BlueMountain’s Future Is Dimmer After the Hedge Fund Shuttered Its Equity Book (Barron’s)
A once rising-star hedge fund seems to have hit a snag. It might be another chapter in the age-old book Bond Managers Struggle When They Try To Do Stocks. The back story. Last week, Affiliated Managers Group (ticker: AMG) detailed its stake in hedge fund BlueMountain Capital in a filing—a stake it recently wrote down by hundreds of millions of dollars. AMG buys equity stakes in asset managers like hedge funds and profits when those firms grow. Its 70-plus affiliates oversee a cumulative $778 billion.
Column: Hedge Funds Cautious on Oil as Economic Outlook Darkens (Reuters)
LONDON (Reuters) – Hedge fund managers have started to turn more bearish on oil as concerns about a slowing global economy and an over-extended price rally outweigh fears about sanctions and supply disruptions. Hedge funds and other money managers were net sellers of 25 million barrels of futures and options in the six major contracts linked to petroleum prices in the week to May 7 (tmsnrt.rs/2LBMvYo). Portfolio managers have now sold a total of 42 million barrels in the last two weeks, after buying 609 million over the previous 15 weeks since Jan. 8, according to position records published by regulators and exchanges.
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Guernsey Event-driven Hedge Fund up 10% YTD, to Gain from Lighthouse Takeover (Opalesque.com)
The Helium Rising Stars Fund, which follows an event-driven, special situations strategy, returned +3.4% in April in its GBP share class (3.2% in its CHF class), and announced that its largest fund holding had received a cash offer. The fund’s co-investment adviser, ISP Capital, reports in a monthly update seen by Opalesque on 10th May that the largest holding of the fund, London-based financial advice firm Lighthouse Group, received a cash offer from Intrinsic, a subsidiary of the wealth management company Quilter. The offer price is not very generous, but in the present guarded climate and continuing Brexit caution, other bidders appear reluctant to engage. If the takeover goes through, it would be a third large takeover for the fund since inception, with an investment profit in this case of more than £5m ($6.5m).
SS&C GlobeOp Hedge Fund Performance Index at 0.90 per cent for April (HedgeWeek.com)
The gross return of the SS&C GlobeOp Hedge Fund Performance Index for April 2019 measured 0.90 per cent. Hedge fund flows as measured by the SS&C GlobeOp Capital Movement Index advanced 0.33 per cent in May. “SS&C GlobeOp’s Capital Movement Index for May 2019 rose 0.33 per cent reflecting positive net flows. his increase was closely in line with the 0.41 per cent gain in net flows reported for the same period a year ago,” says Bill Stone (pictured), Chairman and Chief Executive Officer, SS&C Technologies. “Hedge fund capital flows continue to trend at favorable levels, indicating investors have confidence hedge managers can generate attractive risk-adjusted returns even in strong directional markets like we’ve seen year to date.”
Hedge Funds positioned to make millions from Metro Bank turmoil (VoxMarkets.co.uk)
More than 11% of Metro Bank (MTRO) shares are held by Hedge Funds shorting the company’s stock, according to the FCA’s short position disclosures. Hedge Fund Titan Crispin Odey is among those betting on Metro Bank’s shares falling. Odey Asset Management have been short the challenger bank for quite some time, holding a 3.83% short position. Other Hedge Funds with short positions include a 1.18% position by Polar Capital (£13.8 billion AUM) and a 1.89% short position by Marshall Wace ($39 billion AUM).
Luciano Aims to Set VGI Partners Up ‘For the Long Run’ (AFR.com)
VGI Partners founder Rob Luciano says the hedge fund’s initial public offering will help him avoid the mistakes made by other fund managers in failing to plan for their own succession. The Sydney- and New York-based hedge fund with $2.1 billion of assets under management is raising an additional $300 million through a rights issue of listed investment company units. But investors in the raising will also be offered 20 per cent of VGI Partners’ management company through a $75 million initial public offering that Mr Luciano says is motivated mainly by a desire to “further improve the long-term alignment” between the fund’s investors and its staff.
Hedge Funds Gains in April Bring YTD Return to +7.2% (Opalesque.com)
With all round gains across all main strategies led by Event-Driven and Macro in April, Hedge funds extended gains from the strongest 1Q since 2006. The HFRI Fund Weighted Composite Index advanced +1.6% for the month, bringing the YTD return to +7.2%, said HFR. The HFRI Asset Weighted Composite Index advanced +1.7% for the month, said the latest media reference guide from HFR. Risk Parity and Bank Systematic Risk Premia also gained for the month, led by the HFR BSRP Credit Index, which surged +5.9% in April, bringing the YTD return to +12.6%. Risk Parity strategies added to strong 1Q gains with the HFR Risk Parity Vol 15 Index advancing +1.0% in April, increasing the YTD return to +16.5%. BSRP sub-strategies also surged for the month, with the HFR BSRP Credit Momentum vaulting +10.1% and the HFR BSRP Currency Multi-Style Index jumping +8.4%.
Scaramucci Vegas Show Returns With Focus on Trump Insiders (Bloomberg)
The Mooch came back to Vegas this week, but it was a different kind of gig. After putting his SkyBridge Alternatives Conference on hold last year following a rough patch — a foul-mouthed interview led to his firing after 11 days at the White House, then came his investment firm’s scrapped deal with HNA Group Co. — Anthony Scaramucci struck a more restrained tone for the 10th anniversary of his swanky hedge fund show. As investors flocked to the Bellagio hotel in Las Vegas for three days of panels and hobnobbing, gone were the celebrities and fund titans that presented in years past.
Argo Group Gets Backing in Proxy Fight with Voce Capital (Express News)
Argo Group International Holdings, the specialty insurer with its U.S. headquarters in San Antonio, has received support in its proxy battle with Voce Capital Management. Proxy advisory firm Institutional Shareholder Services, which counsels institutional investors on corporate governance issues at publicly traded companies, recommended Argo shareholders vote for the insurer’s five directors and against Voce’s nominees for the board.
The Pres. & CFO of Affiliated Managers (NYSE: AMG) is Buying Shares (Analyst Ratings)
Today, the Pres. & CFO of Affiliated Managers (AMG), Jay Horgen, bought shares of AMG for $1.03M. This recent transaction increases Jay Horgen’s holding in the company by 10.52% to a total of $10.9 million. This is Horgen’s first Buy trade following 7 Sell transactions. Currently, Affiliated Managers has an average volume of 991.3K. Based on 3 analyst ratings, the analyst consensus is Moderate Buy with an average price target of $114.33, reflecting a 21.1% upside.
Monday 5/13 Insider Buying Report: MGM, AMG (Nasdaq.com)
At MGM Resorts International, a filing with the SEC revealed that on Wednesday, Director Paul J. Salem bought 800,000 shares of MGM, for a cost of $25.40 each, for a total investment of $20.32M. Bargain hunters can buy MGM at a price even lower than Salem did, with the stock trading as low as $24.75 in trading on Monday – that’s 2.6% below Salem’s purchase price. MGM Resorts International is trading down about 2% on the day Monday.
Hamilton Beach Brands Holding Co (HBB) Director, President and CEO Gregory H Trepp Bought $101,160 of Shares (GuruFocus.com)
Director, President and CEO of Hamilton Beach Brands Holding Co (NYSE:HBB) Gregory H Trepp bought 6,000 shares of HBB on 05/10/2019 at an average price of $16.86 a share. The total cost of this purchase was $101,160. Hamilton Beach Brands Holding Co, through its subsidiaries, is engaged in consumer, commercial and specialty small appliances and specialty retail. The company earns maximum revenue from the sale of appliances. Hamilton Beach Brands Holding Co has a market cap of $231.050 million; its shares were traded at around $16.68 with a P/E ratio of 11.20 and P/S ratio of 0.32. The dividend yield of Hamilton Beach Brands Holding Co stocks is 2.05%.
Notable Insider Buys This Past Week: Annaly Capital, MGM and More (Benzinga)
Here’s a look at a few notable insider purchases reported in the past week. MGM Resorts: MGM Resorts International MGM 0.72% saw a director last week acquire 80,000 shares of this Las Vegas-based hospitality and entertainment company. At share prices ranging from $25.07 to $25.69, the transaction totaled more than $20.32 million. Note that four other directors recently exercised options on less than 5,000 shares each.
Mr. Cooper Group Inc (COOP) PRESIDENT & CEO Jesse K Bray Bought $495,238 of Shares (GuruFocus)
PRESIDENT & CEO of Mr. Cooper Group Inc (NASDAQ:COOP) Jesse K Bray bought 52,910 shares of COOP on 05/09/2019 at an average price of $9.36 a share. The total cost of this purchase was $495,238. WMIH Corp is a reinsurance company. It owns a legacy reinsurance business that is currently operated in runoff mode by WM Mortgage Reinsurance Company, Inc. Mr. Cooper Group Inc has a market cap of $841.280 million; its shares were traded at around $9.24 with and P/S ratio of 1.84.
Final Judgment Entered Against Former Broker for Defrauding Customers (HedgeCo.Net)
(HedgeCo.Net) A federal district court entered a final consent judgment against a broker who was charged with defrauding customers by making unsuitable and unauthorized trades and churning customers’ accounts, which enriched the broker at the customers’ expense. The SEC’s complaint, filed in the Southern District of New York, alleges that from July 2012 to October 2014, Rocco Roveccio, a New Jersey resident, recommended to seven customers a pattern of high-cost, in-and-out trading without any reasonable basis to believe that his customers could make a profit. Roveccio’s recommendations resulted in losses for the customers and gains for Roveccio. Roveccio allegedly also lied to his customers about the potential for the accounts to profit. The complaint also alleges that Roveccio engaged in unauthorized trading and churning.
