Hedge Funds
With global hedge fund assets at roughly $3.45 trillion (and growing by double-digit percentages each year), money managers have a greater influence on public and private markets than ever before. DailyAlts covers every element of the hedge fund industry – from changing performance structures to manager strategies, from regulatory oversight to activist holdings, and from new fund launches to the liquidation of underperformers. This channel is your one-stop-shop for daily news and insights for the influential and topical hedge fund space.
Top Story
European investors, both retail and institutional, are showing a growing interest in hedge funds and alternative investment options, as indicated by recent findings from Cerulli Associates. In the UK, Italy, and Switzerland, there’s a notable preference for semi-liquid funds for private market investments, with 50% of UK wealth managers favoring this approach.
Get Daily Updates
Subscribe to DailyAlts Today to get Alternative Investment news, insight, and commentary delivered straight to your inbox every day.
More Stories on Hedge Funds
Hedge Funds: ValueAct Capital Gets Access to Confidential Citi Information for Another Two Years
ValueAct Capital Gets Access to Confidential Citi Information for Another Two Years. In return, ValueAct will support Citi’s board and management.
ValueAct Capital, one of the most followed activist hedge funds in the industry, first engaged with Citi in early 2018. Back then, ValueAct Capital acquired a stake in Citi, which is currently 1.3%. In January 2019, Citi and ValueAct entered an Information Sharing and Engagement Agreement valid through December 2019. This agreement has been revalidated for another two years.
Melvin: Hedge Fund Tiger Cubs Still Bullish on Chewy, But Why?
Is Chewy a good stock to buy? Not according to David Einhorn. In his 2nd quarter shareholder letter, the Greenlight Capital manager talked disparagingly about Chewy (CHWY), the online pet products company.
Darden Paper Shows Weak Hedge Fund Performance Post Financial Crisis
Hedge fund performance hasn’t lived up to the hype over the last ten years. This, according to the Executive Director of the Richard A. Mayo Center for Asset Management, University of Virginia Darden School of Business.
Hedge Funds: Why Some Singapore Hedge Funds are Hitting It Out Of The Park
Some of 2019’s best performing hedge funds are based out of Singapore.
Chong Chin Eai’s Vanda Global Fund is up over 300% this year. He started his hedge fund in Singapore with $24 million from friends and family but now runs $222 million. Annualized returns are 39%, though volatility is a stomach-churning 72%.
What’s interesting is that you couldn’t get a leaner hedge fund than Vanda.
In Focus: The Meteoric Rise of Ken Griffin’s Citadel Securities
Kenneth Griffin’s wealth is usually identified with his hedge fund. The flagship Wellington fund is up 16.7% this year through November. According to a Bloomberg story, Griffin made $ 870 million from Citadel LP, his hedge fund operations, in 2018. This is not an inconsequential sum by any standards.
What is not so well known, however, is the profitability of Citadel Securities, Griffin’s market-making business. This firm earned $5.7 billion in gross revenue in 2018, and EBITDA of $2.2 billion. Griffin is said to own 75% or more of both businesses.
Another Day, Another Hedge Fund Plans to Return Investor Capital
Everett Capital Advisors will return capital to investors, according to a new report from Bloomberg. The hedge fund of Kelly Hampaul had a rather solid run. Founded in 2015, the event-driven fund started with $140 million in assets. That figure later ballooned to about $600 million, according to the report.
Mednax Faces Activist Pressure from Hedge Fund Starboard Value
Mednax, a healthcare service provider, is facing activist demands from Starboard Value. The hedge fund is reportedly seeking a complete or partial sale of the company. The Journal says that Starboard has nominated a full slate of nominees for the company’s board of directors.
Activist Investors Stay Busy This Week – Rolls Royce, GAM, Domino’s Pizza
Activist investors are pushing for significant changes as we bring this year to a close. This week, Domino’s Pizza chairman Stephen Hemsley announced plans to step down from his role thanks to hedge fund pressure. Hemsley took the role in 2010. Now, he will exit on December 29.
BarclayHedge: Hedge Fund Returns Ticked Higher in November
Hedge fund returns continued their upward momentum in November. The industry posted a monthly gain of 1.12%, according to the Barclay Hedge Fund Index.
Alternative Investments – ARP Funds Outperformed During Q4 2018 Slump
Alternative Risk Premia (ARP) funds passed their initial test during the correction in the last quarter of 2018, says Cambridge Associates.
Research by Cambridge Associates shows that Alternative Risk Premia (ARP) funds, which are a kind of hedge fund alternatives, returned -4% during the market correction in the last quarter of 2018. In contrast, equities returned -13.7%, and equity hedge funds returned -9.3%.
By this measure, ARP funds appear to have passed their first test.
Investors Pulling Money from Hedge Fund Solus Alternative Asset Management
Solus Alternative Asset Management faces a second straight year of high redemption levels. The distressed debt specialist has struggled due to bad investments in firms like Pacific Gas & Electric and Intelsat. According to the Financial Times, the hedge fund’s flagship fund has dropped by 9% this year. In 2018, the fund fell by 15%.
HFRI Fund Weighted Composite Index Gained 1.2% in November
The HFRI Fund Weighted Composite Index gained 1.2% in November, as optimism regarding U.S. economic growth outweighed risks and negative sentiment around trade/tariff negotiations and impeachment proceedings, according to data released today by HFR, the established global leader in the indexation, analysis, and research of the global hedge fund industry.
Pershing Square 13-F: Ackman’s Hedge Fund Buys Agilent Technologies
The Pershing Square 13-F filed in November has revealed Bill Ackman’s latest stake. According to the SEC filing, Ackman’s hedge fund has scooped up a 2.9 million-share stake in Agilent Technologies. The firm specializes in laboratory instruments and software.
Hedge Fund Asia Research & Capital Management Shorts Premier Oil
Premier Oil is the target of a massive short position. Asia Research & Capital Management (ARCM) has reportedly built a massive bet against the energy company.
Hedge Fund White Elm Capital to Shut Down Despite Big Gains
White Elm Capital is shutting down its hedge fund operations. Founder Matthew Iorio wrote a letter to investors Friday announcing the decision.
Five Star Funds Launches Hedge Fund to Focus on Vegas, Baby
Five Star Funds announced it would create the Flamingo All Weather Fund, a new fund aimed to capitalize on favorable economic conditions in Las Vegas.
Alexion Pharmaceuticals Rejects Elliott Demand for “Proactive Sale”
Alexion Pharmaceuticals will not obey Elliott Management’s demand for a “proactive sale.” The company says that the process of seeking a buyer doesn’t suit shareholder interest. The biotech firm has worked to maintain control of its market share for drugs treating rare blood disorders. Following news that it would not engage in a sales process, the firm’s stock popped on Friday.
Virtus Capital President: Market Could Fall 50% If This Happens
Virtus Capital managing partner Steven Gidumal warned that markets could tank should America elect Bernie Sanders, Elizabeth Warren or Pete Buttigieg.
“If a Socialist is Elected, the Market will sell off BIG,” Gidumal said, according to CNBC. “Pick a Socialist – Bernie, Liz, Pete. etc. and the Market would sell off.”
Steve Cohen Looks to Boost Stake As MLB Team Owner
As uber-rich private equity and hedge fund billionaires are homing in on sports franchises, Steve Cohen is negotiating to up his current 8% stake in the Mets to 80%. Cohen paid $20 million for that stake in 2012.
Rivulet Capital Opposes Thoma Bravo Purchase of Instructure
Rivulet Capital has said it will vote against Thoma Bravo’s purchase of educational software giant Instructure. The firm – which owns 5.23% of Instructure – announced its intention in a regulatory filing.
Hedge Funds Are Buying Oil Contracts – Have You Noticed?
Hedge funds and oil prices aren’t like water and oil. Just two weeks after hedge funds sold off after an oil rally, they’re buying oil contracts once again. Reuters’ John Kemp notes that portfolio managers have been buying a lot of oil recently.
Pershing Square Capital Boosts Stake In Howard Hughes
Pershing Square Capital Management has increased its stake in Howard Hughes Corp., according to an S-4 filing with the SEC. Activist hedge fund manager Bill Ackman and his firm announced the increase on Wednesday.
Hedge Funds Blink; Private Equity Firms Free to Take Control of Inmarsat
A tense stand-off between activist hedge funds and private equity giants over British satellite company Inmarsat ended up a damp squib.
Activists Oaktree, Kite Lake and Rubric Capital had a change of heart overnight and withdrew their opposition to a deal that would hand over control of Inmarsat to private equity players.
As a result, a judge in London cleared the decks for a private equity group led by Apax and Warburg Pincus to take over Inmarsat in a $ 6 billion deal.
Hedge Fund Performance Fees Drop 11% in 2019
Hedge fund performance fees dropped 11% from the start of 2019 through October. Eurekahedge says that the average performance fee hit 13.3% in October. That figure is down from 15% in January of this year.