Oil Hedge Fund BlueGold to Liquidate (CNBC)
BlueGold Capital, an oil-focused fund that made headlines in 2008 by calling the peak of the market, is liquidating after four years of trading — the last of which put it at the bottom of commodity hedge fund rankings. BlueGold is conducting an “orderly closure” of its business and expects to return about 98 percent of investor capital before the end of the year, the London-based fund said in a letter to investors on Thursday, a copy of which was obtained by Reuters.
Ackman Says Canadian Pacific Lost Share Under CEO Green (Bloomberg)
China Hedge Fund Credence to Boost Stocks on QFII Quota (Bloomberg Businessweek)
Credence Oriental Trade Enterprise Ltd. (CRDOTPL), a China hedge fund that has beaten 98 percent of its rivals, will boost its Chinese stock holdings on the prospect of economic expansion and increased equity purchases by foreigners. Credence is increasing the percentage of yuan-denominated A shares and Hong Kong-listed H shares it holds in its portfolio to 70 percent from 50 percent, while reducing bets on commodities, Tom Tang, co-manager of the China-domiciled fund, said in a phone interview from Hong Kong on April 4.
Dan Loeb’s Fight with Yahoo $YHOO Goes Digital (InsiderMonkey)
Dan Loeb‘s fund Third Point has a stake in Yahoo (YHOO) worth roughly 5.8% of the company. Since initiating its position in the company, Loeb has fought for a change in management, calling for the resignation of founder Jerry Yang and Board Chairman Roy Bostock. Yang left the company in January while Loeb will step down after the annual shareholders’ meeting later this month along with a few other shareholders. This change in the company’s management will mean that none of the board members that voted against Microsoft (MSFT)’s $45 billion buyout offer in 2008 will remain.
Hedge Fund Association endorses JOBS Act: “an action whose time has come” (Opalesque)
Opalesque Industry Update – The Hedge Fund Association, an international organization that represents hedge funds, service providers and investors, praised President Barak Obama for signing the Jumpstart Our Business Startups (JOBS) Act and provisions in it that will allow hedge funds to advertise responsibly to investors through normal channels. Emerging manager hedge funds are expected to benefit from the new law, according to the Hedge Fund Association (HFA).
Falcone’s LightSquared Considers Bankruptcy (InsiderMonkey)
Phil Falcone’s Harbinger Capital Partners owns the lion’s share of LightSquared, the wireless venture that has been struggling to receive federal approval to implement a mobile technology that uses global positioning systems to provide voice and data services. His fund has invested over $3 billion in the company so far (roughly 60% of its money) and seen next to nothing in returns. Now that the value of LightSquared has been revalued to just a little over half a billion dollars, Falcone’s Harbinger is losing even more. It is down 47% thanks largely to its investment in the wireless company.
Hedge Fund Launch: SG Alpha Launches Ukraine-dedicated Fund (HedgeCo.net)
Steffen Gruschka’s Emerging Europe investment boutique has launched the Ukraine-dedicated L/S equity fund with seed capital from European Institutional Investors. The Euro 2012 gives Ukraine an immense opportunity to boost its international profile and raise investors’ awareness of the country that Mr. Gruschka has been investing in for more than a decade already and that trades at a low single digit p/e.
Ackman and Others Work to Take Burger King Public Again (InsiderMonkey)
“Just 18 months after being taken private in a leveraged buyout, Burger King Worldwide Holdings, one of the world’s largest fast-food chains, plans to list its shares on the New York Stock Exchange through a merger with Justice Holdings, an investment company based in London,” reports the New York Times. “Under the terms of the deal, 3G Capital, the little-known buyout shop that bought Burger King in 2010, will receive about $1.4 billion in cash and continue to own about 71 percent of the company. Justice Holdings will own the rest.” Bill Ackman’s Pershing Square is expected to own roughly 10% of the newly public Burger King.
Hedge fund firm Odey parts company with banks analyst (Reuters)