SAC Adds ‘Big Data’ Firm To Anti-Insider-Trading Effort (Finalternatives)
SAC Capital Advisors is turning to data analytics employed by the Federal Bureau of Investigation and Central Intelligence Agency to keep an eye on its employees. The hedge fund’s hire of Palantir Technologies is part of its effort to overhaul its compliance systems after its guilty plea to insider-trading charges last year. SAC, which is becoming a family office in the wake of that plea, is also placing a new management layer between founder Steven Cohen and his traders, and will hire a chief surveillance officer. Ten former SAC traders and analysts have been accused of insider-trading. Eight have pleaded guilty or been convicted of criminal allegations.
Hedge fund managers couldn’t stay committed in 2013 (LifeHealthPro)
North American and European managers have been more active in switching service providers in 2013, with 35 percent on both sides of the pond changing service providers during the past year, a new report from Preqin reveals. The trend was more pronounced in certain regions. The report indicates that 55 percent of Asia and rest of world managers have switched a service provider in the past five years (excluding the last 12 months).
Hedge Funds Entering ETF Space To Lure More Investors (FA-Mag)
More client-hungry hedge fund managers are looking to put their investment strategies to work in exchange-traded funds, a move that could exponentially expand their pool of investors but requires them to slash investment management fees. That is a tradeoff many managers of smaller hedge funds are willing to make, hoping Mom-and-Pop investors can fuel their growth. Smaller funds are often less able to attract assets from large pension funds and institutions that prefer the biggest hedge funds with billions in assets and long track records.
Loeb’s Worst Stock Pick Ever Came Courtesy of Bill Ackman (FoxBusiness)
The worst investment shareholder activist Daniel Loeb ever made was the result of a bad tip from a former friend, fellow activist Bill Ackman. In fact, the investment was so bad that Loeb apparently still can’t forgive Ackman for getting him involved, the FOX Business Network has learned. That was the upshot from a private briefing Loeb gave to a group of analysts and investors in New York on February 25. When asked during the talk about his biggest flub as an investor, a visibly agitated Loeb said he lost nearly his entire investment in an Ackman fund that invested in shares of Target Corporation (NYSE:TGT), according to one person who was present.
Pimco: A sovereign under siege (FT)
When Doug Hodge addresses the quarterly meetings of Pimco’s 2,600-strong staff, he typically signs off with a single word, a linguistic flag for the troops to march under. Mr Hodge is the operations guy at the giant bond fund manager, and when he spoke to employees this week – for the first time since his elevation to chief executive in a forced reshuffle that shocked the investment industry – the word he left them with was this: “Grit.” The appeal to resilience and determination is apposite in a period that ranks among the trickiest and most unpleasant in Pimco’s history.
J.P. Morgan hires managing director for global smart-beta strategies (PIOnline)
Soheil Galal joined J.P. Morgan Asset Management (JPM) as managing director and global client portfolio manager within the firm’s asset management solutions-global multiasset group. The position is new. Mr. Galal is responsible for developing the firm’s global smart beta investment strategies, Kristen Chambers, a JPMAM spokeswoman, said in an e-mail. Mr. Galal was partner and co-chief investment officer of hedge fund manager Averos Capital. The firm was acquired by another company in 2012.