former employer. Aspect Capital, set up by Michael Adam and Martin Lueck, saw its pre-tax profits triple last year, according to a regulatory filing. The London-based quantitative hedge fund earned £22.3 million in 2011 on £86.6 million in fee income, up 55% from 2010.
Legg Mason CEO Leaving Firm (HedgeFund)
The chief executive of asset management firm Legg Mason Global Asset Management is reportedly resigning next month. A Reuters article said Mark Fetting, who has been with Maryland-based Legg Mason since 2008, is leaving the firm effective Oct. 1 following 19 consecutive quarters with investor redemptions.
Baupost hedge fund files hot put-back complaint vs Bear Stearns (ThomsonReuters)
In July, not long after The Economist dubbed its revered founder Seth Klarman “The Oracle of Boston,” the hedge fund Baupost abruptly dropped out of the litigation challenging Bank of America’s proposed $8.5 billion settlement with investors in Countrywide mortgage-backed securities. Baupost also sold off at least some of its Countrywide notes, signaling that after battling fruitlessly to get Countrywide and BofA to buy back allegedly deficient underlying loans, the hedge fund had decided to cut its MBS losses and run.
Connecticut Hedge Fund Secures Pension Investments (HedgeFund)
Hedge fund firm Graham Capital Management has received a slew of allocations from pension funds. HFMWeek reported that the Houston Municipal Employees’ Pension System, New Mexico Public Employees Retirement Association and the Texas County & District Retirement System have committed $5 million, $11.3 billion and $175 million, respectively, to Connecticut-based Graham Capital.
Odey’s McCoy Returns To Standard Life (Finalternatives)
Odey Asset Management has lost one of its staffers to his old employer. Wesley McCoy has rejoined Standard Life Investments, the firm he left four years ago after nearly a decade. McCoy most recently worked on Odey’s global multi-asset hedge fund in the U.K., although his hiatus from SLI began with a stint at the Microloan Foundation and included time with Standard Bank Africa.
Marathon Asset Management Chooses SimCorp’s Dimension (WatersTechnology)
The investment management services provider says Marathon, a credit strategies specialist, has implemented its middle-office platform. Replacing a number of legacy systems, the new platform will provide additional functionality and help Marathon consolidate its trade processing, fund accounting, and reporting across both its long-only and hedge fund portfolios. It will also enable greater interaction with systems firm-wide.
KKR-Prisma Deal Worries 2 Pensions (WSJ)
Two public pension funds have expressed concerns that KKR & Co.’s looming takeover of Prisma Capital Partners LP might hurt the asset manager’s returns. The jitters aren’t likely to derail the acquisition by private-equity firm KKR, which agreed in June to pay an undisclosed amount for Prisma. KKR is adding the New York-based firm, which invests client money in hedge funds and oversees roughly $8 billion, as part of a larger push to diversify and boost assets under management. On Tuesday, Prisma co-founder Girish Reddy said most of his firm’s investors were comfortable with the deal. “We’ve got new mandates, …
HEDGE FUND MANAGER: This Dress Would Be Appropriate For The Office (BusinessInsider)
Hedge fund manager Richard Perry, the founder of Perry Partners, attended his wife Lisa’s Mercedes Benz Fashion Week show where she presented her 2013 spring collection. During the fashion show, Bloomberg News’ Amanda Gordon asked the hedge fund titan to share his thoughts on what piece from his wife’s collection would be office appropriate.
Centaurus’ Arnold funds obesity research (Absolutereturn-Alpha)
In May, John Arnold simply said he would “pursue other interests” in a letter announcing the closing of his highly successful energy hedge fund firm Centaurus Advisors. Those interests are now coming into focus through the 38-year-old’s philanthropic foundation and a donation announced today to fund novel obesity research. The $900 million Laura and John Arnold Foundation is the lead backer for The Nutrition Science Initiative (NuSI), which is “dedicated to dramatically reducing the economic and social burden of obesity and obesity-related diseases by significantly improving nutrition science,” according to a press release. Founded by surgeon and former McKinsey & Co. consultant Peter Attia and science journalist Gary Taubes, NuSI has a deceptively simple goal: to determine what people should eat to be healthy.
Chesapeake to Sell Assets for $6.9 Billion (NYTimes)
The Chesapeake Energy Corporation said on Wednesday that it had agreed to a series of asset sales, including the majority of its holdings in the Permian Basin. The move will raise $6.9 billion as it seeks to repay some of its considerable debt burden. The sales are part of the drilling company’s efforts to repay money borrowed to cover enormous expected revenue shortfalls. This year, the company has reached agreements to sell $11.6 billion worth of properties. It is aiming to raise a total of about $13 billion to $14 billion.
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