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.
Rubenstein: Private equity & hedge funds attractive (CNBC.com)
Singer Says Argentina Won’t Negotiate as Default Looms (Bloomberg)
Elliott Management Corp. said Argentina is refusing to negotiate a settlement over defaulted bonds, casting doubt on the country’s ability to avoid another debt debacle after a U.S. court blocked all its note payments until a deal is reached. “Argentina’s professed willingness to negotiate with its creditors has proven to be just another broken promise,” Jay Newman, a money manager at the hedge fund run by billionaire Paul Singer, said in a statement today. “There are no negotiations underway, there have been no negotiations, and Argentina refuses to commit to negotiations in the future.”
Rand Paul Slams ‘Fat Cats’ as Hedge Fund Ranks Among Top Donors (Newsmax.com)
Senator Rand Paul has preached the political peril of being too close to financiers as he gears up for a likely 2016 presidential bid. “We cannot be the party of fat cats, rich people, and Wall Street,” the Kentucky Republican told the audience at the Freedom Summit in New Hampshire in April. “Corporate welfare should once and for all be ended.” At the same time, the founders and employees of Mason Capital Management, a $13.6 billion New York hedge fund, have become leading contributors to Paul’s political aims. The hedge fund has offices in London and San Francisco and offers clients offshore investments through a limited partnership in the Cayman Islands, among other strategies.
Fortress Investment Group Named Institutional Investor’s Hedge Fund Manager of the Year (MarketWatch)
Fortress Investment Group LLC was named “Institutional Hedge Fund Manager of the Year” by Institutional Investor at the magazine’s 12th Annual Hedge Fund Industry Awards. The award recognizes outstanding achievement across Fortress Credit and Liquid Markets hedge fund strategies, including the firm’s flagship Drawbridge Special Opportunities and Fortress Macro funds. Fortress has previously been recognized by Institutional Investor as “Discretionary Macro-Focused Hedge Fund of the Year” for 2012, and “Credit-Focused Fund of the Year” for both 2011 and 2010.
Sandell Recommences Hostilities With FirstGroup, Bob Evans (FINalternatives)
Activist hedge fund Sandell Asset Management has been quiet for a few months. But the New York-based firm is once again firing upon two of its targets, FirstGroup and Bob Evans Farms Inc (NASDAQ:BOBE). Sandell has called on FirstGroup to split its U.S. bus operations, including Greyhound Lines, from its British rail and bus operations, complaining that its current structure has led shares to seriously underperform peers. Given that unhappiness, it’s perhaps no surprise that the hedge fund thinks that CEO Tim O’Toole makes too much.
Algebris among top investors in Italy’s Fineco bank (Reuters)
Hedge fund Algebris Investments will emerge as one of the top shareholders in Fineco bank, controlled by Italy’s No.1 lender UniCredit, following the online broker’s initial public offering, Algebris CEO Davide Serra said on Monday. Fineco, Europe’s largest online broker, last week priced its IPO at 3.70 euros a share in an offer than was three times over-subscribed by investors. The bank is due to debut on the Milan stock exchange this week, with an initial market capitalisation of 2.24 billion euros, Italy’s second-biggest market listing so far this year.
