Paulson’s Credit Opportunities fund up 6.6 percent ytd to end-May: source (Reuters)
Hedge fund manager John Paulson‘s credit opportunities and merger arbitrage funds were up 6.6 percent and 3.3 percent year-to-date through the end of May, respectively, easily surpassing their benchmarks, according to an investor in attendance at Paulson & Co’s recent mid-year client event. Paulson, who runs more than $21 billion and made headlines last week on news he amassed a large stake in Allergan, Inc. (NYSE:AGN) of more than six million shares and supports a deal between the Botox maker and Valeant Pharmaceuticals Intl Inc (NYSE:VRX), told clients at the recent London event that merger arbitrage spreads are “becoming attractive,” noting Allergan and Mallinkckrodt’s acquisition of Questcor Pharmaceuticals Inc (NASDAQ:QCOR).
Mutual-Fund King Bill Miller Makes Comeback (Wall Street Journal)
On a sunny Friday afternoon, mutual-fund manager Bill Miller sat in a darkened conference room here, absorbed in a scientific lecture about how biological organisms learn to adapt and survive. He knows a lot about survival. After 15 years as the best stock picker in the business, Mr. Miller destroyed his reputation during the financial crisis, walked away from the fund that made him rich and famous, and seemed likely to recede into oblivion as the manager of a much smaller mutual fund. Over the last three years, though, Mr. Miller’s Legg Mason Opportunity Trust has outperformed 97% of the mutual funds in its category, according to research firm Morningstar, Inc. (NASDAQ:MORN).
Blackstone Said to Sign on Three Traders for Hedge Fund (Bloomberg)
The Blackstone Group L.P. (NYSE:BX), already the largest investor in hedge funds, is signing on a team of three traders for the first such fund that it will manage directly, according to two people with knowledge of the plans. The team will manage about $500 million of client capital and borrowed money to make bets on and against stocks starting this year, said the people, who requested anonymity because the impending hirings haven’t been announced. New York-based Blackstone has spoken with about 75 traders to add more strategies for its hedge fund, the people said, without identifying how many the firm plans to hire.
Bridgewater Associates Abandons Plan To Build in Stamford (Hartford Courant)
Yachters and local planning and zoning officials seem to have won their battle with the world’s largest hedge fund, whose CEO wanted to build a $750 million headquarters on the Stamford waterfront. Bridgewater Associates, which announced its plans to move from Westport to Stamford almost two years ago, on Friday revealed it was abandoning the plan. The company put out a statement that said: “After careful examination and reflection surrounding the challenges, time, energy, and resources needed to bring the proposed Stamford project to completion, we have decided not to proceed with the move.
Hedge Funds Outbid In Federal Bitcoin Auction (FINalternatives)
Hedge fund Pantera Capital Management went bargain-hunting at the U.S. Marshals Service bitcoin auction Friday, and came up empty-handed. Pantera, which has become one of the most prominent bitcoin investors, said that the sale of the nearly 30,000 bitcoins—seized from online marketplace Silk Road—had the opposite of its expected effect, increasing demand for the virtual currency rather than sending its exchange price down.