Turns Out ‘Black Edge’ Is a Hedge-Fund Term, Not a Fungal Disease (NYMag)
Each of the two big Steve Cohen magazine profiles out this week — one from Bloomberg Businessweek and the other from literary journal n+1 — has its merits. In Businessweek, you get a look at how federal enforcers used incredible sleuthwork to catch Mathew Martoma, an accused insider trader at Cohen’s giant hedge fund SAC Capital, and are levering their success to try to get Cohen himself. In n+1, you get a slightly more prolix version of Cohen’s story that refers to him as “the Art Collector,” like he’s a member of a boy band, along with “the Cute One” and “the Guy With Frosted Tips.”
New York hedge fund bought Legacy Golf Club in Lakewood Ranch for $3 million. The premier course is almost 16 years old and was designed by golf legend Arnold Palmer. The previous owner of the course, Textron Financial Corp., acquired it for its $6.7 million debt in 2009, the Sarasota Herald Tribune said. The buyer, a subsidiary of Och-Ziff Capital Management, financed the purchase with a $3.6 million loan from Bank of America Corp (NYSE:BAC).
Dromeus Capital ‘s Greece focused hedge fund up 40% in 2012 (Opalesque)
A new Greece focused hedge fund, launched in October 2012 by Dromeus Capital Group, finished 2012 up 40.3% as the Greek debt buyback and improving market sentiment towards Greece drove returns. Dromeus, the Emerging Markets alternative investment specialist, says that the consensus that Greece would have to exit the Euro has turned almost 180 degrees to an acceptance that a Grexit is off the cards. Achilles Risvas, CEO, of Dromeus says: “Although the last quarter has seen a profound upwards rerating of Greek bonds we are strong believers that further positive repricing of Greek fixed-income and selected shares is still to come. But, while we have got off to a very strong start, we don’t expect the longer term revaluation of Greek assets to be all plain sailing.”
Gam reorganises to better integrate hedge fund and mutual fund businesses (HedgeFundsReview)
Gam Holding is reorganising its operating model to better integrate its hedge funds and mutual fund businesses. When Gam Holding split from Julius Baer in 2009 its main focus was offshore single-manager funds and funds of hedge funds (FoHFs). Since then the focus of its alternatives business has shifted to onshore Ucits funds. Excluding Swiss & Global, Gam manages $48 billion (at end June 2012), with $7.6 billion of that in Ucits funds.
Cayman Islands to Open Up to Scrutiny (CNBC)
The Cayman Islands are poised to break with decades of secrecy by opening thousands of companies and hedge funds domiciled on the offshore Caribbean territory to greater scrutiny. The British overseas territory, which wants to shed its reputation for clandestine financial activity, is introducing sweeping reforms that will make public the names of thousands of previously hidden companies and their directors.
Herbalife says fourth-quarter profit will exceed expectations (LATimes)
Herbalife Ltd. (NYSE:HLF) forecast that fourth-quarter earnings will come in higher than expected but said expenses could rise as the nutritional supplement distributor ramps up its fight with activist hedge-fund manager William Ackman. The Los Angeles company said Thursday it also plans to buy back shares, a sign that management believes the stock is undervalued. It’s a much-needed boost for a company that’s been mired in a battle with an investor who says the company is on its way downhill.
KKR and Canada fund to provide loans (FT)
A leading Canadian pension fund is joining with KKR and its partners to provide financing for middle-market companies, highlighting the growing role of alternative investment firms in lending businesses once dominated by banks. The Canadian Pension Plan Investment Board will provide up to $2bn for deals done by MerchCap Solutions, a platform that KKR and hedge fund Stone Point Capital established last summer with $300m of capital.
Linedata announces two new hedge fund clients in Asia, Hong Kong’s Triskele to shut funds… (HedgeWeek)
Global solutions provider Linedata announced this week that two hedge funds in Asia have selected Linedata Global Hedge to support their businesses. One of these, Magenta Advisors PTE Ltd (Magenta), an independent boutique asset management and investment advisory firm based in Singapore, selected the portfolio management and middle office module of Linedata Global Hedge to support its start-up hedge fund business.
Global concern drives haven’s rethink (FT)
The secretive tax haven that is home to the world’s hedge fund industry is poised for a radical overhaul. The taxes are to remain light, but the Cayman Islands are set to become a lot less shady. Beset by angry foreign politicians and under pressure from sweeping global regulatory changes, the world’s sixth-largest financial centre (population 56,000) has until now staunchly resisted tinkering with its highly successful economic model.
Hedge fund manager: Aerospace taking off (CNN)
The Dreamliners may be temporarily grounded, but one hedge fund manager is betting that aircraft makers are about to take off. “The aerospace industry was essentially put on hold during the few years since the financial crisis, but now there is a real need for modern planes,” said Dinakar Singh, founder and CEO of New York-based hedge fund TPG-Axon Capital Management, adding that he expects the industry will enjoy strong and steady growth around the world for the next 10 to 15 years. Even though The Boeing Company (NYSE:BA) has been under pressure lately because of trouble with its 787 Dreamliner, the company along with rival Airbus, part of European aerospace group EADS, will continue to dominate the industry, said Singh while speaking at the Bloomberg Global Markets Summit in New York Thursday.
Citi’s Corbat tempers investor expectations in debut (Reuters)
Mike Corbat, Citigroup Inc. (NYSE:C)‘s new CEO, used his earnings debut to temper investor expectations for a turnaround at the company, delivering subdued profits and saying the bank still had a lot left to clean up. …”It may be that the new CEO is holding back,” said Gary Townsend, president of hedge fund Hill-Townsend Capital LLC. “There’s no reason that the quarter when Pandit left and (Corbat) came in should be great.”
