Och-Ziff Lures Cash With CLOs as Its Hedge Fund Clients Flee (Bloomberg)
Och-Ziff Capital Management Group LLC succeeded in pulling in fresh capital for a second straight quarter, but the cash didn’t come from their hedge funds — which keep losing money. Net inflows of $1.2 billion came from issuing collateralized loan obligations in the period ended June 30, the New York-based firm said in a statement Thursday. The hedge fund business — where billionaire Dan Och’s firm generates most of its fees — saw $367 million in withdrawals from its multistrategy funds and another $51 million from its credit funds.
Einhorn Reinsurer to Borrow Cash for Buybacks After Stock Slump (Bloomberg)
Greenlight Capital Re Ltd., the reinsurer where David Einhorn oversees investments, plans to borrow $100 million to buy back equity after the stock lost more than a quarter of its value this year. The company will offer convertible notes due 2023, according to a regulatory filing Thursday. The securities are being offered through a private sale and Greenlight Capital Re said it plans to repurchase up to one million Class A shares.
Tesla Share Spike Deals Short-sellers a $1.1-billion Loss (Reuters)
Tesla’s rapid cash burn and struggles at turning a profit have made it a favorite target for shorts, including some big names such as Jim Chanos, head of Kynikos Associates, and Billionaire hedge fund manager David Einhorn’s Greenlight Capital fund. But a sharp rally in the electric car maker’s shares since early April has hurt short-sellers. On Tuesday, Einhorn told investors that with Tesla’s shares rallying sharply, a bet against the stock had turned into heavy second-quarter losses at his Greenlight Capital fund.