Judge Tosses Hedge Fund’s Lawsuit Against Neiman Marcus (The Wall Street Journal)
A Texas judge Tuesday dismissed a bondholder lawsuit against Neiman Marcus Group over the company’s transfer of its MyTheresa e-commerce business beyond the reach of bondholders. Judge Tonya Parker of Dallas County District Court dismissed a lawsuit filed in December by Marble Ridge Capital LP that alleged that the company’s transfer of its MyTheresa e-commerce business was a fraudulent transaction.
Hedge Fund Veteran Says $130 Billion Bond May Just Fix Venezuela (Bloomberg)
Venezuela watchers have floated plenty of ideas for fixing the economic and humanitarian crisis, from a bitcoin drop to an oil-for-food plan, but the idea of wrapping all the nation’s debt into one giant bond issuance is perhaps the wildest proposal yet. Money owed to a disparate group of creditors including China, Russia, bondholders and oil service firms could be turned into one long-dated $130 billion bond, according to Daniel Osorio, a former hedge fund manager who’s now president of New York-based Andean Capital Advisors, which advises money managers on Latin America.
If This Is Failure, Show Me Success (The Wall Street Journal)
In a nearly 200-page presentation calling for investors to reject Bristol-Myers Squibb’s proposed acquisition of Celgene released on Monday, activist hedge fund Starboard Value called Celgene’s pipeline of new drugs “unproven.” The hedge fund said relying on that pipeline “adds incredible risk” for Bristol-Myers and could force additional acquisitions in the future. One example Starboard cited is Merck & Co’s $47 billion deal for Schering-Plough back in 2009.
Asian Hedge Funds, Distressed Debt will Drive Investor Demand in 2019 – Deutsche Survey (Pensions&Investments)
Asian hedge funds and distressed debt strategies will drive investor demand in 2019, according to an annual survey of 425 allocators conducted by Deutsche Bank’s hedge fund capital group. In its 17th year, the survey of allocators managing or advising on $1.74 trillion in hedge fund assets, found investors plan to increase their exposure to hedge funds despite underperformance.
Hedge Fund-backed Think Tank Manhattan Institute Publishes Blog Post Sympathizing with Killer the Day After Christchurch Attack (Eyes on the Ties)
Last week a magazine called City Journal published an article online about the terrorist attack on two mosques in Christchurch, New Zealand denying that the attack was motivated by white supremacy and arguing that the killer’s obsession with Muslim immigration was a “legitimate concern.” This is extremely troubling on its face, but is even more alarming considering that City Journal is not a fringe outlet, but rather is ensconced firmly in the mainstream of New York politics.
National Enquirer Owner Chatham Asset Management Plays Starring Role in Tabloid-Worthy Stories (Fortune)
The threat was blunt: Back off, or there will be trouble. The 2016 presidential campaign had just ended, and Michael Cohen was fresh off handling hush money for Donald Trump. Now he was working on behalf of Chatham Asset Management, a $4.3 billion hedge fund that owns the National Enquirer. Chatham and the Enquirer’s publisher, David Pecker, had turned to Trump’s fixer as a mediator. They wanted to kill a lawsuit by the former head of another Chatham company. Before long, the Chatham camp would make good on its threat against that executive, unleashing a tale of sex and money worthy of the Enquirer.
Hedge Funds up 0.89 percent in March, Says Eurekahedge (HedgeWeek)
The Eurekahedge Hedge Fund Index gained 0.89 per cent in February, bringing its year-to-date return to 3.26 per cent, according to the March 2019 Eurekahedge Report. The risk-on sentiment among investors driven by the Fed’s patient stance and optimism over the potential resolution of the US-China trade tension persisted through the month, sending global equity markets on a rally through February. The global hedge fund industry saw performance growth totalling USD39.5 billion over the first two months of 2019, supported by the global equity market performance since the beginning of the year. Despite the positive performance figures, net investor redemptions stood at USD15.1 billion over the same period.
Buy Gold, Sell Stocks Is the ‘Trade of Century’ Says One Hedge Fund (Bloomberg)
One of last year’s best-performing hedge funds says the “trade of the century” is to buy gold and sell stocks as risk assets are due for another meltdown. It’s only a matter of time until the bearish bet pays off big, according to Crescat Capital LLC. While the Denver-based firm has only about $50 million under management, it has a history of outperforming the S&P 500 Index — with its Global Macro Fund returning 41 percent last year alone. Now the investment company says it’s ready to capitalize on an end of the economic cycle as indicators warn that a recession is imminent in the coming quarters.