Investors prefer high-quality hedge funds over high returns (BenefitsCanada)
The majority of hedge fund investors are not looking for double-digit returns from their hedge fund investments. A Preqin survey finds that 67% of institutional investors look for annual returns between 4% and 6% while just 6% of investors seek returns of more than 10%. Investors are looking for their hedge fund portfolios to produce returns uncorrelated to equity markets (59%), produce robust risk-adjusted returns (53%) and dampen portfolio volatility (46%).
Argentina May Play For Time With Payment To Holdouts (Finalternatives)
Argentina is prepared to offer hedge-fund holdouts from its 2001 default as much as US$400 million in exchange for more time to hammer out a final deal, one of the country’s leading newspaper reports. The U.S. Supreme Court last week refused to accept Argentina’s appeal of lower-court rulings ordering it to pay the hedge funds, led by Elliott Management and Aurelius Capital Management, US$1.5 billion or risk defaulting on its restructured debt. Argentina has continued to talk tough on what it calls the “vulture investors”—with full-page advertisements in The New York Times, Washington Post and The Wall Street Journal this weekend—but also said it plans to hold talks with the hedge funds for the first time…
Falcone’s Harbinger Group Offers to Buy Central Garden and Pet (NYTimes)
The Harbinger Group, the publicly traded holding company run by the hedge fund manager Philip A. Falcone, has offered to buy the Central Garden and Pet Company for $10 a share. The offer, for Central Garden’s Class A and Class B shares, represents a premium of 11 percent from Friday’s closing stock price and is 27.5 percent above where the shares were trading on June 6, before Harbinger disclosed that it had taken a stake of more than 4 percent in Central Garden and was seeking a dialogue on “strategic alternatives.”
Hedge Fund and ValueVision Shopping Network Settle Differences (NYTimes)
After a seven-month battle, the activist hedge fund Clinton Group and the Internet and shopping network ValueVision Media have settled their differences. ValueVision announced a new chief executive officer and a new board of directors on Monday. Mark C. Bozek, a former chief executive of the Home Shopping Network, will take the helm of the company as Keith R. Stewart steps down. Robert Rosenblatt will take over as nonexecutive chairman, succeeding Randy S. Ronning.
Man Seeding Chief Out (Finalternatives)
Patric de Gentile-Williams, the head of seeding at the Man Group’s fund of hedge funds arm, has left the firm. De Gentile-Williams took his exit last month, after seven years at FRM—which Man acquired in 2012, five years after he was named chief operating officer of its seeding business, FRM Capital Advisors. Previously, he founded hedge fund incubator PCE Investors. Man, which recently acquired U.S. fund of funds Pine Grove Asset Management, will not name a successor to de Gentile-Williams, although Financial News reports that it will continue seeding nascent hedge funds.
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