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.
The results of a poll of hedge fund managers conducted by Hedge Fund Research showed that 53% of them (687 managers) incorporated ESG factors and sustainability metrics into their investment processes. However, 47% (609 managers) said they did not do so. The results are significant, coming as they do ahead of the 2021 UN Climate Change Conference (COP26) in Glasgow this weekend.
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More Stories on Hedge Funds
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, 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 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.
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 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.
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%.
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.
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.
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 announced it would create the Flamingo All Weather Fund, a new fund aimed to capitalize on favorable economic conditions in Las Vegas.
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 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.”
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 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 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 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.
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 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.
No respite for GAM Holding as it weighs a 40% cut in its workforce and the departure of its Head of Investments.
GAM Holding announced Monday the departure of Matthew Beesley, group head of investments, with effect from the second quarter of 2020.
Hedge fund manager David Tepper had announced plans to shakeup Appaloosa Management in January 2020. But today, he’s shaking up his NFL team, the Carolina Panthers. Tepper has fired the team’s head coach Ron Rivera after a lackluster performance in the 2019 campaign.
Greenlight Capital saw its fourth-quarter woes continue last month. According to Institutional Investor, the value hedge fund dropped 1.8% in November. That decline follows a 6% drop for the fund in October.
A Toshiba hedge fund may soon emerge. The Japanese conglomerate is seeking a license to operate a hedge fund. The news comes just two years since activist hedge funds pressured the company to restructure its operations. Not only did Toshiba beat them, but they are also joining them.
Marshall Wace’s LLP reported profits of £258 million. That’s a pretty nice payday for all of its 17 partners. The firm reported a turnover of £803 million at the end of February 2019. That figure is up sharply from the £ 647 million it had in 2018, according to The Guardian.