Hedge Fund News: Warren Buffett, Boaz Weinstein & Two Sigma Advisors

Why Buffett is betting on energy stocks again (Yahoo)
Warren Buffett has been a big believer in and buyer of U.S. energy-indirectly. When it comes to direct investments in energy stocks, though, Buffett-famous for using an elephant-gun analogy to describe his hunt for acquisitions-has been notably gun-shy. Some recent bets on big oil and gas stocks suggest that Buffett and his stock-picking lieutenants-former hedge fund managers Todd Combs and Ted Weschler-are open to a wider range of direct energy stock investments. …Even as the U.S. underwent the first decade of a transformative shale boom, Buffett didn’t step up to buy any U.S. exploration or production or oil service companies for Berkshire Hathaway Inc. (NYSE:BRK.A)‘s portfolio of public stocks…

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Pippa Middleton’s boyfriend quits City job for Swiss hedge fund (Independent)
Pippa Middleton’s stockbroker boyfriend has quit his lucrative job in the City of London to work for a hedge fund in Switzerland. Nico Jackson, who has been dating the Duchess of Cambridge’s younger sister for nearly two years, is heading to Geneva to take up a new challenge. The move comes amid growing speculation that he and Miss Middleton are about to get engaged. City insiders say Mr Jackson, 35, is leaving his role at Deutsche Bank AG (USA) (NYSE:DB) next month to join Jabre Capital as an investment manager in Geneva. The $2 billion (£1.6 billion) hedge fund was set up by Beirut-born businessman Philippe Jabre.

Boaz Weinstein Is Having Another Losing Year (BusinessInsider)
Saba Capital, the hedge fund run by legendary credit trader Boaz Weinstein, is on track for another down year so far. The fund is down 2.9% through the end of June, Bloomberg News reports citing an investor letter. According to the report, Saba’s assets under management have fallen to $US2.6 billion due to redemptions. At one time, Weinstein managed $US5.5 billion. Before founding Saba in 2009, Weinstein was the co-head of credit trading at Deutsche Bank. In 2011, he made headlines for being the trader who took the other side of JPMorgan Chase & Co (NYSE:JPM)’s disastrous “London Whale” trade.

TLC Capital Group Readies Summer Hedge Fund Launch (HedgeCo)
Atlanta-based TLC Capital Group LLC is preparing the launch of a new option-hedged market neutral fund, the Salvus Hedged Yield Fund LP. “The fund is designed for the preservation of capital and will offer investors the advantage of a defined market risk and a target high single digit ROR*.” CIO William J. Taylor said, “By investing exclusively in large- and mid-cap listed equities and hedging with corresponding listed options, the fund will offer unparalleled liquidity and transparency. We feel the fund will appeal to both institutional and individual investors alike, and should be a core holding for both.”

Ex-Elliott Asia Managers To Launch $100M Special Situations Fund (Finalternatives)
A pair of Elliott Management veterans will seek US$100 million for a new Asia-focused special-situations hedge fund. Ark Pacific Capital Management will invest in private convertible bond issues and pre-initial public offering companies, as well as make direct loans, Bloomberg News reports. Firm founders Kenneth Ng and Arthur Lau plan to tap opportunities too small for Elliott and to offer their clients co-investment opportunities. The Hong Kong-based firm will focus on Greater China initially, although it will also look at South Korea and Southeast Asia.

Fears surface around Portugal’s banks (CNBC)

The Epic Story Of How A ‘Genius’ Hedge Fund Almost Caused A Global Financial Meltdown (BusinessInsider)
Twenty years ago, one bond-trading hedge fund grew from launch to over $100 billion in assets in less than three years. It saw yearly returns of over 40 percent. It was run by finance veterans, PhDs, professors, and two Nobel Prize winners. Everyone on Wall Street wanted a piece of their profits. But by 1998, that firm was primed to expose America’s largest banks to more than $1 trillion in default risks. The demise of the firm, Long-Term Capital Management (LTCM), was swift and sudden. In less than one year, LTCM had lost $4.4 billion of its $4.7 billion in capital.

Hedge Fund Scam Artist Claims Kardashian Affair (Finalternatives)
Did the hedge fund fraudster who ripped basketball player Kris Humphries off also cuckhold him on the eve of his wedding? Andrey Hicks, who is serving a three-and-a-half year prison sentence for defrauding Humphries and others of $2.3 million, claimed earlier this week that he and Kardashian had a romantic encounter in Monaco just before her marriage to Humphries in 2011—a trip that included Humphries. But Kardashian’s lawyer has denied the allegations, and challenged Hicks to take a lie-detector test. In an interview with Perez Hilton, Hicks said that his rendezvous with Kardashian occurred during a fight with Humphries, and that she initiated it.

Hedge fund performance turns positive (Opalesque)
After two months of losses, hedge funds achieved gains in all strategies in May with the median fund increasing 1.01% for the month, according to the latest hedge fund monitor data from Deutsche Bank. Globally, emerging markets equity funds led the recovery gaining 1.80%; however, distressed and credit strategies continue to lead year-to-date gains at 5.74% and 4.35%, respectively. In the US, CTA / managed futures continue to recover, up 1.42% in May. In Asia, macro continues to deliver, up 2.23% for May and 1.21% year-to-date. European performance continues to be led by credit and event strategies, both up over 3% for the year. Global dispersion of returns was highest for CTA / managed futures, emerging markets equity and macro strategies.

Puerto Rico Luring Hedge Funds on Record Price Drop: Muni Credit (Bloomberg)
Hedge funds and investors in distressed municipal debt are buying into Puerto Rico after prices on the territory’s securities set record lows on concern that its electric utility will restructure its bonds. As the U.S. territory lurches toward crisis, buyers of risky debt see opportunity, said David Tawil, co-founder of hedge fund Maglan Capital LP, which bought island general obligations this week. The demand may help stem losses in Puerto Rico securities after they posted the biggest weekly drop since at least 1999. The restructuring speculation is “knocking the daylights out of the rest of the commonwealth’s debt,” said Tawil, who oversees a $75 million fund in New York. “I don’t think that that’s a justified relationship.”

Two Sigma Investments Is Having a Great Year And Becoming A Hedge Fund Powerhouse (Forbes)
New York hedge fund firm Two Sigma Investments is having a great year even as most hedge funds struggle to keep up with the U.S. stock market. The hedge fund firm run by John Overdeck and David Siegel now manages $20 billion, is posting strong returns, and generally becoming a hedge fund powerhouse. Two Sigma Enhanced Compass, part of Two Sigma’s Compass strategy that manages $5 billion, has returned 26.64% this year through the end of June, according to an investment report reviewed by Forbes. That makes Enhanced Compass one of the best-performing hedge funds of the first half of 2014.

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