Lone Star’s Rare M&A Concession Earns Hedge Funds Quick Money (Bloomberg)
Hedge funds including Segantii Capital Management are set to make some fast returns after Lone Star made a rare concession in a contentious U.K. takeover tussle. Lone Star boosted its bid for retirement home developer McCarthy & Stone Plc on Monday to 647 million pounds ($862 million) following investor opposition. The last-minute sweetener of 5 pence a share translates into an extra 27 million pounds for shareholders, which helped ensure they approved the deal later in the day.
BlueCrest Capital Management to Pay $170 Million to Settle SEC Claims (The Wall Street Journal)
BlueCrest Capital Management Ltd. will pay $170 million to settle claims that it misled clients about an internal fund that invested its traders’ own money, while its flagship fund was managed by an underperforming algorithm, the Securities and Exchange Commission said Tuesday. Once one of Europe’s biggest hedge-fund managers, BlueCrest stopped managing money for outside clients in 2015 after a sharp drop in assets and a run of poor returns from its flagship macro fund. It continued trading its employees’ own money.
Same, Same But Different (Hedge Nordic)
Stockholm (HedgeNordic) – From time to time, investors unavoidably face episodes of volatility on their investing journeys. Financial markets, market participants and ordinary people tend to dislike uncertainty. The existing and prospect investors of Oslo-based multi-strategy hedge fund Polar Multi Asset happen to dislike uncertainty and volatility just like everyone else. After gaining over 20 percent in March alone but then giving up 22 percent during the summer, “both existing fund-investors and potential investors have expressed a desire for somewhat lower volatility in our fund,” Kent Torbjørnsen, the CEO of Polar Asset Management, tells HedgeNordic.
The ‘Warren Buffett of Bonds’ is Stepping Back from Managing Portfolios. He has Plenty in Common with the Berkshire Hathaway Boss (Business Insider)
An 87-year-old investor nicknamed the “Warren Buffett of bonds” is taking a step back from managing portfolios. However, like his 90-year-old namesake, he isn’t ready to retire just yet. Dan Fuss will celebrate his 45th year with Loomis Sayles next March. He will mark the milestone by ceasing to co-manage the investment firm’s flagship $9.1 billion bond fund or any of its mutual or offshore funds, Loomis Sayles announced on its website.
Investor Bill Ackman and NBA’s Chris Paul Back Housing Fund (The Wall Street Journal)
An impact investment firm has won the backing of NBA All-Star Chris Paul and activist hedge-fund investor Bill Ackman, whose family foundations are investing in funds targeting America’s affordable housing shortage. Turner Impact Capital has raised $357 million for its second fund focused on providing affordable housing to people who earn too much to qualify for subsidized housing but not enough to afford homes in the areas where they live and work.
The Bake-Off Judges Must Decide on Elliott’s Dish (Bloomberg)
It was too much to hope that Elliott Management Corp.’s attempted takeover of the firm behind Otis Spunkmeyer cookies would stay amicable. The hedge fund on Monday made a thinly veiled appeal to shareholders to pressure Aryzta AG’s board into swallowing its 794 million-franc ($891 million) takeover offer, pointing out the directors hold the key to putting it to an investor vote. This is a risky strategy compared to presenting the board with a knockout bid, but that’s Elliott’s choice.