Tiger Management Backing New Asia-Focused Hedge Fund (WSJ)
Julian Robertson‘s Tiger Management LLC has agreed to back startup hedge-fund Kang Global Investors LP with as much as $50 million for its launch at the start of July, according to people familiar with the arrangement. In exchange for the early investment, the new hedge fund’s founder Richard Kang will pay about 20% of fees earned to Mr. Robertson’s Tiger in what is known as a “seed deal,” the people said. The New-York based Kang Global will be an Asian-focused fund, similar to Mr. Kang’s former employer, the shuttered hedge-fund Tiger Asia Management.
Hedge Funds Lag S&P 500 MTD (Finalternatives)
Hedge funds lag the S&P 500 Index month to date, with the Diversified Investible Hedge Fund Composite Index up 0.8% to the broader index’s 1.7% as of June 18. Event-driven funds performed the best, said Bank of America Merrill Lynch analyst MacNeil Curry, adding 1.2% over the monitored period. Curry said BofAML models indicate market neutral funds trimmed their market exposure to 10% net long from 17% net long while long/short funds trimmed their exposure to 43% net long from 50% net long, above the 35-40% benchmark.
Argentina seeks debt talks to avoid default (GlobalPost)
Lawyers for Argentina were planning to meet with a New York judge Monday to seek a way to avoid defaulting on billions of dollars worth of debt on June 30. Cabinet chief Jorge Capitanich said the legal team would make a formal presentation for talks with creditors to Judge Thomas Griesa, who first ruled against the country in its battle against hedge fund bondholders in 2012. But Griesa’s court was not able to confirm any meeting was scheduled early Monday.
Hedge Fund Loses Millions In Hacking Attack (Key103)
In a rare raid on the financial services sector, the criminals delayed the fund’s trades whilst stealing their profitable company secrets. BAE Systems Applied Intelligence said the attack cost the unnamed fund millions of dollars and the identity of the attackers is still unknown. It is understood the attackers lifted information on complex, high-speed trades from the firm, then sent the details to external servers using malware which was installed on the victim’s network.
SEC Charges Hedge Fund Advisory Firm and Others in South Florida-Based Scheme to Misuse Investor Proceeds (NewsRoomAmerica)
The Securities and Exchange Commission today charged a West Palm Beach, Fla.-based hedge fund advisory firm and its founder with fraudulently shifting money from one investment to another without informing investors. The firm’s founder and another individual later pocketed some of the transferred investor proceeds to enrich themselves. The SEC alleges that Weston Capital Asset Management LLC and its founder and president Albert Hallac illegally drained more than $17 million from a hedge fund they managed and transferred the money to a consulting and investment firm known as Swartz IP Services Group Inc…