Investors Resist Cashback Offer from Hohn’s TCI Fund (The Telegraph)
The majority of investors in The Children’s Investment Fund (TCI), the British hedge fund run by Sir Christopher Hohn, have shunned a chance to redeem money after up to $1.25bn (£980m) of uninvested cash was offered for return. The fund has made gains of 24pc so far this year and TCI, one of Europe’s largest hedge funds with around $24bn in assets, wrote to investors at the end of March saying that given its significant performance it would offer them the chance of redeeming up to 5pc of the money they had invested.
Hedge Fund Opposes Brookfield Offer for Teekay Offshore Stake (PEHub.com)
U.S. hedge fund JDP Capital Management said it and other minority unit-holders of Teekay Offshore Partners LP (NYSE: TOO) oppose Brookfield Asset Management‘s proposed acquisition of the midstream services provider. Brookfield’s private equity group, which owns 73 percent of the company, this month offered to buy the remaining interest for US$1.05 per unit. In an open letter, JDP said it believes Teekay Offshore is worth at least US$4 per unit today based on a cash flow analysis and peer comparisons.
Hedge Fund Industry Grows to $3.56tn in Q1 with Credit and Macro Registering Inflows (Opalesque.com)
Marking the fourth consecutive quarter of outflows, $22.1bn left the hedge fund industry in Q1 2019 – and yet, despite this net capital withdrawal, industry assets under management (AuM) grew by 3.3% to reach $3.56tn. According to Preqin, despite only 37% of credit strategies funds recording inflows, the strategy attracted net inflows of $6.6bn in the quarter. Only macro strategies were able to join credit strategies in positive capital flow territory with a modest $0.1bn. Equity strategies suffered a $9.9bn outflow in Q1, the largest recorded by any top-level strategy tracked by Preqin.
How To Pick Hedge Funds: 3 Common Traps To Avoid (Seeking Alpha)
If you consistently make a good deal of money, it’s likely that your lifestyle will lead you to cross paths with one or more people who will pitch you an investment opportunity. Some of these opportunities will be good, some not so much. Finding one or more investment managers with a genuine edge can make you a ton of money–just ask anyone who invested with Warren Buffett when he was young. However, the lure of getting a piece of other people’s money leads thousands of poorly skilled managers to solicit business, running the gambit from smooth talkers with no edge to outright fraudsters.
Opalesque Roundup: Hedge Funds are Gaining Steadily This Year But for One Large Credit Fund Things Don’t Work Out as Planned: Hedge Fund News, Week 19 (Opalesque.com)
In the week ending May 24th 2019, hedge funds are gaining steadily this year but still lagging well behind the broader market. The $3.2 trillion industry is up 7% through April while the S&P 500 popped 17.5%, according Preqin. Strong hedge fund performance was additive to industry assets in April, putting overall industry assets at $3.288tn. Angelo Gordon’s $1.5 billion multi-strategy hedge fund, known as the Super Fund, has returned 3.4% through April, but a letter to investor says the firm has lost two portfolio managers that started the firm’s liquid credit strategy. BlueMountain Capital‘s Credit Alternatives Fund posted nearly a 4% loss in the first quarter, an investor letter shows, while the rest of the industry gained nearly 6% on average.
Tech Hedge Fund Beats Nasdaq by Looking for Key Inflection Points (Bloomberg)
Lucrative opportunities in technology stocks center around identifying shifts from an old way of doing things to a better way, like from email to instant messaging or from phoning in food orders to doing it online. Investing with that in mind for nearly a decade has helped Silicon Valley-based Light Street Capital beat the Nasdaq, according to Barron’s in its May 27 issue.