Ackman’s fund roars back in October, now up 8.5 percent for year (KFGO)
Hedge fund manager William Ackman‘s fund came roaring back in October and is now up 8.5 percent for the year, helping erase the memories of bruising losses only a few months ago. Because of advances in Canadian Pacific Railway Limited (USA) (NYSE:CP), Burger King Worldwide Inc (NYSE:BKW) and other investments, Ackman’s Pershing Square Capital Management gained 7.9 percent last month, said two investors who are not permitted to discuss the returns publicly. Ackman also said in a monthly report to investors that he added two short positions. That is up from one, which is a short bet on Herbalife Ltd. (NYSE:HLF), at the end of September, fueling speculation of what the new target might be.
Odey Readies New European Hedge Fund (FINalternatives)
Odey Asset Management will launch a new Europe-focused hedge fund, headed by portfolio manager Feras Al-Chalabi. The new Irish-domiciled long/short fund will invest in European stocks, equity-related securities, debt and currencies, the firm said. It will be Al-Chalabi’s first vehicle to feature a short book. The fund will debut early next month. Al-Chalabi currently manages Odey’s CF Odey Continental European and European Allegra funds. The former is up 36.7% over the past three years.
Argentina Wins Stay Extension In Hedge Fund Fight (FINalternatives)
A federal appeals court gave Argentina a rare legal victory in its battle with Elliott Management and other hedge-fund holdouts from its 2001 default. The U.S. Second Circuit Court of Appeals, which has twice ordered the country to pay the holdouts or default on the new bonds it issued to creditors that accepted its restructuring, refused to lift its stay of those orders. The court said that the stay would remain in place to allow Argentina to make a second appeal to the U.S. Supreme Court, which last month decided not to hear its case.
Australia’s Whitehaven to test patience of top shareholder (Reuters)
Delays on a major growth project and weak coal prices have pummelled shares of Whitehaven Coal to 4-1/2-year lows and could pressure the Australian firm to raise equity in 2014, putting its top shareholder in a tricky position. U.S. hedge fund Farallon Capital Management, with a near 17 percent stake, and its Asian chief Ray Zage will be in the spotlight at Whitehaven’s annual shareholders’ meeting on Monday where investors will want to hear how Australia’s second-largest independent coal miner plans to face several challenges.
Asian hedge funds show signs of maturity (Financial Times)
“The Asian hedge fund industry has all the hallmarks of a teenager,” says Rob Appleby, co-founder of ADM Capital, one of Asia’s longer-lived hedge funds. “From the outside it looks extraordinarily ugly, but it works.” His remark is meant humorously, but in one way, he is dead right: the Asian hedge fund industry is beginning to grow up. Truly Asia-based funds, with $140bn of assets under management, still make up just 7 per cent of the global industry’s total, but some managers are maturing, as are investors’ attitudes toward them.
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