The shame of hedge fund masterminds (TampaBay)
From the “nice work if you can get it” desk, the New York Times business section offered this headline the other day: “Pay Stretching to 10 Figures.” No, this isn’t about innovators being paid for their smart and indispensable products, a la Steve Jobs. It is a story of hedge fund managers, the tin-pot potentates of the financial world. They are America’s top-dog moneymakers, pulling in more than movie stars, top athletes, even banking CEOs. They tend to shun the spotlight, and for good reason. An average family would have to work for 18 years and 146 days to make what an average hedge fund manager makes in one hour. We must all look like barbarians at the gate to them.
Former mega hedge fund Stark Investments liquidates while fund closures globally decrease (Opalesque)
Stark Investments announced it would close down its operations after assets fell by 85% from $14bn to $2.1bn; a report by HedgeFund Intelligence suggested that the rate of closures in the global hedge fund industry went down for the fourth year in a row, with 302 fund shutdowns in 2012 (HFI also reported that hedge funds assets topped $2.2tln in 2012 on the back of solid average performance across the industry and new inflows from investors worldwide); the SS&C GlobeOp Forward Redemption Indicator for April 2013 measured 2.95%, down from 4.33% in March; data from eVestment showed that hedge funds flow turned negative in March amounting to $12.4bn, but flows for the quarter were still positive $7.6bn and total industry AUM reached $2.664tn; and Tower Fund Services commented many investment funds are struggling to raise capital as only 5% of them attract 80%to 90% of all capital flows.
Solaise doubles assets as clients eye smaller hedge funds (Reuters)
A hedge fund set up by alumni from some of the world’s biggest computer-driven traders of futures markets has almost doubled assets in recent months, as investors in the sector look to smaller firms to help them ride out tough market conditions. Solaise Capital, set up in late 2010 by former employees of Winton, Man Group’s (EMG.L) flagship AHL fund and Aspect Capital, told Reuters that inflows from a pension fund client in December and further inflows this year have lifted its assets to around $165 million. That compares with the $86 million it ran at the end of November. Meanwhile Man Group has seen assets at its AHL computer-driven investment fund fall to $14.4 billion at the end of last year from $21 billion a year before, while Winton Capital, one of the world’s biggest funds, has also seen outflows.
‘Oblivion’ Proves Cruise Still Controls Box Office (WSJ)
Proving that Tom Cruise still has mass Hollywood appeal even after his last few flops, “Oblivion” delivered one of the star’s biggest ever openings at the box office this weekend. The science-fiction film grossed $38.2 million in the U.S. and Canada, according to an estimate from distributor Universal Pictures, owned by Comcast Corporation (NASDAQ:CMCSA) +1.43% That is a solid, if not fantastic, start for a movie of its size. “Oblivion” cost about $150 million to produce, according to a person involved in the production. A studio spokeswoman said the final cost after tax credits from shooting locations including the United Kingdom and Louisiana was $120 million. Universal co-financed the movie with a fund managed by hedge fund Elliott Associates LP.
Hedge Fund Strategy – Motif Investing Raises $25 Million (HedgeCo)
Motif Investing, the company that pioneered ideas-based stock investing, has raised an additional $25 million in financing from a group of investors including Goldman Sachs Group, Inc. (NYSE:GS) and existing Motif investors Foundation Capital, hedge funds Ignition Partners and Norwest Venture Partners. Darren Cohen, Managing Director of Principal Strategic Investments at Goldman, is joining Motif’s board as an observer. This coupled with the investment is expected to deepen the firm’s relationship with Motif.
