Whitney Tilson Wins as Disney (DIS) Gives Netflix (NFLX) its Stamp of Approval (StreetInsider)
Hedge fund investor Whitney Tilson is standing a little taller tonight after shares of Netflix, Inc. (NASDAQ:NFLX) surged 14 percent on it exclusive content deal with The Walt Disney Company (NYSE:DIS). Tilson has been with Netflix through ups and downs, short and long. His initial short beat on Netflix promoted a rare public response from CEO Reed Hastings. Shortly after Tilson covered the trade… at a loss. Tilson was so convinced that Netflix wouldn’t go down, he did a complete 180 and went long in a big way. His initial long bet proved rocky from the start. However, his fortunes have now changed. With the recent surge in the stock from today’s news and Carl Icahn’s recent stake, he appears to be sitting pretty. While it is not known Tilson’s cost basis on the stock, putting together bits and pieces of information it is estimated to be around $70/share. This would suggest he is up about 24%.
Deer Park readies second credit fund as STS Partners reaches capacity (HedgeFundsReview)
Deer Park Road Corporation is closing its STS Partners Fund to new investors as assets under management have risen to more than $600 million. The fund, named best fixed income/credit hedge fund at the Hedge Funds Review Americas Awards 2012 in July, invests in distressed mortgage and asset-backed securities. Launched in May 2008, the fund returned nearly 30% annually for the three years through May 2012 with volatility of less than 5%. The fund’s assets shot up from $341 million after it achieved a three-year track record.
Lawyers Withdraw in Suit Against Dakota – Wall Street Journal (Bayoubuzz)
A New York state judge allowed the two law firms representing a hedge-fund manager to withdraw from his lawsuit alleging discrimination by the Dakota co-op in Manhattan. The fund manager, Alphonse Fletcher Jr., filed the suit last year against the gabled Dakota, the 19th-century building where many celebrities have lived over the years. Fund manager Alphonse Fletcher Jr. is in a legal fight with the Dakota co-op on Central Park West over his effort to buy a second apartment. One law firm asked to withdraw from the case in October, after it said Mr. Fletcher had stopped paying bills in April. Soon after, the other firm asked to withdraw as well because of “irreconcilable differences” with Mr. Fletcher, it said in court papers. The firm declined to provide details, citing attorney-client privilege.
Average South African Hedge Fund is Up More Than Double The Global Average YTD (Opalesque)
A number of South Africa based hedge funds have received significant foreign interest and sizable inflows from European multi-family offices. There is also interest from US endowments and fund of funds. Similar to multinational corporations that are looking for business opportunities in Africa, astute investors are moving into Africa as well. South African managers have the skill and experience to deal with emerging markets and frontier investing, in particular Sub-Saharan Africa. Initially South Africa was perceived as only a mining-rich resources economy and so the country got predominantly categorized within the resources cycle. Other investors believe there are good investment opportunities in South Africa itself outside of just resources and mining.
Swiss managers fear over-regulation could kill hedge fund industry (Opalesque)
Hedge fund managers who took part in the latest Opalesque 2012 Zurich Roundtable have voiced concern that new regulations have made it very difficult for new managers to build their business. …Speaking during the Roundtable, Dr. Urs Ramseier, chairman of Twelve Capital, an investment manager specializing in insurance related investments, said, “Today, an asset manager needs a risk manager, a portfolio manager, compliance officer, and so on. The barriers of entry are now much higher. The worry is that these developments will in the end kill the single fund management industry in Switzerland. Just look from where the innovation in our industry is coming from. It is not coming from places like UBS or Credit Suisse, but rather from the smaller asset managers who set out on their own. They have a good idea, create their fund and if they are successful they will raise assets and grow. This is how the innovation is happening.”
MST secures mystery super fund investment (BusinesssSectator)
MST Capital, the hedge fund headed by former UBS trader Gerard Satur, has secured a $100 million mandate from an anonymous Australian superannuation fund, The Australian Financial Review reports. According to the newspaper, it signals the fund’s first major investment and takes its total funds under management to $130 million. MST was started by ex-UBS proprietary traders as a prop trading business inside UBS under the guidance of Australian boss Matthew Grounds.