Citadel Beats Markets With Big Year (CNBC)
In a year where many hedge funds posted unimpressive returns, Citadel, the Chicago money-management giant known for its swift movement and out-of-stock positions, generated more than 23 percent returns in its equity hedge fund and almost 18 percent in its multi-strategy flagship funds, Kensington and Wellington, according to someone who reviewed the numbers. Citadel Tactical Trading, a third fund that historically blended high-frequency trading with more traditional long-short stock investing styles, returned more than 26 percent, the person added. (Citadel removed the high-frequency trading component from the Tactical fund in April 2014.) The figures were being shared with Citadel’s investors on Monday night.
Napier Park Global Capital Named 2015 Hedge Fund Manager of the Year by Risk Magazine (CNBC)
Napier Park Global Capital, a global alternative asset management firm, announced today that it has been named 2015 Hedge Fund Manager of the Year by Risk magazine. The award is in recognition of Napier Park’s investment approach in credit-intensive and structured assets, and a business structure where the bulk of its investor capital is longer-dated, which is appropriate for the less liquid nature of the assets in which it invests. “We could not be more pleased to have been recognized by Risk for our accomplishments over the past year,” stated Jim O’Brien, senior managing partner of Napier Park Global Capital.
Hedge Fund Millionaire Shuns Currencies as Dollar Stalls (Bloomberg)
Stephen Diggle, who co-founded a hedge fund that made $2.7 billion over 2007 and 2008, is shunning currencies saying the profit readily available from wagering on the dollar’s appreciation against the euro and yen is over. There’s been a shortage of ideas for 2015 following the greenback’s strongest rally for a decade, said the chief executive officer of Singapore-based family office Vulpes Investment Management. The millionaire, who set up the firm about four years ago after liquidating his previous company’s volatility funds, would rather add to investments in German real estate as well as fruit-and-nut orchards in Australia and New Zealand even as those local currencies weaken, he said.
Man Hires Cheyne’s Sternbach for Equities Strategy at GLG (Bloomberg)
Man Group Plc, the biggest publicly traded hedge-fund manager, hired Moni Sternbach, a former partner at Cheyne Capital Management, to manage a new equity strategy at its GLG unit. Sternbach, 39, is a mid-cap specialist, and the new strategy is scheduled to start the first quarter, according to a statement today by London-based Man Group. He will report to Teun Johnston and Mark Jones, co-chief executive officers of Man GLG. “Moni is an experienced European fund manager with an excellent track record,” Johnston said in a statement. “His mid-cap expertise will form the basis of a new strategy which we will announce in due course.”
Hedge Funds Position for Oil Rebound, Brent Bets Most Since July (Reuters)
Hedge funds have raised the number of their bets on a rise in the price of Brent crude to the highest since July, data showed on Monday, as speculators position for a possible rebound in oil prices following a near 60 percent collapse. Funds and other large speculators have been adding to positions betting on higher prices since October, even as prices have continued their seven month rout, hitting a new a new 5-1/2 year low on Monday below $48 a barrel. Data from the Intercontinental Exchange showed on Monday funds have accumulated positions on paper equivalent to more than 140 million barrels of crude – a level last seen when prices were near $105 a barrel in July.
BofA Said to Oust 150 Hedge Fund Clients Under New Rules (Bloomberg)
Bank of America Corp. cut ties with about 150 hedge funds last year in its prime brokerage group because new regulatory requirements designed to make the financial system safer are forcing lenders to reduce costs. The second-largest U.S. bank made the decisions based on which relationships were profitable enough to keep amid new capital and liquidity rules, according to two people familiar with the bank’s strategy, who asked not to be named because details are private. The cuts included the majority of its quantitative hedge fund customers, or those that use computer programs to trade, one of the people said.
Hedge Funds Push For Caesars Bankruptcy, Seek Examiner (Reuters)
A group of hedge fund creditors of Caesars Entertainment Corp. sought on Monday to force its main operating unit into bankruptcy and to appoint an independent examiner to investigate what they allege was the plundering of the company. The move follows Friday’s announcement that the largest U.S. casino operator had the backing of senior noteholders for its plan to cut the debt of the operating unit, known as CEOC, to $8.6 billion from $18.4 billion. Under that plan, the hedge funds that filed the involuntary bankruptcy would be paid around 12 percent of what they are owed. They hold claims of $41.1 million, according to court papers.
