Einhorn Insurer Enters Deal for Asia, Europe Growth After Slump (Bloomberg)
Greenlight Capital Re Ltd., the reinsurer that counts on hedge fund manager David Einhorn to oversee its investment portfolio, reached a deal to expand in Europe and Asia as the company seeks to improve underwriting. The reinsurer’s Irish subsidiary is partnering with Kattan Associates Ltd. to seek new business, Greenlight Re said Thursday in a statement that didn’t disclose terms. Greenlight Re has posted losses in five of the last six quarters, as Einhorn’s investments slumped and the company struggled to find profitable insurance contracts. The second-quarter net underwriting loss widened to $24.5 million from $13.3 million a year earlier.
Cramer: The Golden Price For You To Join Ackman And Buy Chipotle (CNBC)
Looking back in history, Jim Cramer says Bill Ackman is right about Chipotle. When Cramer compared the pattern of the three worst health scares in recent history — Jack in the Box in 1993, Taco Bell in 2006 and the KFC Chinese food contamination incident — he found that investors should buy the stock before the anniversary of the bad news to catch the bottom. “History is on Ackman’s side. Sometimes that is all that matters. I still believe that there will be a chance to get into this stock at a lower price, because the current quarter likely won’t be anything to write home about,” the “Mad Money” host said.
Ex-Guggenheim Hedge Fund Deimos Asset Management to Close (Bloomberg)
Deimos Asset Management, the multistrategy hedge fund that was previously housed within Guggenheim Partners, is closing its doors less than two years after its inception, citing a difficult fundraising environment. “Despite our many successes — including minimal drawdowns and our profitability on a performance basis for the year — we have decided to cease the investment management side of the business,” Loren Katzovitz, managing partner at Deimos, said in a statement. The fund began in early 2015 with an anchor investment from Ontario Teachers’ Pension Plan through a managed account platform and a strategic investment from Ares Management LP.
5 Big Dividend Stocks Billionaire John Paulson Loves (TheStreet)
“No one strategy is correct all the time,” John Paulson once said. But a dividend-focused approach drawing from his portfolio may not be a bad way to invest — or at least to go looking for ideas. Paulson, who founded hedge fund Paulson & Co. in 1994, has made a name for himself in mergers and acquisitions and event-driven investing. “Our goals are capital preservation, above average returns over the long-term, and low correlation to the markets,” the firm’s Web site reads. “All of our strategies are focused on compounding gains over the long-term.” Paulson’s tactics have paid off handsomely, resulting in millions and millions of dollars for clients. They have also boded well for Paulson himself — so well, in fact, that he had no problem giving up $400 million of his personal fortune in a donation to Harvard University in 2015, the institution’s largest gift ever.
Surge In Passive Strategies Will Be Boon – Hedge Fund Executive Okada (Reuters)
Money moving from hedge funds and other active investment managers to low-cost passive strategies will ultimately be a boon for professional money managers, according to Mark Okada, co-founder of Highland Capital Management. “All of this chasing of beta and passive management, et cetera, is just setting up for the next opportunity for alpha for active management,” Okada, also Highland’s chief investment officer, said on Thursday at the Alpha Hedge West conference in San Francisco. Beta refers to overall market gains, whereas alpha refers to the extra returns from a manager’s investment skill. Okada said Highland, an approximately $17 billion credit specialist based in Dallas, has produced strong returns in 2016, underscoring the value of investing in so-called alternative credit funds.
$1000 VISA Rewards Card For Referring A Friend Not Even The Shadiest Part Of California Hedge Fund’s Pitch (DealBreaker)
In the market for a new steward of your capital? Scared off by Bill Ackman’s love of burritos and Ray Dalio’s aggression towards wildebeests? Thinking that 60 percent monthly returns sounds totally legit? Looking to score a quick 1,000 bucks? Look no further than Young Capital Management! Carlsbad, California-based Young Capital Management has announced the launch of a fixed-income hedge fund that promises returns 60% a month to investors. In a statement, Young Capital said that returns are generated by buying and selling private contracts and private commercial transactions direct from refineries in defined industries – mainly petroleum products, minerals & mining, agriculture, energy, transportation, banking, finance and lending, real estate, and technology…
Hedge Funds Are Crowding Into These Stocks (CNBC)
Investors are always looking for ways to follow the so-called smart money and outperform. The strategy of buying the most crowded stocks owned by hedge funds beats the market, according to hedge-fund tracking firm Symmetric’s latest report. “Stocks where hedge funds own a large percentage of the float tend to outperform the SPY [S&P 500 ETF] by about 3.6% a year,” the firm wrote in a note to clients Thursday. “Some of the worst hit stocks may offer opportunities for buying by investors who seek to profit from the historical outperformance of crowded hedge fund names vs. the market,” the note said.
