Silver buyers defy hedge fund exit (FinancialPost)
Buyers of exchange-traded products backed by silver are betting $11.9 billion that big speculators are wrong about the outlook for prices, which slumped today to a 14-month low. ETP holdings are up 1.5 percent since mid-July to 19,898.8 metric tons, nearing a record reached in October, data compiled by Bloomberg show. At the same time, money managers shrank bullish wagers by 95 percent, government data show. To protect against the risk of lower prices, producer Coeur Mining Inc (NYSE:CDE) has hedged about a third of its output.
Why ESL’s Sears Loan May Be Its Best Investment This Year (InstitutionalInvestorsAlpha)
Edward Lampert the hedge fund manager appears to have done a good job negotiating with Edward Lampert the Sears Holdings Corporation (NASDAQ:SHLD) chairman. The manager of Bay Harbor, Florida-based hedge fund firm ESL Investments agreed to lend $400 million to Sears, the struggling cash-strapped retailer whose largest shareholders are ESL and Lampert. Under the terms, the loan – which matures on December 31 – will have an annual interest rate of 5 percent. Sears will also pay an up-front fee of 1.75 percent of principal. The loan can be extended an additional two months for an…
Third Point Hedge Fund Sorry For Shafting Investors, Sort Of (Forbes)
Before you even think of investing in a costly hedge fund, you should be aware that there’s a good chance some unknown existing investors may have been granted special rights and privileges permitting them to profit at your expense. Feel like the red carpet has been pulled out from under you? For example, here’s a confession from hedge fund Third Point’s Part II of Form ADV filed with the SEC dated March 31, 2011: “In the past we entered into several letter agreements or other similar arrangements (collectively, “Side Letters”) with one or more Fund investors that alter or supplement terms of the relevant Fund agreement providing for increased liquidity, heightened transparency, heightened reporting and reduced Management Fees…
Peak6 Hedge-Fund Business to Spin Out From Chicago Trading Firm (WSJ)
Chicago trading firm Peak6 Investments LP is spinning out its $2.3 billion hedge-fund business, which will change its name and focus on growth by trading European credit and stocks out of a new London office. Peak6 Investments, which specializes in options trading and clearing using its own capital, told investors Thursday of the plans to sell its stake in its Peak6 Advisors hedge-fund business, according to a letter sent to hedge-fund clients reviewed by The Wall Street Journal. Peak6 Advisors will become Achievement Asset Management, continuing under its chief executive since 2012, former UBS AG UBSN.VX +0.85% executive Joseph Scoby, who’ll also be chief investment officer (See our hedge fund investor letters group).
Puerto Rico seeks to make $900 mln note deal subject to New York law (Reuters)
Puerto Rico is preparing legislation that would make an upcoming $900 million short-term financing deal subject to New York state law, a move designed to reassure mainland investors worried about the risks of investing in the indebted U.S. commonwealth. …Puerto Rico had allowed for New York legal jurisdiction for the $3.5 billion general obligation deal it undertook in March. That deal was heavily oversubscribed and very popular among hedge fund buyers.
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