Fortress Investment Hires Ex-Artradis Manager David Dredge (Reuters)
Fortress Investment Group LLC (FIG)
has hired David Dredge as co-chief investment officer at its convexity strategies group, two sources familiar with the matter said. Dredge earlier worked as a portfolio manager at Artradis Fund Management, once Singapore's biggest hedge fund manager specializing in volatility funds. Artradis, which managed peak assets of $4.9 billion, closed earlier in 2011. Dredge, former deputy global head of local markets at Royal Bank of Scotland Group Plc (RBS)
, had joined Artradis in March 2009.
EU Banks Move to Share Risks With Hedge Funds and Others to Preserve Capital (FT)
Banks are striking deals with private equity groups, hedge funds and insurance companies in an effort to preserve their precious regulatory capital.
A growing number of investors is moving to provide beleaguered lenders with special targeted transactions to help them share their risks – for lucrative fees – through a fast developing class of “regulatory capital relief” funds.
Blackstone to Co-Invest with China Investment Corp in Distressed Property Loans (WSJ)
In another sign of China Investment Corp
.'s interest in overseas real estate, the sovereign wealth fund is considering teaming up with Blackstone Group
LP to buy a stake in a portfolio of distressed property loans from Royal Bank of Scotland Group PLC, people familiar with the matter say. CIC and Blackstone "may be co-investing" in the deal, a person with knowledge of the matter said, adding that the sum CIC is considering putting in isn't "a massive amount." It isn't clear whether a deal with CIC will be reached.
Blackstone Group Looks to Raise $3 Billion for Its First Energy Fund (Bloomberg)
Blackstone Group LP (BX) is seeking as much as $3 billion for its first energy fund, aiming to become the biggest diversified private-equity firm investing in the industry, according to two people with knowledge of its plans. The target tops those for natural-resources funds in the works at KKR & Co
. and Apollo Global Management LLC
, said the people, who asked not to be identified because the information is private. Blackstone, which started energy investing in 1997 through the purchase of oil refiner Premcor Inc., has initial commitments of $1 billion for the fund, President Tony James said yesterday on an earnings conference call with the media.
Hedge Funds Face Possible Investor Pruning (WSJ)
After a turbulent 10 months, hedge funds are bracing to hear whether jittery investors will want their money back. As the year comes to a close, some investors say they are reviewing how their managers have performed through the recent volatility and are making decisions about whether to cash out of underperforming funds. Investors who want out before the end of the year in most cases need to give 45 or 60 days' notice of their redemptions, setting up a critical period for managers who have suffered significant losses.
Stonehenge Capital Hedge Fund Reports Strong Returns (IBTimes)
Florida-based asset management firm Stonehenge Capital Management (SCM) announced Monday that its new direction-neutral hedge fund strategy called Forward Curve Realignment (FCR) resulted in strong returns one month after its launching. FCR returned 0.3 percent in its first month of trading during one of the most turbulent market conditions, SCM Manager Steven Michael said. FCR, which debuted on Sept. 1, focuses on investing in a variety of sectors (energy, grains, metals, softs and livestock) and markets to take advantage of reversions to equilibrium of the forward curve following distortions brought about by large capital flows.
Hedge Fund Managers Look at India Sell-off as Opportunity (FT)
Local fund managers in India are brushing off bad news and expecting to profit from the exit by many foreigners from the country’s stock markets, according to a report in Monday’s FTfm. Investors anxious to minimise risk have been selling Indian stocks, explains Ajit Dayal, chairman of Quantum Asset Management. “Therefore the markets are exposed to near-term downside risk [but] for long-term value investors, this sell-off is a buying opportunity.”
European Fund Managers Brace for US Invasion (WSJ)
American fund managers are circling the U.K. and euro zone ready to pick off fund managers put up for sale as a result of the European sovereign debt crisis.
Industry experts say the U.S. managers are waiting to assess the impact of the final bailout agreement, currently scheduled for Wednesday, to identify which European banks might be forced into fire sales. Steve Meyer, head of SEI's investment manager services division, told Financial News: "It cannot go unnoticed that some European competitors have had difficulties which might make them attractive acquisitions."