Paulson gains as ‘Mooch’ rotates to stocks (Business Times)
Hedge Fund manager John Paulson is one of the biggest beneficiaries of a great rotation from bonds to stocks at the firm led by Anthony “the Mooch” Scaramucci. Mr Scaramucci’s SkyBridge Capital II LLC, a New York-based adviser that allocates client capital to outside money managers, has been moving cash from income-producing hedge funds, such as those that buy bonds, to event-driven funds that bet on stocks. SkyBridge’s main fund of funds steered US$490 million, or 15 per cent of its invested capital, to Mr Paulson’s funds in the six months ended Sept 30, regulatory filings show, as the billionaire manager’s main strategies surged.
Cohen’s SAC ends life as hedge fund with double-digit returns (Reuters)
Billionaire investor Steven A. Cohen‘s SAC Capital Advisors is ending its life as a hedge fund with a 20.10 percent gain this year, marking one of the industry’s best returns even after SAC pleaded guilty to insider trading charges, a source familiar with the numbers said. Cohen reported the number to outside investors on Monday as he prepares to stop managing money for wealthy clients after his firm last month agreed to plead guilty to insider trading and pay a $1.2 billion penalty. One of the conditions of the plea agreement is that Cohen must wind down the business of managing money for outside investors. The fund said it gained a net 1.88 percent between December 1 and December 27, the source said.
David Tepper’s Appaloosa Funds Up Around 38% 2013 Could Be Another Banner Year For Him (Jewish Business News)
In 2012 David Tepper succeeded in achieving a 30 percent gain on the $20 billion that he managed, which entitled him to pay himself $2.2 billion in salary and bonuses then, as well as placing him very much at the top of the ladder on the highly regarded Institutional Investor Alpha’s annual “Rich List” made up of the top 25 hedge fund managers. Now all indications are that in 2013 Tepper may be set to do even better, with his Palomino fund reportedly showing an increase of 38 percent, after management fees for the first 11 months of 2013, up to the end of November. With no signs of the fund losing any impetus whatsoever in December, then David Tepper looks like being one of the few fund managers to register a higher return on investments than the formidable 29.1 percent gain that the S&P 500 itself has reported in the same period.
Third Point Capital Takes Stake In Hertz Global Holdings, Inc. (NYSE:HTZ) (WallStreetPR)
Investor Daniel Loeb through his investment vehicle Third Point Capital initiated a stake in Hertz Global Holdings, Inc. (NYSE:HTZ). The hedge fund’s stake is valued at less than 5 percent of the U.S. No. 2 car rental company. The activity of this hedge fund offers insightful information about the investment health of Hertz Global Holdings, Inc. as a stock. Everyday investors who track hedge funds have typically outperformed their index-focused counterparts. This explains why we shout take a critical look at this latest activity on this stock.
Gottex Readies Fund To Let Main Street Invest Like Wall Street (Financial Advisor Magazine)
Hedge fund firm Gottex Fund Management is readying a new mutual fund that will let retail clients sample asset classes normally reserved for millionaires, like hedge funds, private equity and real estate. The Gottex Endowment Strategy Fund (GTEAX) will be available for purchase later this week after it invests its $100 million in seed capital from the Swiss firm by December 31. Gottex, founded by Joachim Gottschalk in 1992, becomes the latest firm to tap into growing demand from investors for portfolios that promise to make money in good times and bad by being less correlated to broader markets.
Hedge Fund Investor Blackstone Buys Up $200 Million In Crocs Shares (HedgeCo.net)
An affiliate of hedge fund investor giant The Blackstone Group L.P. (NYSE:BX) has acquired $200 million in newly issued series A convertible preferred stock in innovative casual footwear company Crocs, Inc. (NASDAQ:CROX). In connection with the investment, Crocs announced that it intends to revise its capital structure to accommodate a $350 million stock repurchase program approved by its board of directors. Blackstone will be entitled to two seats on the Crocs board of directors.
Best hedge funds of 2013 (CNBC.com)