Billionaires Like Icahn, McLendon Sniff Out Value In Energy (Forbes) Sometimes the most attractive energy assets aren’t found in the ground but listed on the stock exchange. Billionaire businessman Carl Icahn is one investor seeing value in energy companies. The hedge fund manager recently announced his purchase of 60 million shares in the Canadian oil and gas producer, Talisman Energy. Icahn has built up a nearly 6 percent stake in the Calgary-based energy producer, worth a whopping $300 million. Even though the company has been a perennial underperformer, after Icahn’s tweet, the stock climbed to the highest level in more than a year.
Man Group Reports First Net Inflows in 2 Years (NYTimes) The Man Group, the world’s largest publicly traded hedge fund, reported its first quarterly net inflows of money in two years on Thursday, as clients became more confident about a global economic recovery. Net inflows were $700 million during the three months ended Sept. 30, including fund investments of $4.1 billion and redemptions of $3.4 billion, the firm said. Clients poured more money into funds at the company’s GLG Partners unit, while AHL, the company’s largest fund, continued to struggle.
The hedge fund industry’s $3 billion compliance burden (eFinancialNews) Hedge fund managers have spent more than $3 billion since the financial crisis on compliance costs to meet new global regulations, with smaller managers facing the biggest burden, according to a new survey. The report, which was produced by KPMG alongside trade bodies the Alternative Investment Management Association and the Managed Funds Association, found that the average spend on compliance was at least $700,000 for small fund managers (assets under $1 billion), $6 million for medium-sized fund managers (between $1 billion and $5 billion in assets) and $14 million for large fund managers (over $5 billion).
Hedge fund firm Egerton shuts door to new money (Reuters) Hedge fund firm Egerton Capital has closed its doors to new money, two of its investors said, after inflows and performance gains swelled its assets by 80 percent in a year. London-based Egerton, headed by veteran stock picker John Armitage, closed its long-only fund to new investments in September, the investors said. This followed a decision to stop accepting more money into its long-short hedge fund towards the end of last year, the investors said. Long-only funds are restricted to betting that financial instruments will rise, while long-short funds can also take bets that they will fall.
Hedge funds head into the advertising fray (FloridaWeekly) An 80-year-old securities law was recently lifted by the Securities and Exchange Commission. Any SEC rule that remained in place for 80 years must have had some mighty good reasons to have remained intact — that is until commissioners agreed there were even better reasons for the rule to be lifted. The SEC’s commissioners recently voted 4-1 to lift the ban on “general solicitation” by hedge funds and other private funds. Now, these funds can enter the world of advertising, sponsoring events, cold-calling, linking on social websites and freely speaking to the public. Hedge funds will be able to enter the advertising world of mutual funds and financial advisers.
Saif Partners hedge fund launch imminent (AsianInvestor) Private equity firm Saif Partners will come to market this month with its first hedge fund, a Greater China-focused long/short strategy targeting $500 million, say sources. The SPQ Asia Opportunities Fund, will invest in companies with substantial exposure to the Chinese economy through either having earnings or a large base in Greater China, according to documents seen by AsianInvestor. The strategy may also invest in firms that derive revenues or earnings from or are located in other regions, "so long as they are market leaders in their sector"...