Big hedge fund Baupost takes stake in Perth-based Liquefied Natural Gas Ltd (SMH)
Seth Klarman‘s $US27 billion hedge fund Baupost has become the latest US investor to pile onto the share register of aspiring US LNG terminal developer Liquefied Natural Gas Ltd, whose shares have more than tripled in the past two months. Baupost now holds a 6.69 per cent stake in Perth-based LNG Ltd, which is developing the $US3.5 billion Magnolia LNG export terminal in Louisiana, according to a substantial shareholder notice lodged on Thursday. LNG Ltd has seen a massive surge in its market value as the market became aware of the progress it is making at Magnolia LNG, which chief executive Maurice Brand says has the potential to be among the first five US gas export ventures to start shipments, subject to approvals.
Don’t call it a hedge fund (FinancialPost)
What’s in a name? For a growing number of hedge funds, the answer seems to be quite a lot. Working for, or better still running a hedge fund, has long been the dream for thousands of business school graduates and seasoned investment managers. These days, however, some in the $2.7 trillion industry, known for its secrecy, hefty fees and recent slump in returns, want distance from those two words. Boston-based Highfields Capital for instance, which manages billions for big universities and exclusive endowments, gently asks journalists not to call it a hedge fund, preferring asset management firm.
San Fran. Pension Postpones Hedge Fund Decision (Finalternatives)
The San Francisco City & County Employees’ Retirement System is going to take its time before taking the plunge into hedge funds. The $20 billion public pension fund’s board this week voted to table a planned 12% allocation to alternative investments plus a $3 billion allocation to hedge funds for 90 days, giving it more time to consider its first foray into the asset class. The board also put the brakes on plans to issue a request for proposals from hedge fund consultants. The alts. plan has been championed by system chief investment officer William Coaker, who has said it would reduce risk.
Left-wing Soros group to help TN justices up for retention (TownHall)
Add billionaire George Soros’ name to the list of left-wing activists working to assist three Tennessee Supreme Court justices up for a retention vote this summer. According to an advertisement, one of his reported organizations is actively looking for an experienced organizer to develop and implement strategies to help “advance or defend fair courts” in Tennessee, and three other states. Earlier this month the same organization, Justice at Stake, put out a media release expressing concern about special interest forces targeting justices Gary Wade, Sharon Lee and Connie Clark.
Hedge funds ‘biding their time’ to file Euribor suits (Risk)
US hedge funds have expressed interest in suing investment banks over the manipulation of benchmark interest rates such as Euribor and Libor, but will not take action until more evidence is revealed, according to people familiar with the matter. Large financial institutions are “biding their time” waiting for more details to emerge in particular from a critical European Union probe into rate-fixing allegations, say City litigation lawyers. Libor, London’s benchmark interbank rate, provides the yardstick for more than $300 trillion of contracts from mortgages to interest rate swaps. Jonathan Cary, a partner who specialises in banking litigation for London-based law firm Reynolds Porter Chamberlain (RPC), suggests that private suits could be anywhere from tens of millions to billions of dollars.
Exhilway exits hedge fund business (HedgeWeek)
The deal will not result in any instantaneous cash flows for Exhilway. Exhilway, which has been a hedge fund player since 1974 with automated trading systems, is now looking to set up new market neutral funds focusing on the emerging markets of Morocco, Hungary, India, Brazil and China along with the developed markets of US and Europe. Exhilway now plans to focus on investing in global indices and a few handpicked stocks with a focus on long term appreciation rather than mere trading. Exhilway plans to launch several private equity funds, mutual funds and exchange traded funds to attract global investors…
Tiger’s Julian Robertson big fan of Google & Uber (CNBC)
Hedge Fund Manager Allegedly Victimized By Strippers (Finalternatives)
An unidentified hedge fund manager is among at least four men allegedly drugged and ripped off by a group of New York strippers. Four strippers and a strip-club manager have been arrested for the alleged scheme, which prosecutors say cost victims almost $200,000. According to the indictment, the quartet would “fish” for victims at ritzy bars in New York City and on Long Island, texting the “worthy targets” to meet up later. Then, they would allegedly drug the men and take them to one of two strip clubs, Scores in Manhattan and Roadhouse NYC in Queens.
Hedge Funds Get Stung by Slow Markets (WSJ)
Some of the biggest investors on Wall Street are losing money with wrong-way bets in markets around the globe, a surprising black eye amid a rise in stock and bond prices. Hedge-fund managers including Paul Tudor Jones, Louis Bacon and Alan Howard are among those who have misread broad economic and financial trends. Some have lost money as Japanese stocks fell, while others have been upended by the surprising resilience of U.S. bonds. An unusual period of calm has exacerbated problems for many trading strategies dependent on volatile markets. The losses by these so-called macro investors are contributing to a trading slowdown hurting the largest investment banks.
Allergan Sued Over Poison Pill Trigger (NYTimes)
Pershing Square Capital Management, the hedge fund run by activist investor William A. Ackman, has sued Allergan, the target of a hostile bid from Pershing Square and Valeant Pharmaceuticals Intl Inc (NYSE:VRX). Pershing Square is seeking to call a special meeting of Allergan shareholders later this year, at which it hopes to vote in new board members who would support the deal, which is valued at $53 billion. But Pershing Square contends that Allergan has not made it clear whether or not calling the meeting would set off its shareholder rights plan, or poison pill, which would substantially dilute shareholders, including Pershing Square with its nearly 10 percent stake. By not making that clear, Allergan is effectively postponing any potential meeting.
Everest’s Emerging-Markets Bets Pay Off (InstitutionalInvestorsAlpha)
Marko Dimitrijevic’s Everest Capital is deftly maneuvering through the volatile emerging markets so far this year. According to its May report sent to clients and obtained by Alpha, four of the Miami-based firm’s five global- and emerging-markets-focused hedge funds gained between 4 percent and 5 percent last month alone. As a result, three of the hedge funds and the firm’s two long-only funds are handily beating the various global market benchmarks for the first five months of the year.
‘Shorting Strangles’ Pays Off for One Macro Manager (WSJ)
In an environment that has seen many famous so-called macro managers bleed out slowly, one less well-known name has bucked the trend. Rajiv Sobti, founder of $850 million New York-based hedge-fund firm Karya Capital Management LP, went against the grain—and many of his peers—earlier this year in betting on an extended period of low volatility. Mr. Sobti said in an interview with MoneyBeat that he came to the conclusion after realizing that for all the bluster on rising long-term, central banks were unlikely to take concrete steps to move them as long as they saw the economy as remaining weak.
Recommended Reading:
Oaktree Capital’s Howard Marks’ Insight on Markets
