Billionaire George Soros Braces for a Correction in U.S. Equities (SECFilings)
Many billionaire investors have been bracing themselves for a market correction, but George Soros may be worth an extra look. After making a name for himself in the 1990s successfully betting against a central bank, Soros has developed an eye for macroeconomic changes in the global financial markets. Recently, he has been betting that the U.S. equity markets are due for a big correction. Soros Fund Management LP, the billionaire investor’s hedge fund, increased its holdings of S&P 500 put options by six times this quarter.
A hedge-fund reinsurer’s perspective on the market: Past, present and future (PropertyCasualty360)
It’s easy, and perhaps even commonplace, to label anything in the reinsurance industry with the words “hedge fund” attached to it as “alternative capital” and categorize it in the same bucket as every other new-capital approach. But just as traditional reinsurers employ a number of different strategies when they do business, so too do players backed by capital from non-traditional sources.
Hedge fund investment boosting property values, says Kinloch Partners (HedgeWeek)
Hedge fund and real estate investment trust (REIT) investment in residential real estate is helping boost property values and creating rental inventory in Nashville, according to Bruce W McNeilage, founder of Kinloch Partners. McNeilage made his remarks as part of a panel presentation titled “Emerging Housing Trends: Converting Single Family Homes to Long-Term Rentals” at the Tennessee Housing Development Agency’s Governor’s Housing Summit.
Hedge funder Mark Kingdon buys penthouse at tony Upper East Side co-op for $30.9M (NYDailyNews)
Hedge fund kingpin Mark Kingdon is now king of his very own Upper East Side palace. The Kingdon Capital founder and his wife Anla Cheng Kingdon purchased a spectacular 10-room penthouse with a wraparound terrace at 1107 Fifth Ave. for a whopping $30.9 million, records show. The deal for the pad marks the end of what had become a lengthy saga for the apartment’s previous owner, the estate of Monique Uzielli, who bought it in 1958 and lived there until she died in 2011 at 98 years old.
Ferguson, the Foreclosure Crisis and America’s Hedge-Fund Landlords (BillMoyers)
The events in Ferguson last month laid bare many of the tensions that are simmering in America. In a report for The New York Times’ Dealbook, Matthew Goldstein adds another to the list: Americans are still reeling from the 2008 fiscal meltdown, the resulting crash in the housing market and monied interests taking advantage in minority neighborhoods like Ferguson’s.
Catalyst for higher rates (CNBC)
Fortress Main Hedge Fund Said to Fall 2.3% in Last Month (BusinessWeek)
Fortress Investment Group LLC (NYSE:FIG)’s main macro hedge fund lost 2.3 percent last month as its wagers on the economy faltered, according to a person familiar with the matter. The August decline brings losses this year in Fortress Macro Fund Ltd. to 5.8 percent, said the person, who asked not to be identified because the returns aren’t yet public. Tudor Investment Corp.’s main fund was up 0.3 percent last month, paring the year-to-date decline to 2.4 percent, according to another person with knowledge of the returns.
Hedge fund Marcato sees Life Fit shares at $70 if assets sold (Reuters)
Hedge fund Marcato Capital Management, the largest investor in Life Time Fitness, Inc. (NYSE:LTM), said on Friday the gym operator’s share price could climb to $70 if it spins off some of its real estate assets. Life Time said last month it was thinking about converting some real estate assets into a real estate investment trust, which helped push up shares in late August. On Friday, Life Time stock jumped 6.3 percent to $50.04 after Marcato’s comments.
Soroban Launches New Fund, Posts Big Gains in Q2 (InstitutionalInvestorsAlpha)
Soroban Capital Partners has launched a new hedge fund and is expecting to raise about $1.5 billion for the vehicle, which will focus on the firm’s best investment ideas. Soroban, a New York-based long-short equity firm, debuted the Soroban Opportunities Fund on August 1. The firm told clients in a recent letter that Soroban partners will invest $50 million of their own money, and they expect to hard close the fund “over the next few months,” adding that the fund is “significantly oversubscribed.”…
Herbalife’s Nutrition Clubs Defy Short-Seller Ackman’s Attacks (MoneyNews)
New York hedge fund manager William Ackman says Herbalife Ltd. (NYSE:HLF) is a pyramid scheme that exploits the poor. He has taken a $1 billion bet against the company’s stock and spent millions on research to attack the nutritional supplements seller, including making a video showing former distributors who claim they were deceived and lost money trying to sell its products. Yet a visit to some of the clubs that have been set up to dispense the company’s shakes, teas and other items, largely to the Hispanic community in the U.S., shows that it has fans…
First Opportunity Fund Announces Redemption of Hedge Fund Positions (HedgeCo)
First Opportunity Fund, Inc. announced today that it had given its notice of redemption with respect to its remaining hedge fund investments. In July of this year, the Fund was notified of proposed structural changes to both of its remaining hedge fund investments. The Fund’s investment advisers reviewed the proposed changes and determined that the hedge funds would no longer satisfy the advisers’ original investment thesis. Consequently, the advisers gave notice to the hedge fund manager of their decision to redeem the Fund’s hedge fund investments…
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