Editor’s Note: Related tickers: Netflix, Inc. (NASDAQ:NFLX), Goldman Sachs Group, Inc. (NYSE:GS), American International Group, Inc. (NYSE:AIG), Citigroup Inc (NYSE:C), Berkshire Hathaway Inc. (NYSE:BRK.A), Dell Inc. (NASDAQ:DELL)
Citadel LLC, the $15 billion hedge- fund firm founded by Kenneth Griffin, cut six Hong Kong-based people from its team focused on Asian equities, about a year- and-a-half after expanding the group. Fund managers Raymond Shu and Agus Tandiono are among those who left the company, said Katie Spring, a spokeswoman for Chicago-based Citadel. She declined to comment further. Citadel is returning to its past practice of overseeing Asian equity investments from Europe and the U.S., which a review found to be more efficient, said a person with knowledge of the matter who asked not to be identified because the information is private. The firm will retain its Hong Kong office, home to a team that seeks to profit from macroeconomic themes and a securities business, said the person. Citadel will continue to invest in stocks in the region.
Why Tilson Flip-Flopped On Netflix And Loves Citi’s New CEO (Forbes)
Tilson: Yes. Well, especially with the management change. I think the new CEO is excellent. If you want to look at where I think American International Group, Inc. (NYSE:AIG) can go, I think look at Citigroup Inc (NYSE:C), because I see very analogous situations. Enormously large, global financial companies, both of which basically went bankrupt, but on the verge of bankruptcy were bailed out by the government, both of which were massively complex businesses with lots of toxic loans and derivatives and so forth. …I can tell you what Berkshire Hathaway Inc. (NYSE:BRK.A) is worth, plus or minus 10% with high degree of confidence. With the same degree of confidence, I couldn’t tell you plus or minus 50% on Netflix, Inc. (NASDAQ:NFLX), because it’s a very open-ended situation. I think in ten years, I think it has the possibility of being an enormously valuable media company that could have a market cap like Amazon’s or something of $100 billion.
Kyle Bass turns critical eye toward China (HedgeFundIntelligence)
Kyle Bass of Hayman Capital Management is well known as a Japan bear, but it is the risk of a full-scale recession in China that is pushing him to aggressively take down risk across his portfolio, according to a June investor letter obtained by Absolute Return China troubles could result in “very bad news for asset prices around the world,” he wrote. “The scale and pace of credit expansion in China over the last 5 years is truly staggering. The compounded annual growth of bank assets as measured by the China Banking Regulatory Commission has been 30.8%,” Bass wrote. “To give some perspective, a 30.8% compounded annual growth of credit in the U.S. equivalent over 5 years would be an expansion of $33 trillion. This rate of credit growth is three times the total credit system growth experienced…
Mistrial In Hedge Fund Fraud Case (Finalternatives)
A federal jury has failed to reach a verdict in the fraud case against a former hedge fund manager. U.S. District Judge Paul Crotty in New York declared a mistrial after jurors spent four days deliberating Michael Balboa’s fate. “If you can’t reach a verdict unanimously, that’s a decision we have to recognize,” the judge said. Balboa, who worked at London-based Millennium Global Investments, was accused of misleading investors about the hedge fund’s investment in illiquid bonds. Prosecutors said he and two brokers inflated the bond’s value, and then hid those valuations from Millennium’s auditor while trumpeting them to clients.
Neymar-Investing Hedge Fund Doyen Said Backed by Kazakh Family (SFGate)
A property developer and luxury hotel chain owner are among a small group of investment partners in Doyen Capital LLP, which has made bets on the career of soccer stars Neymar and Radamel Falcao, two people who have worked with the hedge fund said. The families of Tevfik Arif, founder of Bayrock Group LLC, and Fettah Tamince, chief executive officer of Rixos Hotels, are investing in soccer, energy trading and other areas through Doyen, said the people, who weren’t authorized to speak publicly about the subject. The fund’s managers include Arif’s son, according to one of the people.
Investment Banks Eye ‘Hedge Funds for the Masses’ (CNBC)
Several investment banks are said to be eyeing the launch of hedge funds for retail investors with minimum investments as low as $1,000 following the launch of a Goldman Sachs Group, Inc. (NYSE:GS) fund in May that raised $58 million in less than two months. Goldman Sachs Group, Inc. (NYSE:GS) became the first major investment bank to launch a multi-manager hedge fund for the retail market, and other banks are said to be planning similar offerings, according to Amy Bensted, head of hedge fund research at alternative asset data provider Preqin.
Hedge funds bullish on global telecom and cable, media and gaming (Opalesque)
A hedge fund manager who attended the latest Opalesque 2013 West Coast Roundtable has expressed a bullish outlook on global telecom and cable, media and gaming industry. Chris Ainsworth COO and CFO of registered investment advisor Maerisland Capital, LLC, said that because the market is enjoying high liquidity, the rise in tide is lifting everything at this point that has created opportunities not only on the long side of investing and riding the wave but also on the short side.
PRECIOUS-Gold inches up on thin trade as stocks ease (Reuters)
Gold edged higher in thin trade on Wednesday as Asian stocks eased and following comments by two U.S. Federal Reserve officials that the central bank’s economic stimulus could continue for some time. But investor sentiment remained dour as outflows from exchange-traded funds continued and demand failed to pick up even though prices remain near three-year lows, indicating the market is expecting further declines. …”I am not convinced this is the bottom,” well-known commodity investor Jim Rogers said at an event in Singapore. “Where that bottom will be I have no idea. Perhaps it will be $900-$1,000.”
Michael Dell Has Been Adviced To Raise Offer For Billionaire Carl Icahn (IVCPost)
Dell Inc. (NASDAQ:DELL)‘s Founder Michael Dell has been advised by experts to raise his current offer of $24.4 billion for the sale of Dell Inc. (NASDAQ:DELL) to billionaire investor Carl Icahn. Despite the advice of the special committee that was formed to assess the best option for Dell Inc. (NASDAQ:DELL) shareholders, Michael Dell was non-committal about the matter, sources said. Billionaire investor, Carl Icahn has said that Michael Dell’s current offer substantially undervalues the company’s worth. Institutional Shareholder Services or ISS is expected to share its view on the Michael Dell offer.
Caxton, Citadel Among Few to Make Money in June (InstitutionalInvestorsAlpha)
June may have been a bust all over, with most market averages — and many hedge fund managers — finishing the month in the red. However, several big-name hedge funds posted strong results or continue to enjoy very good years. One of this year’s top performers is Caxton Global Investment, the fund founded by Bruce Kovner and taken over by Andrew Law in January 2012 and run out of New York-based Caxton Associates. The macro fund was up 2.25 percent in June alone and is now up 15.9 percent at the year’s halfway mark. It is not clear which markets Law made money from or exploited.
