Hedge Fund News: Daniel Och, Michael Novogratz & Phil Falcone

Page 1 of 2

Billionaire Dan Och’s Hedge Fund Firm Is Doing Great As His Funds Trail The Market (Forbes)
For billionaire Daniel Och’s hedge fund firm, Och-Ziff Capital Management, 2013 was a pretty good year. The publicly-traded hedge fund firm saw its assets under management balloon to $40.6 billion from $31.9 billion a year ago. Helped by rich performance fees, an increase in assets under management, and a decrease in reorganization costs, in the first nine months of 2013, Och-Ziff Capital Management earned $470.6 million after losing $881.9 million in the first nine months of 2012. Shares of Och-Ziff Capital Management soared in 2013. The stock increased by more than 55%. In the last two years, Och-Ziff Capital Management, which suffered large redemptions after the financial crisis, has seen its stock rise by more than 70%. The stock on Friday changed hands for $14.75 and remains well below its 2007 IPO price and even under its 2010 high, but investors who bought it in the last two years have enjoyed some good performance.

Och-Ziff Capital Management

Smart enough to avoid a zombie bite? (FT Alphaville)
Check out a moment of honesty from sartorial legend and hedge fund veteran Michael Novogratz of Fortress. One paragraph from Institutional Investor captures both the central contradiction of hedge funds and the misguided attempt by institutions to pretend it doesn’t exist: “It’s hard to teach young traders this,” he says, referring to macro investing. “You’re either good at it or you’re not.” Most asset managers won’t say they’re smart — at least, not in public — because their investors want to hear about a formal investment process that can be taught and repeated. They want alpha to be sustainable. Of course, if the process of delivering can be easily documented, others can – and will – copy it, and returns should go down over time.

Falcone In Line For $20M-Plus In Bonuses (FINalternatives)
Phil Falcone may not be a hedge-fund manager anymore, but he’ll still be paid handsomely next year. The Harbinger Capital Management chief, who accepted a ban from the hedge-fund industry last year, could be paid more than $21 million next year as chairman and CEO of Harbinger Group, the permanent-capital vehicle he set up in 2009. While Falcone’s deal with the SEC bans him from managing a hedge fund, he was permitted to continue to run the listed entity. Falcone will receive a $500,000 base salary for the fiscal year ending Sept. 30 of this year, and is eligible for up to $20.75 million in bonuses, according to a regulatory filing last month by Harbinger Group.

Brevan Howard shares spoils of £60.4m pay pot (CITY A.M.)
The UK arm of Europe’s largest hedge fund Brevan Howard divvied up a smaller £60.4m profit for its partners last year after a fall in revenues at the business. Brevan Howard Asset Management paid £36.4m in profits to members and £26.9m to cover operating expenses for the 12 months ending 31 March 2013, according to accounts filed at Companies House, on top of £38.4m paid in total as salary. The average number of partners at the firm during the year was 46, according to the accounts, though some are corporate entities rather than traders.

Major Philanthropist Refuses To Join Gates’ Charity Pledge Because It’s ‘Practically Worthless’ (Huffington Post)
Before wildly successful and generous hedge fund owner Robert W. Wilson took his life, Bill Gates tried recruiting him to pledge half his wealth to charity, an initiative the business mogul deemed “practically worthless,” BuzzFeed recently revealed in an exclusive story. Wilson, a philanthropist who donated about $600 million over the course of his life, committed suicide at 87 by jumping from his Central Park West apartment on Monday, according to The New York Times. In the days following his death, BuzzFeed obtained and published a number of emails Gates and Wilson exchanged in 2010 that elucidated Wilson’s disdain for the Giving Pledge.

U.K. Agency Struggles in Fight Against Insider Trading (Wall Street Journal)
Carl Linderum was getting ready for work one morning at his London home when he heard a pounding on his door. He figured the group of men outside were employees of his gas provider, there to badger him over a disputed bill. In fact, they were plainclothes police officers and agents from the U.K.’s financial regulator. They had come to arrest the 36-year-old trader, who ran a small hedge fund, for suspected insider trading. The arrests last February of Mr. Linderum and a colleague led to the collapse of their roughly $100 million hedge fund, Lodestone Investment Partners LLP. Seven people lost their jobs.

Who’s buying Hertz? (CNBC.com)

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!