Hedge Fund News: Peter Thiel, FrontPoint, Investing In Egypt

Peter Thiel Hits Rock Bottom (II Magazine)
It’s an old tale given a new twist by the Internet: Great entrepreneurs don’t always make great investors. Peter Thiel was a co-founder of PayPal and an early backer of Facebook. Yet his once-promising San Francisco–based global macro hedge fund, Clarium, which at its peak in 2007 had $7 billion, is reportedly down to about $500 million, most of it Thiel’s own wealth. Clarium lost 23 percent in 2010. …He recently became a seed investor in Grandmaster Capital Management, a hedge fund firm founded last month by former Clarium Capital Management managing director Patrick Wolff.

FrontPoint completes split from Morgan Stanley (Reuters)
FrontPoint Partners, the $4.5 billion hedge fund ensnared in the government’s insider trading probe, is back on its own after more than four years of living with investment bank Morgan Stanley. …The move allows FrontPoint portfolio managers, including Steve Eisman, arguably the firm’s biggest star who cashed in on anticipating the housing market collapse long before anyone else, to operate more independently. Late last year, FrontPoint’s health care funds were forced to close down after a French physician was arrested and charged in early November with having illegally passed inside information to Joseph Skowron, a FrontPoint manager. Neither Skowron nor FrontPoint have been charged with any wrongdoing. At its peak before the financial crisis in 2008, FrontPoint managed $10 billion.

Investing in Egypt After the Revolution (Reuters)
Ahmed Fattouh, an Egyptian-American investor and chief executive of hedge fund and private equity firm Globalist Capital Management, spoke to Reuters about his thoughts on investing in Egypt after political turmoil. Fattouh, whose firm has offices in New York, London and Dubai, oversees about $300 million in assets and has been investing in the Middle East since 2005. He visited Cairo and Tahrir Square in the past few weeks and shared his thoughts. “Obviously there are going to be some distressed opportunities and this is a volatile time. The market has been closed for weeks, and obviously when it reopens there will be a good deal of selling pressure. That will obviously create some opportunities in terms of forced sellers and panicked sellers who will not be very focused on the fundamentals.”

JPMorgan Chase & Co (NYSE:JPM)

JPMorgan Prop. Desk To Get $2B In Hedge Fund Transition (FinAlternatives)
JPMorgan Chase will seed its proprietary-trading-desk-cum-internal-hedge-fund with $2 billion.
The figure may be an indication of the big plans the bank has for its transformed prop. desk: Under the same Dodd-Frank law forcing JPMorgan to move the desk to its asset management unit, a bank’s capital cannot make up any more than 3% of the assets of a hedge fund. In order for JPMorgan to keep its investment in the new unit at $2 billion, then, the firm would have to raise nearly $65 billion from outside investors.

Neuberger Berman Adds Kupperman To Funds Arm (FinAlternatives)
David Kupperman has joined New York-based money manager Neuberger Berman Group as a managing director of NB Alternatives Investment Management, the firm’s fund of hedge funds business.
Kupperman will be based in New York and involved in all aspects of the fund of hedge funds investment process.

Centro to Swap Australian Malls for Debt After Blackstone Deal (Bloomberg)
Centro Properties Group has agreed with a majority of creditors to swap debt for its Australian shopping centers after Blackstone Group LP bought the company’s 588 U.S. malls for $9.4 billion. Holders of about 73 percent of Centro’s liabilities agreed to cancel the Melbourne-based company’s senior debt in exchange for the Australian malls. Centro, which had a stock market value of about A$8.5 billion ($8.7 billion) in May 2007, will be left with $100 million to distribute to shareholders and other minority interests after the deal, it said in a statement today.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!