Archive for Hedge Funds

  • Hong Kong hedge funds are leaving Central as Chinese move in
  • It’s hard to hire top talent if you’re ‘sitting in a shoebox’

Benjamin Fuchs raised eyebrows five years ago when he opened his hedge fund next to a place selling live chickens in Hong Kong’s hustling, bustling Tin Hau neighborhood.

It was akin to choosing Queens over Manhattan in New York — or lowly Croydon over moneyed Mayfair in London.

But nowadays Fuchs is no outlier. He’s part of a swelling exodus of hedge funds from the tony confines of Hong Kong’s Central district, home to luxury landmarks like the Mandarin Oriental hotel…

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  • Puerto Rico hedge fund targets general-obligation bonds
  • Millennium Management fund gained 2.5% this year through April

A hedge fund at Emerging Sovereign Group that has bet against the Chinese economy sunk about 62 percent this year through April.

The Nexus fund dropped 8.2 percent last month, according to an email to investors seen by Bloomberg News. The April results mark at least the third consecutive month of negative returns for the fund…

Hedge Fund Plummets 62% After Betting Against the Chinese Economy

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It was one of the most bitter battles between a company and a hedge fund in years, a fight rife with insults and innuendo — and it ultimately led to a chief executive’s ouster.

But on Monday, with days to go before Arconic shareholders met to vote on directors, the industrial parts maker settled its monthslong dispute with the activist investor Elliott Management.

The pact ends what had been an intensely watched proxy fight on Wall Street, at a time when much of corporate America has accepted shareholder activists — investors who prod companies for changes in strategy — as a way of life…

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  • U.S. 10-year yield may have already peaked for 2017, BMO says
  • Fiscal policy on hold, weaker inflation support bond market

A buildup in risk across the globe is getting too big for U.S. bond investors to ignore.

After staking their biggest bet ever against the $14 trillion Treasuries market at the start of 2017, hedge funds and other large speculators have had a rapid change of heart. Their net-long position in 10-year Treasury futures is now the most since December 2007, reaching 240,010 contracts as of May 16, U.S. Commodity Futures Trading Commission data released Friday show…

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Paul Tudor Jones, the founder of Tudor Investment Corp., has invested in two artificial-intelligence startups as the money manager expands into strategies that employ big data.

The hedge fund manager has invested in CargoMetrics Technologies, an investment firm that uses tools such as satellite signals and shipping data to trade commodities, currencies and equity futures, according to a person with knowledge of the matter. He’s also backed Numerai, a San Francisco-based hedge fund that makes wagers using anonymously submitted models, said the person, who asked not to be identified because the information is private…

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Will the third time be the charm for Jon S. Corzine?

Mr. Corzine won a United States Senate seat after being maneuvered out of Goldman, eventually moving on to become governor of New Jersey. After losing the governorship to Chris Christie, he took over MF Global, which collapsed in 2011.

Now, Mr. Corzine, 70, is planning his next act: a hedge fund tailored to take advantage of the chaos of the Trump era.

In his first interview since the MF Global meltdown began, Mr. Corzine said that he would seek to anticipate how the Trump administration and other world leaders would enact policy…

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LAS VEGAS — The billionaire investor Steven A. Cohen may be barred from managing outside money until next year, but he has already hinted that he plans to get back into the hedge game.

The most telling sign yet? Mr. Cohen’s unexpected appearance at a Las Vegas hedge fund conference this week.

Mr. Cohen was seen late Thursday night playing craps at a table in the casino of the Bellagio Las Vegas, one of the city’s most extravagant hotels. Mr. Cohen, 60, was rolling the dice with Ilana Weinstein, a sister of the hedge fund manager Boaz Weinstein, at a table with a maximum bet of $5,000…

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LAS VEGAS — Hedge fund managers know him as one of their own — the wealthy, backslapping host of their industry’s splashiest conference each year in Las Vegas.

Regulars at the World Economic Forum know him as the politically connected insider who organizes an annual wine tasting party in the Swiss Alps.

President Trump knows him as a major Wall Street fund-raiser with hopes of joining the administration…

Anthony Scaramucci, Hedge Fund Showman, Finds Himself in Limbo

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When securities regulators sued the hedge fund manager Leon G. Cooperman last year, accusing him of violating insider trading laws, he vowed to fight to the bitter end. His decades-long reputation on Wall Street was on the line, he said at the time.

Now, nearly eight months later, he and his firm, Omega Advisors, have agreed to settle, paying just under $5 million in civil penalties and forfeited profits.

But unlike other hedge fund managers who have reached settlements with the Securities and Exchange Commission in insider trading cases, Mr. Cooperman is not admitting any wrongdoing. Significantly, he will not be barred from the securities industry…

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  • Reduced positions in the country’s stocks by $800 million
  • Itau Unibanco remains the most popular holding among funds

It looks like a smart move in retrospect.

U.S. hedge funds reduced equity holdings tied to Brazil by about a net total of $800 million from the start of the year to end of March, according to data compiled by Bloomberg. The profit taking came after a 69 percent surge in Brazil’s benchmark stock index last year.

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  • As the trio rallied, they missed almost $600 million in profit
  • The misfortune may add pressure on manager performance

The rally in America’s biggest technology companies is making the smart money look dumb.

In a quarter when Apple Inc., Amazon.com Inc. and Alphabet Inc. rose three times as fast as the market, regulatory filings show hedge funds were net sellers of a combined 7.5 million shares. On paper, that’s $600 million of lost upside since March 31, since each stock has kept rising…

Tech Stocks Surge as Hedge Funds Bail Out

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Jeffrey W. Ubben has long been a different kind of activist investor. Mr. Ubben, a founder of ValueAct Capital, largely avoids the limelight and mostly works with companies behind the scenes to improve performance, often focusing heavily on corporate governance.

Now Mr. Ubben is practicing what he preaches by putting into effect his own orderly succession.

In passing control of the firm’s $16 billion portfolio to his longtime deputy, Mason Morfit, Mr. Ubben is promoting a degree of continuity that is rare in the hedge fund world. Mr. Morfit was one of his first hires after ValueAct’s founding in 2000, and he has played a major role in some of its most prominent investments, including holding board seats at Microsoft and Valeant Pharmaceuticals International…

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Good performance, mediocre results or even downright ugly returns. When it comes to hedge funds, it scarcely matters. Even as some investors begin to sour on these high-priced stock pickers, the top fund managers still haul in enormous paychecks.

The 25 best-paid hedge fund managers earned a collective $11 billion in 2016, according to an annual ranking published on Tuesday by Institutional Investor’s Alpha magazine.

Even managers who had a tough year were able to cash in. Nearly half of the top-25 earners made single-digit returns for their investors, a lackluster sum in a year when the Standard & Poor’s 500-stock index was up 12 percent, accounting for reinvested dividends…

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Brevan Howard Asset Management’s flagship hedge fund suffered about $1 billion in outflows in April as investors continued to pull money, according to a Bloomberg News calculation based on the fund’s letters to investors.

Assets managed by Brevan Howard Master Fund, which lost 0.7 percent last month, dropped to $8.7 billion at the end of April, from almost $10 billion a month ago, the letters show. The calculation doesn’t take into account currency fluctuations.

Assets have roughly halved in the past year after investors asked for their money back following poor performance. A spokesman for the investment firm run by billionaire Alan Howard declined to comment…

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  • Nykredit hedge fund has delivered 11% on average since 2008
  • Strategy involves spotting mispriced call options on bonds

The Danes invented handball and they are mad about football. But their real national sport is deciding when to refinance their mortgages.

The $440 billion Danish mortgage bond market is more than 200 years old, and legend has it there’s never been a single default. When Denmark, the country, went bust during the Napoleonic wars, its notoriously efficient mortgage-bond market chugged along without investors taking a hit…

Hedge Fund Makes a Fortune on a $440 Billion Danish Obsession

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  • Facebook tops list of stocks getting the most new investments
  • Many of the hedge fund darlings have been involved with deals

The favorite new bets by hedge funds ranged from the predictable Facebook Inc. to the less known VCA Inc., a pet-service provider.

Many companies attracting the most hedge fund money in the first quarter have either agreed to deals or closed them. Dow Chemical’s $78 billion merger with DuPont Co. is expected to close in August. Liberty Media Corp. purchased Formula 1 in January, Mead Johnson Nutrition Co. agreed to buy Reckitt Benckiser Group during the first quarter, and T-Mobile US Inc. has been in preliminary talks to merge with Sprint Corp…

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  • Commonwealth’s pension systems set to go broke this year
  • Island’s $123 billion bankruptcy biggest in municipal history

The message in Puerto Rico is blunt: pay us, not Wall Street.

Anger over the biggest municipal bankruptcy in U.S. history has centered on the urgent question of public pensions. Puerto Rico has promised its workers and retirees $49 billion in benefits, but it’s guaranteed bondholders even more.

The pension system is scheduled to run out of money as soon as July, and many on the island fear, with benefit cuts already under discussion, that the hedge funds who own one-third of the commonwealth’s bonds will wrangle a better deal than ordinary Puerto Ricans…

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U.S. prosecutors are investigating one of Wall Street’s darkest markets, focusing on hedge funds suspected of inflating the value of debt securities in their portfolios to juice the fees they collect.

Having prosecuted traders who lied to customers about bond prices, the government is now scrutinizing hedge funds that allegedly solicited bogus price quotes from brokers, according to three people familiar with the matter who asked not to be identified. Such a practice would have enabled the funds to pump up the value of illiquid securities on their books…

Hedge Funds Are Facing a U.S. Criminal Probe Over Bond Valuations

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  • British tax agency wrongly identified year-end as April 6
  • Legal dispute over whether the mistake invalidates inquiry

A hedge fund manager says the British tax collection agency can’t investigate his 2009 finances because of a mistake in the letter warning him about the probe.

Her Majesty’s Revenue & Customs wrote to Michael Mabbutt, then at Thames River Capital, saying it wanted to open an inquiry into the tax year ending April 6, 2009, according to evidence from a London court hearing. The U.K. tax year ends on April 5.

Mabbutt’s lawyers say the error invalidates the notice.

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Carl C. Icahn, the billionaire activist investor, was once known for causing consternation in the boardroom. Now, he is the source of much hand-wringing on Capitol Hill.

On Tuesday, eight Democratic senators led by Elizabeth Warren of Massachusetts called for a federal investigation into whether Mr. Icahn violated laws against insider trading and market manipulation in his role as a special adviser to President Trump.

In a letter addressed to current and acting heads of the Commodities Futures Trading Commission, the Securities and Exchange Commission and the Environmental Protection Agency, the senators raised questions about Mr. Icahn’s majority investment in CVR Energy, an oil refiner…

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  • Money managers least bullish on WTI crude in five months
  • Longs fell, shorts surged just before oil took near 5% tumble

Hedge funds jumped out of the oil market just in time.

Before West Texas Intermediate crude nosedived on Thursday, wiping out the rally driven by OPEC’s deal, money managers slashed bets on rising prices by 20 percent, according to U.S. Commodity Futures Trading Commission data. Now they may soon be well poised to start betting on the next rally.

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  • Big names made calls on Trump, gold, GM at last year’s event
  • Gundlach, Ackman, Einhorn to present at today’s conference

Stanley Druckenmiller contended that the stock market had hit a wall. David Einhorn recommended General Motors Co. And Jeffrey Gundlach reiterated his prediction of a Trump presidency.

Since 1995, heavyweight fund managers have stood before their peers at the Sohn Investment Conference to share their most compelling views. Today in New York, they’ll do it again.

So how did the picks from 2016 fare? Let’s take a look…

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  • Money managers least bullish on WTI crude in five months
  • Longs fell, shorts surged just before oil took near 5% tumble

Hedge funds jumped out of the oil market just in time.

Before West Texas Intermediate crude nosedived on Thursday, wiping out the rally driven by OPEC’s deal, money managers slashed bets on rising prices by 20 percent, according to U.S. Commodity Futures Trading Commission data. Now they may soon be well poised to start betting on the next rally.

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For investors having a last-minute wobble about whether they’re hedged for France’s presidential election, overnight volatility on the euro versus the dollar shows options are relatively cheap. Deutsche Bank AG estimates the pair would tumble by 3 to 6 percent at the open if far-right candidate Marine Le Pen were to win, given her open discussions about abandoning the euro and the fact that few people are positioned for this outcome, meaning the effect would be magnified…

Euro Options Offer Cheap Last-Minute Hedge for Le Pen Win: Chart

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  • Dentists, plumbers add more value in aggregate, CEO says
  • Billionaire advocates index strategy for most investors

Warren Buffett isn’t done criticizing hedge-fund managers for wasting clients’ money.

At the annual meeting of his Berkshire Hathaway Inc. he again pressed the argument that, in aggregate, investment professionals aren’t worth their fees — and that people would be better off sticking their money in a low-cost index fund. He also challenged how hedge fund managers are paid.

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  • Tribeca Investment Partners buys into Cann Group IPO
  • Cann Group has a license to grow cannabis for medical use

Tribeca Investment Partners Pty, owner of the world’s best-performing hedge fund last year, has found its next stock pick: a tiny grower of cannabis.

The Sydney-based money manager has bought shares in the initial public offering of Cann Group, the only Australian company that has a federal government license to cultivate marijuana for medicinal purposes, according to Ben Cleary, who co-manages the Tribeca Global Natural Resources Fund with Craig Evans. The fund, which soared 145 percent in 2016, is up 2.7 percent this year through the end of March…

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John A. Paulson is one of the best-known names in the hedge fund industry. But these days, Mr. Paulson is having more success in the political realm than he is managing his business.

Mr. Paulson, 61, was one of the first people on Wall Street to back Donald J. Trump’s bid for the presidency. He counseled Mr. Trump on economic matters during the campaign. He gave $250,000 to Mr. Trump’s inaugural committee. And he recently visited President Trump at the White House for a “C.E.O. Town Hall.”

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  • Accord resolves Partners Management Fund’s Delaware suits
  • Theranos seeking to end other litigation over testing scandal

Theranos Inc. agreed to settle an early investor’s claims that the embattled blood-testing firm misrepresented its performance and technology in order to raise more than $96 million in funding.

Partner Management Fund LP will drop two lawsuits related to the startup’s fumbling of blood tests, Theranos officials said Monday in an emailed statement. Terms of the accord weren’t released.

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