Hedge Fund News: Warren Buffett, John Paulson & Jeffrey Ubben

Hedge fund manager Whitebox launches tactical income mutual fund (HedgeWeek)
Whitebox Advisors has launched the Tactical Income Fund providing individual investors and advisors access to its fixed income managers who apply an alternative investment philosophy often associated with hedge funds. “We think investors have come to expect too little from their fixed income allocations. With the Whitebox Tactical Income Fund, we aim to show investors that more is possible,” says Andrew Redleaf, Founder and CEO of the USD3.7 billion asset management firm.

Fortress Beats Estimates as Credit Offsets Macro Losses (Bloomberg)
Fortress Investment Group LLC (NYSE:FIG), the first publicly traded private-equity and hedge-fund manager in the U.S., posted first-quarter earnings that beat analyst estimates after gains in its credit business made up for losses in some hedge funds. Pretax distributable earnings, which exclude some compensation costs and other items, decreased to $97 million, or 21 cents a share, from $100 million, or 20 cents a share, a year earlier, New York-based Fortress said today in a statement. The results exceeded the 15-cent average per-share estimate by seven analysts in a Bloomberg survey.

Dan Loeb’s Advice for 2014 Investing: Pick Carefully and Be Patient (Wall Street Journal)
Hedge-fund manager Dan Loeb has a message this May Day: Ignore the old market adage “sell in May and go away.” In a letter to investors in his $14.3 billion fund, Third Point LLC, Mr. Loeb admits to being a bit too optimistic to start the year and says that hindsight shows “certain sectors were clearly exhibiting bubblelicious valuations.” But he believes the pullback in stocks created the chance to add to positions at “attractive levels.” That means it’s time for the traders to come out.

AMG Buys Into Veritas, Reports Higher Earnings (FINalternatives)
Hedge fund Veritas Asset Management has agreed to sell a majority stake in itself to Affiliated Managers Group, Inc. (NYSE:AMG). Terms of the deal were not disclosed. Veritas’ partners, who will retain a minority stake in the firm, will continue to run the business and have full investment autonomy, Veritas said. According to Pensions & Investments, those partners have committed to remain with Veritas for at least a decade, and will invest most of the proceeds of the deal into Veritas’ funds.