Einhorn’s Greenlight Increases Bet on Elekta Share Drop (Bloomberg)
David Einhorn’s hedge fund Greenlight Capital Inc. increased its bet that shares of Swedish medical-equipment maker Elekta AB will decline. Einhorn sold short 2.35 percent of Elekta’s shares as of Jan. 16, according to data published by the Swedish Financial Supervisory Authority. On Jan. 4, Greenlight’s short position was 1.8 percent, according to the data. Elekta fell 0.5 percent to 99 kronor at 9:26 a.m. in Stockholm. The stock has risen 27 percent in the past year, giving the company, which is based in the Swedish capital, a market value of 38 billion kronor ($5.8 billion).
Relative value arbitrage leads hedge fund capital to new record (HedgeWeek)
Steady inflows and performance-based gains increased hedge fund assets by USD60bn in the fourth quarter, bringing total industry capital to a record USD2.25trn, according to the latest HFR Global Hedge Fund Industry Report. Hedge funds posted performance gains in 4Q12, as global financial markets struggled with the political and macroeconomic uncertainty which had adversely impacted performance throughout much of the year, including the European banking and sovereign debt crisis, and the US fiscal cliff negotiations.
Odey plots UCITS version of flagship European hedge fund strategy (InvestmentWeek)
The launch of the new Dublin-domiciled fund will mark the first time UCITS investors have been able to access a long/short strategy run by Odey himself. First launched in 1992, the $1.8bn Odey European fund returned 24% last year – the sixth best hedge fund return globally, according to Bloomberg data. The fund had a tough 2011, shedding 20%, but the vehicle has produced compound annual gross returns of 13.4% since inception, according to figures from Odey.
Among Asia’s hedge funds, smaller was better last year (Business-Standard)
For those investing into Asia’s hedge funds last year, smaller was better. The region’s largest hedge funds – those managing more than $500 million – delivered weaker returns on average than nimbler, small to medium-sized funds, according to fund research and people with knowledge of the individual funds. In a year when several Asian stock markets rallied, many bigger hedge funds failed to beat benchmark returns. Blue chip funds such as Ortus Capital Management and Senrigan Capital lost money, while high-profile launches Azentus Capital and Dymon Asia ended the year barely in the black, said people familiar with their returns. Smaller hedge funds such as Factorial and the Splendid Asia macro hedge fund, however, made their investors richer.
Fixed-income hedge fund assets emerge on top (PIOnline)
Long/short equity hedge fund strategies lost industry dominance for the first time in 2012. Assets invested in fixed-income hedge funds exceeded those invested in equity strategies as of Nov. 30 for the first time thanks to a four-year growth spurt fueled by institutional investors. Fixed-income/credit hedge funds managed an aggregate $796.9 billion as of Nov. 30 compared with $788.9 billion invested in equity strategies, according to data from eVestment Alliance LLC’s hedge fund database.
Hedge funds disappoint as shares roar on (CityAM)
COSTLY hedge funds failed to keep pace with run of the mill stock funds last year, as equity markets proved more profitable than the best performing hedge strategies on average, data shows. Statistics from the EDHEC Risk Alternatives Index show the most profitable hedge fund strategies for investors trailed US equity market returns by almost three percentage points on average in 2012.
Pacific Group to Convert One-Third of Hedge-Fund Assets to Gold (BusinessWeek)
The Pacific Group Ltd., founded by a former PaineWebber Inc. trader, is converting one-third of its hedge-fund assets into physical gold, betting that prices will go up as governments print more money to pay off debt. The Hong Kong-based asset manager plans to take delivery of $35 million worth of gold bars that can be traded on the London Bullion Market Association and other international markets, William Kaye, its founder and chief investment officer, said in a telephone interview on Jan. 18. It has secured vault space at Hong Kong International Airport to store the gold, he said.