Hedge Fund News: Richard Chilton, Thomas Steyer & AQR Capital Management

Page 2 of 2

Napier Park To Leave Citi HQ (Finalternatives)
Napier Park Global Capital is cutting another tie with former parent Citigroup. The hedge fund, spun off last year as the bank moved to come into compliance with new U.S. regulations limiting alternative investments activities, will leave Citi’s New York headquarters this summer. Napier Park will head four blocks south, from 399 Park Avenue to 280 Park Avenue, where it has signed a 10-year lease for 25,000 square feet of space. Napier Park’s neighbors in its new home include Blue Mountain Capital and Promontory Financial Group.

Fast growth of liquid alternatives fuels hedge fund fee discussion (Opalesque)
Liquid alternative funds continue to show fast growth, said hedge fund information provider Infovest21. In its latest report, Infovest21 said in 2013, net flows for alternatives were $40bn, up from $14.6bn in 2012. So far this year through April, net flows are at $11.6bn. Lois Peltz, president of Infovest21 and author of the report, said, “Liquid alts are still very early in the game. Fees have to get lower and track records need to get longer so that target date or stand-alone options are comfortable adding liquid alts as an option. Lower fees and longer track records will make it easier for DC professionals to be objective when considering it for their portfolio.”

Hedge Fund Manager Balboa Gets 4 Years In Prison (HedgeCo)
A portfolio manager for the now collapsed hedge fund Millennium Global Investments has been sentenced to 4 years in prison and 3 years of supervised release, The Wall Street Journal reports. Michael Balboa, a London-based hedge fund manager, was convicted in 2013 for providing fake valuations on Nigerian warrants at the height of the financial crisis. The scheme generated millions of dollars in management and performance fees for which he earned as much as $6.5 million, prosecutors said.

Investors Strike Hedge Fund Partnerships (Funds-Europe)
Investors are seeking a more active engagement with hedge funds, says Michelle McGregor-Smith, the chief executive of British Airways Pension Investment Management, in a report that claims partnerships lead to better access to knowledge and more value for money for investors. McGregor-Smith, who is also chair of the investor steering committee at the Alternative Investment Management Association (AIMA), makes the comment in an AIMA/Barclays report that finds that investors are increasingly striking partnerships with hedge funds, which AIMA says reflects a closer collaboration taking place between the hedge fund industry and its investor base.

Three Tech Managers Leave Point72 (Finalternatives)
Point72 Asset Management has suffered its first major exodus of traders since the former SAC Capital Advisors became a family office in April. Three traders left the $10 billion firm’s Boston office over the last week, The New York Times reports. Telis Bertsekas, Nina Huges and Michael Valentine were all technology traders; Bertsekas and Hughes co-managed several hundred million dollars for SAC and then Point72, and Hughes was one of just a handful of women to serve as portfolio managers at the firm. It is unclear what the trio’s plan is, although the Times reports that Bertsekas and Hughes are expected to join another hedge fund and to continue working together.

Recommended Reading:

PL Capital Raises Exposure To Metro Bancorp Inc. (METR)

Valinor Management Llc Boosts Its Stake in dELiA*s, Inc. (DLIA)

Mario Gabelli Discloses 3 Stock Picks for Second Half of 2014



Page 2 of 2