Bernanke’s Hedge Fund Gig ‘Wrong On So Many Levels’: Adami (CNBC)
Former Federal Reserve Chair Ben Bernanke is heading down a well-beaten path: shuffling through the revolving door between Washington’s policy circles and Wall Street’s big money institutions. The $25 billion hedge fund, Citadel Investment Group, in a statement said, “Dr. Bernanke will consult with Citadel teams on developments in monetary policy, financial markets and the global economy.” Adding a note from its founder and CEO Ken Griffin, “He has extraordinary knowledge of the global economy and his insights on monetary policy and the capital markets will be extremely valuable to our team and to our investors.”
Hedge Fund Lansdowne Tunes Into Spotify Stake (Yahoo Finance)
An array of prominent global investors including the London-based hedge fund Lansdowne Partners are in advanced talks to acquire multimillion pound stakes in Spotify, the digital music service. Sky News can exclusively reveal the full list of investors who are expected to participate in a $400m (£268m) fundraising that will value Spotify at $8.4bn (£5.6bn). The investors, who are betting that loss-making Spotify can ultimately use its loyal customer base to reap handsome profits, will each buy stakes valued at several tens of millions of dollars, with the largest acquiring up to $100m-worth (£72m) of stock, according to insiders.
Shareholder DC Thomson Backs Alliance Trust’s Fight Against Elliott (Reuters)
Top-10 Alliance Trust investor DC Thomson & Co Ltd said it would vote against activist hedge fund Elliott Advisors‘ resolution to nominate three new directors to the board. Elliott in March launched a campaign to install new directors at the 126-year-old firm, hoping it would kick-start an improved performance by the investment fund. “The Elliott proposals offer board and governance change but, while we welcome open debate, we see nothing in their proposals to persuade us, as long term investors, to give them our backing,” DC Thomson said in a statement.
Canada’s Legacy Oil + Gas Under Fire From Activist Shareholder (Reuters)
Intermediate producer Legacy Oil + Gas formed a special committee on Monday to deal with hedge fund FrontFour Capital‘s move to gain seats on its board, the first major case of shareholder activism in Canada’s oil patch since last year’s sharp drop in crude prices. Calgary-based Legacy, which has assets in the foothills of southern Alberta and light oil operations in the Canadian Bakken region of southern Saskatchewan, came under scrutiny last month after legal documents showed it was backstopping a loan for its chief executive officer, Trent Yanko.
There Are Now More Hedge Funds Than Ever (CNBC)
There are now more hedge funds than ever. Investors have the choice of an estimated 10,149 hedge funds and funds of hedge funds as of March 31, according to new data from industry research firm HFR. That surpasses the previous high of 10,096 set in 2007 before the financial crisis. About 1,040 new funds launched in 2014, a net addition of 176 compared with ones that closed. Total industry assets are $2.94 trillion, another all-time high, despite relatively muted single-digit returns from most hedge funds last year.
Hedge Funds Turn Most Bullish on Oil in 8 Months as Output Slows (Bloomberg)
Hedge funds increased bets on rising oil prices to an eight-month high amid signs U.S. production is slowing. Speculators boosted their net-long position in West Texas Intermediate crude by 9 percent in the seven days ended April 14 to the highest since August, U.S. Commodity Futures Trading Commission data show. Shorts, or bets on falling prices, tumbled to the lowest since February. WTI has rebounded by about 30 percent from a six-year low in March, boosting speculation that crude hit bottom.
Macquarie Said to Start Americas, Quant Hedge Funds This Year (Bloomberg)
Macquarie Group Ltd. plans to start a quantitative hedge fund this year that will invest in stocks listed in the U.S., Canada, Brazil, Chile and Mexico, said people with knowledge of the matter. The fund will trade stocks in the Russell 2000 Index, avoiding larger companies targeted by peers, said the people, who asked not to be identified as the information is private. It is expected to have the capacity to manage $1 billion of assets, including allocation from a global fund that Macquarie is starting, they added.
Former MF Global CEO Corzine Considers Launching Hedge Fund: WSJ.com (CNBC)
Jon Corzine, the former chief executive of bankrupt financial services firm MF Global, is considering starting his own hedge fund, The Wall Street Journal reported Sunday on its online edition, citing people familiar with the matter. The report said the fund would start with cash from Corzine’s personal funds and some outside investors. According to one source, Corzine said he had been speaking with about a half-dozen potential investors, and expected around $150 million in assets under management.
Hedge Funds Hawk Single-Bet Deals (The Wall Street Journal)
It is the gold-plated equivalent of a late-night infomercial: a special deal for hedge-fund investors willing to act fast. Hedge-fund managers are slashing their stiff fees for those willing to take a leap of faith on a single, concentrated investment idea as varied as Icelandic bank debt, American energy companies or U.S. government-backed loans. Known as co-investments, these deals differ from conventional hedge funds because fees are lower, money is locked up longer and even by the usual covert nature of the industry they are kept under wraps.
