Another Hedge Fund Veteran Is Quitting a Brutal Market (Bloomberg)
(Bloomberg) — Philippe Jabre is returning money to investors after an “especially challenging” year, adding to the swelling list of hedge-fund veterans giving up on an industry where money-making opportunities have dwindled. Geneva-based Jabre Capital Partners SA is returning client money in the three funds personally managed by Jabre, said Mark Cecil, one of the firm’s founding partners. The remaining two funds, one focused on emerging markets and the other on European credit, will keep operating with outside money, he said.
British Hedge Fund Boss Takes on Trump’s Indian Property Partners (Yahoo UK)
One of Britain’s most prominent hedge fund bosses is taking on an Indian property company that has partnered with US President Donald Trump on building projects. TCI head Sir Christopher Hohn and a group of around 400 other investors have demanded that the management team step down at property developer Ireo. It has been alleged that the team stole assets from the company,based in the tech hub of Gurgaon near Delhi, the Financial Times reports.
Juul’s Soaring Valuation Is a Boon for Hedge Funds (The Wall Street Journal)
Several large investment firms are sitting on windfalls from e-cigarette maker Juul Labs Inc.—and plan to continue backing the controversial startup despite the risk of increased regulation. Tiger Global Management LLC, Darsana Capital Partners LP, D1 Capital Partners LP, Marianas Fund Management LLC and Coatue Management LLC have invested in Juul at various points over the last two years, according to people familiar with the firms. Juul has rapidly appreciated in value, rising to a roughly $16 billion valuation last summer.
Warren Buffett, IBM and Other Hedge Funds (GuruFocus.com)
Earlier this year I wrote on Warren Buffett (Trades, Portfolio)’s IBM (NYSE:IBM) expedition. I set out to try to figure out how much the Oracle of Omaha had lost on his holding in Big Blue from when he first acquired the position in 2011 to when he finally disposed of the last of his holding in 2017. As the only information available to me was 13F filings, it was always going to be challenging to try to compute an exact profit or loss figure. How much did Buffett lose? However, a careful analysis of the figures shows that Buffett disposed of his position at a price of between $174 and $153 per shares in 2017. The lowest the stock traded in the year was $140 with an average price of $153.
A Surge in Shutdowns, Lagging Performance, and Slashed Fees: Hedge Funds Have Had a Brutal 6 Months (Business Insider)
The recent market volatility that has been top-of-mind for retail investors, politicians and Wall Street mainstays hit hedge funds hard, according to a new report from Hedge Fund Research. “Financial market volatility accelerated through the third quarter and into year-end on ongoing trade and tariff negotiations, contributing to decreased investor risk tolerance and an increase in fund liquidations,” said Kenneth Heinz, president of HFR. Hedge funds, on aggregate, were down 3.1% in October and are down 2% through the first 11 months of the year. Prominent investors like John Paulson, Jason Karp, Dmitry Balyasny, and Dan Och have all returned money to investors after shuttering funds this year.