Hedge Fund News: George Soros, John Paulson & Brevan Howard

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Ackman Sues Uncle Sam Over Fannie, Freddie (BidNessEtc)
Bill Ackman’s Pershing Square Capital has sued the US Government, demanding revisions to profit distribution at the two Government Sponsored Entities (GSEs)— Fannie Mae (FNMA) and Freddie Mac (FMCC). According to a 2012 revision made by the US Government on profit distribution of the two bailed-out companies, the US Treasury receives all profits generated by the two companies. Ackman’s hedge fund is the largest stakeholder in the two mortgage companies that went down under in the housing market crisis, owning a 10% stake in each. His ownership does not see any gains from the two companies since the government sweeps all profits generated following the $187.5 billion bailout back in 2008…

Hedge Funds in Your 401(k): Do They Fit? (WSJ)
“Alternative” investments have their place. But where is it? Many asset managers argue that nontraditional investments belong in your 401(k) or other retirement account. But with giant pension plans like the California Public Employees’ Retirement System cutting their exposure to hedge funds, and the Securities and Exchange Commission examining how alternative funds are managed, retirement investors should open their eyes before they open their wallets.

Faber Thinks Gold Has Bottomed (TheGuruInvestor)
Marc Faber of the Gloom Boom & Doom Report thinks geopolitical issues will become more important for US markets, and says he thinks gold has bottomed. Faber tells FOX Business Network that the geopolitical issues may well stretch beyond Iraq and Gaza. “There has been some reaction [in Europe] but there hasn’t been much reaction in the U.S. yet,” he says. “I think that geopolitical issues will become more important. At the present time what is dominating the geopolitical discussion is what is happening in the north of Iraq, ISIS and in the Gaza stretch and in Syria but it could spread out to Saudi Arabia…

How David Tepper played ‘nervous time’ market (Yahoo)
David Tepper wasn’t joking when he said it was “nervous time” for the stock market. The billionaire head of the Appaloosa Management hedge fund rattled the markets in May, when he told attendees at the SALT Conference in Las Vegas that he was paring back his equity positions. “I’m not saying go short, I’m just saying don’t be too fricking long right now,” he told attendees in remarks that went viral and immediately sent a shiver into the market.

Brevan Howard Cuts Risk After Losses, Returns to Roots (WSJ)
Brevan Howard Asset Management LLP’s flagship $26.5 billion hedge fund has more than halved its risk levels this year and moved back toward interest rate trading, the specialty of its founders, during a testing 2014. The fund, managed by secretive billionaire Alan Howard and renowned for its profits during the credit crisis, lost money every month in the first half of this year, hit by losses on Japanese equities, U.S. interest rates and currencies such as the Canadian dollar. The fund has now shifted much of its focus back toward interest rate trading, Mr. Howard’s bread and butter, following his time as a developed market rates trader at Credit Suisse Group AG (NYSE:CS).

Recommended Reading:

Allergan, Inc. (AGN)’s Top Shareholders Sold The Stock Amid Takeover Talks

Apple Inc. (AAPL), KKR & Co. L.P. (KKR), Navient Corp (NAVI): Leon Cooperman’s Top New Stock Picks

Tesla Motors Inc (TSLA): Top Hedge Funds Bullish on the Company



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