Ingersoll-Rand PLC (NYSE:IR) is expected to announce a plan to spin off its security-technology business, launch a share-buyback program and increase its dividend as part of a compromise reached with Trian Fund Management LP, people familiar with the matter said Sunday. Ingersoll said earlier this year it would undertake a strategic review of its operations and reach a decision by year-end. The review came partly under pressure from Trian, co-founded by activist investor Nelson Peltz. The plan could be announced as soon as Monday, the people said.
SAC Gets Added Srutiny as U.S. Probes InterMune Trading (Bloomberg)
SAC Capital Advisors LP, the $14 billion hedge fund run by Steven A. Cohen, is under mounting scrutiny as the U.S. investigates its trading in InterMune, Inc. (NASDAQ:ITMN) and Weight Watchers International, Inc. (NYSE:WTW), according to a person with knowledge of the matter. The U.S. Securities and Exchange Commission and the Federal Bureau of Investigation are looking into the trades, said the person, who asked not to be identified because the matter wasn’t public.
Proponent Of Tough Hedge Fund Rules Seeks To Lead Germany (Finalternatives)
Former German Finance Minister Peer Steinbrück, who led that country’s push for tougher European and international hedge fund regulations, will seek its highest office in next year’s election. Steinbrück was formally nominated to challenge Chancellor Angela Merkel by Germany’s opposition Social Democrats this weekend. He served as finance minister under Merkel from 2005 through 2009.
‘Hedge Fund’ Madam To Tell All (Finalternatives)
These are not comfortable times for the hedge fund managers who used a suburban New York woman’s prostitution ring. That woman, Anna Gristina, plans to name names during an upcoming television appearance and in a new tell-all book. Gristina, who pleaded guilty to promoting prostitution in September, will head to California this week to tape a segment with television psychologist Dr. Phil—having first appeared in Manhattan state court to get approval to fly to California. She got it, despite the objections of prosecutors.
N.J. Could Restrict Hedge Funds That Invest In Casinos (Finalternatives)
Hedge funds and private equity firms betting on New Jersey casinos could be barred from betting on its political players. Garden State lawmakers last week introduced bills that would bar alternative investment firms that invest in Atlantic City casinos from making state political contributions. Strict limits could also be placed on how much state pension funds could invest in funds with A.C. investments. The moves come after it emerged that New Jersey had invested some $200 million in a hedge fund that invests in a new Atlantic City casino.
Survey finds hedge fund manager bulls outweigh bears for 2013 (Opalesque)
In its Annual Global Hedge Fund Manager Survey, independent research and portfolio advisory firm, Aksia, has observed a dramatic turnaround in sentiment among global hedge fund managers over the last 12 months. Aksia polled the opinion of 168 institutional caliber managers across the major hedge fund strategies, which collectively account for approximately $900 billion in AUM and 41% of total hedge fund industry assets. Their findings reveal that hedge fund managers are bullish on financial assets, in a ratio of 3:1 with the most bullish coming from the Long/Short Equity strategy at 84%, but the least bullish drawn from Relative Value managers, at 50%.
Asian hedge funds in transition (InvestmentEurope)
Some large European investors are increasing interest in hedge funds in Asia, and advisers based there are recommending not to journey there with outdated preconceptions. One European allocator that does not have an old picture of Asia’s industry is IMQubator, the global seeding platform backed by APG, the asset manager for Dutch pension Stichting Pensioenfonds. IMQubator signed a mutual advisory relationship this year with Synergy Fund Management, an investment manager and adviser based in Hong Kong and founded by Eliza Lau, former CEO and CIO of SAIL Advisors in Hong Kong, and a veteran investor in Asian hedge funds.
A bigger slice of the multiasset pie (PIOnline)
Hedge fund and hedge funds-of-funds businesses are accounting for a more meaningful piece of the total assets managed by some of the largest multiasset money managers as well as their balance sheets. The message has finally sunk in: Big, traditional asset managers are not going to be able to survive without finding more lucrative sources of revenue,” said Daniel Celeghin, a partner at management consultant Casey, Quirk & Associates LLC, Darien, Conn.
Cohen Gains, Paulson Loses as Fiscal Policy Roils Markets (BusinessWeek)
Steven A. Cohen and Ken Griffin posted gains in their hedge funds in November, a month marked by market volatility following the U.S. elections and fiscal policy talks in the U.S. and Europe. John Paulson lost money in most of his funds. Cohen gained 1.1 percent in his SAC Capital International fund in November and the main funds of Griffin’s Citadel LLC rose 2 percent, according to people briefed on the returns who asked not to be named because the information is private. Paulson lost 6.5 percent last month in the Advantage Plus Fund and 12 percent in the Gold Fund, according to another person, as the price of gold fell.
Man CEO Clarke Makes Way For Roman Empire (Orange)
The chief executive of Man Group, the FTSE-250 hedge fund manager best-known for sponsoring the Booker Prize, will announce this week that he is stepping down in the wake of the dismal performance of its flagship fund. I understand that Man could say as early as today that Peter Clarke, who has run the company since March 2007, will retire early next year. He will be replaced by Emmanuel Roman, Man’s chief operating officer, who joined when his own firm, GLG Partners, was taken over by Man two years ago.
Even Regulators and Investment Professionals Don’t Get Hedge Funds (Hedged)
Hedge funds don’t make investors rich, they preserve the wealth of the investor who is already rich. Most hedge funds are aware of and carefully manage downside risk and volatility. Long only mutual funds have benchmarks to which they tend to cling. A volatile benchmark can seriously injure an investor’s portfolio. Given that hedge funds are in fact lower return and lower risk, why is it that both regulators and professional intermediaries both consider them to be more risky than long only mutual funds? This is fact. Ask any regulator or professional investment intermediary and they will always allocate more hedge fund exposure to aggressive risk client’s portfolios and less exposure to conservative client’s portfolios.
Influential economist to tout PH gains at investment summit (ABS-CBNNews)
World-renowned economist Dr. Nouriel Roubini will tout the gains of the Philippine economy at the Philippine Investment Summit in January. Roubini, co-founder and chairman of Roubini Global Economics and economics professor at New York University’s Stern School of Business, will give the keynote address at the Philippine Investment Summit in Makati City on January 30. Roberto Juanchito Dispo, president of First Metro Investment Corp., said the summit will be attended by foreign bankers, investors, fund managers and businessmen.
Horizons ETF Wins William F. Sharpe Award for Best ETF Innovation (DigitalJournal)
The Horizons Morningstar Hedge Fund Index ETF (“HHF”), a Canadian-listed ETF offered by Horizons Exchange Traded Funds Inc., (“Horizons ETFs), which gives investors exposure to the Morningstar® Broad Hedge Fund IndexSM (the “Index”), has been awarded one of the prestigious 2012 William F. Sharpe Indexing Achievement Awards. Winners of the 2012 William F. Sharpe Indexing Achievement Awards were announced during the Global Indexing & ETFs conference in Phoenix, Arizona. HHF was given the award for Best ETF Innovation, which recognizes outstanding innovation in ETF development.
SEC Charges Prominent Entrepreneur in Miami-Based Scheme (SEC)
The Securities and Exchange Commission today charged a prominent Miami-based entrepreneur with defrauding investors by grossly exaggerating the financial success of his company that purportedly produced housing materials to withstand fires and hurricanes. Claudio Osorio stole nearly half of the money raised from investors to pay the mortgage on his multi-million dollar mansion and other lavish highlife expenses. The SEC alleges that Osorio, who is a former Ernst & Young Entrepreneur of the Year award winner, raised at least $16.8 million from investors by portraying InnoVida Holdings LLC as having millions of dollars more in cash and equity than it actually did.
SEC Charges Florida-Based Lawyer with Forging Attorney Opinion Letters for Microcap Stocks (SEC)
The Securities and Exchange Commission today announced charges against a Florida-based securities lawyer for issuing fraudulent attorney opinion letters that resulted in more than 70 million shares of microcap stock becoming available for unrestricted trading by investors. An attorney opinion letter is required from a licensed and duly authorized securities lawyer in order to facilitate the transfer of restricted microcap shares on the over-the-counter markets. In April 2010, the Pink Sheets (now OTC Markets Group) banned Guy M. Jean-Pierre of Pompano Beach, Fla., from issuing attorney opinion letters due to “repeated missing information and inconsistencies” about the issuers and his lack of due diligence in his past letters.
Silver Point Rides Credit Boom (InstitutionalInvestorsAlpha)
This has been an especially good year for hedge funds that specialize in credit related strategies, and Greenwich, Connecticut-based Silver Point Capital is no exception. The firm, founded in 2002 by Goldman, Sachs alums Edward Mulé and Robert O’Shea, told investors it was encouraged by central banking actions and what it deemed to be attractive investment opportunities. The firm manages $7 billion two funds: Silver Point L.P., which is up 19.5 percent through the end of November, and Silver Point Offshore Ltd., up 15 percent.
Carson Block Goes Short Unafraid as Chinese Gangsters Chase (Bloomberg)
At a benefit for pediatric cancer care in London three weeks ago, Carson Block, the 36-year-old short seller whose research helped erase almost $7 billion of market value in China since 2010, unveiled his latest theory. …“Short sellers perform an important function in the marketplace, especially those who share their views with the public,” said David Rocker, former general managing partner of hedge fund Rocker Partners LP, which averaged an 11 percent annual return between 1985 and 2006 with bearish bets. “I applaud Block’s courage in presenting his views in the face of considerable hostility.”
George Soros Buying Gold and Google Inc. NASDAQ:GOOG, Selling Wal-Mart (NYSE:WMT) (LivetradingNews)
During the third quarter, Soros Fund Management, the fund he founded, added to its investment in the SPDR Gold Shares ETF (GLD), the world’s largest gold ETF. According to the latest SEC filing, the firm boosted its stake in GLD to 1.3 million shares, equivalent to about $214 million at last night’s close. The filing also shows that Soros Fund Management increased its holdings in a pair of gold miner ETFs sponsored by Van Eck. The filing indicates that the fund holds 2.32 million shares of the Market Vectors Gold Miners ETF (GDX) and nearly 2.4 million shares of the Market Vectors Junior Gold Miners ETF (GDXJ). Combined these positions are worth $159 million.
