WSJ Prints List of SAC's "Well-Timed" Trades (WSJ)
Wall Street regulators expressed mounting concern about SAC Capital Advisors
' trading over a nine-year period, detailing in dozens of confidential reports suspicions that the hedge-fund firm might have profited from insider information. The reports, submitted by the regulators to the Securities and Exchange Commission, don't allege wrongdoing by SAC, one of the world's best-known hedge-funds, which is overseen by billionaire founder Steven A. Cohen
Whitney Tilson Buys Netflix After Tuesday's Crash (WSJ)
Mark Mobius Says Derivatives Markets Needs Reigned In (TheGlobeAndMail)
is ready for a rematch with Netflix
. Only this time, he’ll be in the other corner of the ring. Having been short when the stock went to the moon, the hedge-fund manager is now at risk of catching a falling knife. Mr. Tilson tells us in an e-mail that he bought the stock this morning after it tumbled 35%: “It’s been frustrating to see our original investment thesis validated, yet not profit from it. It certainly highlights the importance of getting the timing right and maintaining your conviction even when the market moves against you. The core of our short thesis was always Netflix’s high valuation. In light of the stock’s collapse, we now think it’s cheap and today established a small long position. We hope it gets cheaper so we can add to it.”
An opaque and bloated derivatives market is ultimately at the root of the volatility roiling stock markets – and investors’ best defence against it is global diversification, argues the man generally recognized as the father of emerging-market investing. “You’ve got $600-trillion in derivatives out there – that’s 10 times more than global GDP,” Mark Mobius
, the globe-trotting fund manager at Franklin Templeton Investments, said during a rare visit to Toronto Monday.
F&C Restructuring (FT)
It has taken Edward Bramson, the turnround specialist, a while to come up with his review of F&C Asset Management
, the investment group that he now chairs. He promised a root-and-branch review nine months ago when he won the backing of F&C’s shareholders, who have suffered seven years of underperformance, to become chairman. When Alain Grisay, F&C’s chief executive for six years, announced his departure earlier this month, the scene was set for a radical restructuring.
Merlin Securities Hires Ex-MS Strategist Rick Bensignor (FINAlternatives)
Prime brokerage Merlin Securities has hired Morgan Stanley
alumnus Rick Bensignor as chief market strategist. Bensignor has extensive experience in the finance world, including a stint as chief market strategist for Morgan Stanley’s principal strategies group. Prior to that, he had been the firm’s institutional investor-ranked technical strategy analyst, overseeing its technical product for four years.
Affiliated Managers Group (AMG) Up 18% (FINAlternatives)
Affiliated Managers Group
Despite the difficulties faced by hedge funds in recent months, investors have stuck by them, even adding cash at a time when returns are suffering. That could be changing, according to one top industry executive. Hedge funds will likely suffer net redemptions in the fourth quarter, the Man Group
's Luke Ellis said. "There will be a lot of people feeling uncomfortable about performance over the last six months," he explained. "A lot of people are trying to work out what to do for year-end," Ellis added. "I'd expect you'd see net redemptions from the average hedge fund over the fourth quarter."
continued its strong run in the third quarter, posting another double-digit increase in profit as its portfolio companies continued to take in new money. Prides Crossing, Mass.-based AMG, which invests in asset managers and owns stakes in hedge funds AQR Capital Management
, BlueMountain Capital Management
, ValueAct Capital
and Value Partners Group, said its quarterly profit rose 18% year-on-year. In the previous three quarters, the firm had enjoyed at least an 80% increase, and in the fourth and first quarters saw its profit double.
HedgeServ Creates 300 New Jobs (TheJournal)
A GLOBAL hedge fund administrator has announced the creation of 300 jobs at its Irish operations. HedgeServ, which is based on St Stephen’s Green in Dublin, will add the jobs to its Irish workforce which currently stands at 230. The company’s Irish employee base has already increased by 150 people over the last 12 months.
SEC Considers Easing Hedge Fund Data Rule (Reuters)
Regulators are considering easing a proposed rule so that fewer hedge fund advisers would have to hand over troves of confidential data to the government, according to people familiar with the deliberations. The Securities and Exchange Commission is due to vote on a final rule on Wednesday on the threshold that would trigger extensive reporting requirements for advisers to large hedge funds and other private funds.