Billionaire Hedge Fund Manager David Tepper Is Having A Huge Year (Forbes)
Billionaire David Tepper’s hedge fund firm, Appaloosa Management, celebrated its 20th anniversary in 2013 and it’s turning into a year to remember for the former Goldman Sachs Group, Inc. (NYSE:GS) trader. Tepper’s big Palomino hedge fund posted net returns of 37.86% this year through the end of November. The Palomino fund had a strong month in November, when it returned 4.86%. With $20 billion under management, Tepper has been a loud and consistent stock market bull, saying equities were the place for investors to be. The Standard & Poor’s 500 index returned 29.1% this year through November. In a recent interview with Bloomberg Television, Tepper said his fund had made a successful bet on airline stocks that had helped its returns.
British hedge fund GLG settles SEC charges over inflated assets, fees (Reuters)
British hedge fund adviser GLG Partners LP and a former holding company agreed to pay about $9 million to settle U.S. regulatory charges that internal control failures had caused them to inflate a fund’s assets and collect excessive fees. The U.S. Securities and Exchange Commission alleged that GLG Partners LP had, between November 2008 and November 2010, overvalued by about $160 million, or 60 percent, a stake that one of its funds held in an emerging markets coal mining company. Thursday’s settlement arose from the SEC’s Aberrational Performance Inquiry, a program that began in 2009 to analyze the performance data of thousands of hedge fund advisers and identify funds with suspiciously high returns.
Bank of America’s Pays $131m Settlement for Merrill Lynch Mortgage Probe (IBTimes)
Bank of America Corp (NYSE:BAC) has stumped up $131m in settlement payments after the US regulator found that its Merrill Lynch unit misled investors about its mortgage securities. According to an US Securities and Exchange Commission statement, the ML unit misled investors about mortgage securities it structured and sold, by having the interest of maximising profit for its hedge fund partners rather than its retail buyers. The SEC added that ML failed to tell investors that hedge fund firm Magnetar Capital exercised significant influence in choosing collateral underlying two $1.5bn (£917,650, €1bn) collateralised debt obligations (CDO).
Hedge Fund Lions’ Den: Emerging managers struggle to understand investor motivation (Risk)
The double meaning of what investors say and what they really mean is explored in episode five of Hedge Fund Lions’ Den. Luke Ellis, president of Man Group, enlightens Charles-John (CJ) Donley and Robert Toffel from Strategis Capital Management on the hidden meaning of investor responses. Neil Meadows of Laurentia Funds talks with Andrew McCaffery of Aberdeen Asset Management about returns and risk management while Stanley Fink, CEO of ISAM, quizzes Donley and Toffel about the BNP Paribas SA (EPA:BNP) note on offer.
U.S. hedge fund Golden Tree increases stake in Postmedia (FinancialPost)
U.S. hedge fund Golden Tree Asset Management LP increased its stake in Postmedia Network Canada Corp. last month and now owns 39% of the newspaper chain’s shares. The New York City-based fund is Postmedia’s largest shareholder and in November it purchased a further 4% of the company’s Class B shares, according to a Dec. 4 regulatory filing. Golden Tree, which has a representative on Postmedia’s board of directors, said in the filing it increased its holdings of Postmedia shares by 1.6 million.