The Eurekahedge Hedge Fund Index gained 1.88% in October as optimism returned to the global economy and markets posted strong rallies. The MSCI World Index gained 8.65% amid moves to resolve the European debt crisis, as well as better than expected economic data from the US. The Eurekahedge Hedge Fund Index had its largest gain of 2011, rising 1.88% during October. The Mizuho-Eurekahedge Top 100 Index remained in positive territory for the year with a 1.17% return (October YTD). Long/short equity funds made their best gain since May 2009, gaining 4.1%.Hedge funds have attracted net asset flows in october. Japanese hedge funds have attracted the largest asset flows (in percentage terms), increasing 7.5% for the year, allowing Asian hedge fund assets to remain at US$130 billion. The activity in the industry remained intense in the third quarter of 2011, more than 150 hedge funds launched during this time.
Global markets are down 7.60% (October YTD), while the Eurekahedge Hedge Fund Index is down 3.05%. The asset weighted Mizuho-Eurekahedge Top 100 Index continues its strong run for the year and is now up an impressive 1.17% in 2011.
KKR-Wendel Sells Legrand Stake -zonebourse-
Wendel and Kohlberg Kravis Roberts & Co. (with its affiliates, “KKR”) announced that They had completed successfully the joint sale of 24.3 million shares of Legrand, representing 9.2% of Legrand’s share capital, at a price of 24 euros per share. Wendel sold nearly 13 million shares, in other terms, 4.9% of Legrand’s share capital for a global amount of 13 million euros and a capital gain of around € 191 million. Wendel holds approximately 5.8% of the share capital of Legrand and approximately 10.1% of its voting rights. KKR founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $58.7 billion in assets under management as of September 30, 2011. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR).Wendel is one of Europe’s leading listed investment firms. The Group invests in France and abroad, in companies that are leaders in their businesses: Bureau Veritas, Legrand, Saint-Gobain, Materis, Deutsch and Stahl. Wendel plays an active role as industry shareholder in these companies.Wendel was put on negative outlook by S&P in October 2011 because of its increased debt.
HSBC profit soars after accounting gain
In fact, underlying profits were down 1.6 billion dollars compared to the period in 2010 at 3 billion, but the controversial accounting rules enabled HSBC to double its third quarter profits to 7.2 bn dollars. There was a fall in revenues in investment banking in its North American business. HSBC said that 5,000 full-time staff has been laid-off so far this year and 30,000 job losses are expect by 2013, or one-in-ten jobs globally.