Is Your New Bond Fund a Hedge Fund? Industry Enjoyed $8.2B July Inflows (Barrons)
Investors are skittish lately when it comes to plowing new money into funds — but that’s not true for the hedge-fund industry. The reason: A hedge fund may well be your new bond fund. Not strictly speaking, of course. But hedge funds’ promise of noncorrelated returns makes them clear beneficiaries of the bond market’s woes during 2013. The latest TrimTabs and BarclayHedge data show hedge funds took in $8.2 billion during July, reversing most of the $8.9 billion exiting the industry the prior month….
Shanghai lines up first foreign hedge fund entrants (FT)
Six global hedge funds are set to secure the first-ever approval to raise money from institutions within China for investing overseas, a key reform in the opening of the country’s closely guarded capital account. Shanghai has granted an overall quota of $300m that will be divided equally among six foreign funds – Canyon Partners, Citadel, Man Group, Oaktree, Och-Ziff and Winton Capital – with each permitted to raise up to $50m, according to people familiar with the programme.
Mastic Hedge Fund Appoints James O’Brien as Chief Executive (SFGate)
Mastic Investment Advisory AG, the Zug, Switzerland-based commodities hedge fund, appointed James O’Brien as chief executive officer and chief risk officer. O’Brien is a former colleague of Mastic Chief Investment Officer Kieran McKenna from Goldman Sachs Group, Inc. (NYSE:GS), according to a letter to investors obtained by Bloomberg News. O’Brien has since held senior trading roles at Cargill Inc., Lehman Brothers Holdings Inc. and Fortis Bank SA, the letter showed. The appointment was confirmed today by a Mastic official who asked not to be identified in line with company policy.
Prostitution Sting May Take Down a $3.2 Billion Hedge Fund Firm (DailyFinance)
The arrest last week of hedge fund giant Jim Bisenius in a prostitution sting may be enough to take down one of the country’s largest “fund of funds” operators. Bisenius founded Common Sense Investment Management 23 years ago, guiding it through years of growth. As a “fund of funds” it allocates its investments across various hedge funds. Diversifying across several managed funds within a single investment may hold back returns, but it does so in the spirit of reducing risk.
Equities and sales fuel London hedge fund hiring (eFinancialNews)
Hedge funds in London’s West End have doubled the amount of office space they occupy over the past 12 months, according to a report that was published this week by Cushman & Wakefield. The report found that within the alternative investment sector, hedge funds have been the most active in terms of leasing office space. They account for almost a third of take up so far this year. Hedge funds continue to favour Mayfair and St James’s, although they are also considering Grade A options close by in Soho and Marylebone. Vacancy rates for prime Mayfair and St James’s currently stand at 3.98%, according to Cushman & Wakefield.
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