Miller: No ‘extraordinary value’ left in US markets (InvestmentWeek)
Legg Mason’s Bill Miller is struggling to find the ‘extraordinary’ value in the US he did last year, and said equity markets could rise even higher in 2014. A number of stocks Miller added to his Opportunity fund last year have tripled or quadrupled in value, but he does not expect to see opportunities for these kinds of returns moving in to 2014. “A year ago, you could have bought Netflix, Inc. (NASDAQ:NFLX) at $60, and we did, and now it is up at $300. You cannot do that anymore,” he said. “Overall, the market is approaching fair value for the first time in five years. It is unusual for markets to remain fair value for a long time, they usually either drop to undervaluation or become overvalued.”
Malta is ‘most favoured European domicile’ in hedge fund awards (MaltaToday)
For the first time, Malta has won the coveted award of Europe’s favoured domicile in the Hedge Fund Service Provider rankings 2013, a significant change to the old guard in this category. The choice of most favoured domicile was selected as the biggest change over 2012 results by Hedge Funds Review, the leading publication for the alternative investment industry. Malta rose from third position in 2012 to first place this year. Voting in the survey was conducted online between August 27 and October 14. Eligible to vote were individuals from single-manager hedge funds or FoHF organisations and investors, such as family offices, pension funds, sovereign wealth funds, insurance companies and asset allocators, underlining Malta’s popularity with a broad range of hedge fund formats and professionals.
New hedge fund managers can score big gains, or losses: survey (Reuters)
Wealthy investors may get more bang for their buck if they invest with brand new hedge fund managers, but they must also have a strong stomach to tolerate potential losses, a study released on Wednesday shows. Data from research firm Preqin shows that the average new hedge fund manager who set up a firm within the last six years delivered average annualized returns of 8.80 percent in the first three years of trading. That compares with a gain of 5.38 percent for the new funds launched by established firms.
Traders assure bitcoin boosts ‘the best performing hedge-fund in history’ (VoiceOfRussia)
Today, Japanese Mt. Gox, the highest profile cryptocurrency exchange, the once-obscure online money, traded at $1,020—and the rate is still climbing. One bitcoin is worth over a thousand dollars. And at least one financial institution – crypto-hedge fund, Exante Ltd, claims it’s gotten filthy rich due to its rise. The rapid rise in bitcoin’s value has been abetted by a fast-growing number of vendors who accept this cryptocurrency—its days as illegal drug money are over. Bitcoin may be used to pay for college or sandwiches or reserve a seat on a spaceship.
Once giant FX Concepts’ assets now just $2 million: court filings (BRecorder)
FX Concepts, once the largest currency hedge fund in the world, has less than $2 million in assets now and $79 million in liabilities, according to the latest court filings on Monday. The fund filed for bankruptcy protection more than a month ago as its assets dwindled due to market losses and redemptions from major clients. At its peak in 2007, the $14 billion that FX Concepts had in assets under management made it the largest currency hedge fund in the world. The latest court filings showed FX Concepts has $1.62 million in assets and about $79.2 million in liabilities. The biggest part of those assets is a $1.61 million loan note from FX Concepts Chairman and Chief Investment Officer John Taylor.
US hedge fund sold stake in Britain’s Co-op Bank after Paul Flowers scandal (VCPost)
Aurelius Capital Management, the biggest hedge fund investor in the Co-op Bank, offloaded almost all of its stake in the London bank to hedge fund firm Perry Capital. The stake sale was made last week, just days after the scandal about the bank’s former chairman Reverend Paul Flowers erupted. This was according to a report published by This Is Money. The sale was thought to be executed because of economic reasons. Co-op bond prices have increased since a GBP1.5 billion funding black hole was revealed this month, the report said. A rescue package for the funding black hole will be voted on by bond holders. If approved, the investment will be converted to bank shares when it is floated on the stock market in 2014…
A Hedge Fund is Buying Shares in These 2 Biotech Stocks (WallstCheatSheet)
One of the best ways that investors can try to decide which stocks will make for a good investment is to look at what the pros are doing. This can be done by examining a few official filings such as 13F, 13D, and 13G reports. 13F filings are done quarterly and show which positions hedge funds have taken. Reports of 13D and 13G are done more often but only when a fund has taken a position of at least 5 percent. One of the best performing biotech groups over the past few years has undoubtedly been Baker Brother Advisors. The Baker Brothers are well known for their early investments in ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), Pharmacyclics, Inc. (NASDAQ:PCYC), and Seattle Genetics, Inc. (NASDAQ:SGEN).
Hedge fund ‘VIP’ list (CNBC)