Ex-Point72 Managers Off to Scorching Start (HFAlert.com)
Technology-stock investor KCL Capital’s assets soared in 2018 amid outsized returns. The New York firm, founded by former Point72 Asset Management portfolio managers Kevin Cottrell and Chris LaSusa, finished the year with $300 million under management — up from $75 million 12 months earlier. Aiding that increase was a 2018 gain of 19.2%, with jumps of 6% in January and 4% in December. That dwarfed a full-year rise of 3.8% in the HFRI Equity Hedge Technology Index. KCL takes a fundamental approach to investing in technology, media and telecommunications stocks worldwide while maintaining a low net exposure.
Commonfund Cools on Hedge Funds, Eyes Credit in 2019 (Opalesque.com)
Commonfund, a $24.8 billion asset manager for endowments, foundations, and pensions, has cut back its allocations to hedge funds citing a desire to preserve liquidity as managers struggle to take advantage of market moves. In its recent outlook letter, the asset manager said that it is less concerned about managing volatility and more concerned about maintaining the liquidity its clients need to cover yearly spending. As a result, Commonfund reduced its exposure to hedge funds and increased its allocations to core bonds. Commonfund’s hedge fund portfolio is constructed to minimize correlation to equity markets and credit – which are the primary risks that already reside in policy portfolios – with an eye toward capturing risk premia.
The co-CEO of the World’s Biggest Hedge Fund Reveals Why Vulnerability is the Secret to the Firm’s Success (Business Insider)
A strong work ethic and high IQ are required to work at just about every hedge fund, but to work at Bridgewater Associates — the world’s biggest fund that manages $160 billion — employees need to not just be open-minded, but vulnerable. Eileen Murray, Bridgewater’s co-CEO, told attendees at the Context Summits conference in Miami on Wednesday that Bridgewater’s success can be attributed directly to the “radical truth and radical transparency” culture that founder Ray Dalio has preached.
Activist Investors Urge eBay To Separate StubHub And Classifieds Businesses (Forbes)
On January 22, 2019, Elliott Management Corporation wrote a letter to eBay Inc (NASDAQ:EBAY, $33.69, Market Capitalization: $32.4 billion)’s Board of Directors outlining a significant value-creation opportunity at the company. Elliott Management is urging eBay to restructure itself, by separating both StubHub and Classifieds from its core Marketplace platform. The proposal (similar to a classical activist playbook) includes asset break-up, cost-cutting initiatives and a return of incremental cash to shareholders through buyback & higher dividends.
Hedge Fund That Survived Trial by Fire Bets on Brazil’s Currency (Bloomberg)
(Bloomberg) — A Brazilian hedge fund whose assets plunged 95 percent in 15 months is clawing its way back: Returns are beating most of its peers and assets under management are climbing again as bullish bets pay off. Gauss Master Fund has returned almost 17 percent since July 31, about 13 percentage points more than its benchmark, data compiled by Bloomberg show. Fund manager Fabio Okumura said he’s betting on an 11 percent rally in the Brazilian currency in the next three months after posting gains last year on investments in interest rates and stocks.
Elliott Looks Beyond Activism to Full-Blown Takeovers (The Wall Street Journal)
Elliott Management Corp. is expanding its horizons. The hedge fund, one of the biggest and busiest shareholder activists, is making a new push into outright takeovers of companies. The hedge fund has asked investors for $2 billion to take companies private, according to people familiar with the matter. While Elliott has bought companies in..
A London Hedge Fund Giant Is Looking to Build Low-Income Homes (Bloomberg)
An acute shortage of subsidized housing for low-income families in the U.K. is drawing some unexpected investors. Man Group Plc, the world’s largest publicly traded hedge fund manager, is poised to start a fund to finance construction of affordable homes, according to a person with knowledge of the matter. Man has hired former Cheyne Capital Management (U.K.) LLP partner Shamez Alibhai to run the pool, the person said, asking not to be identified because the information is private.