MOVES-Activist Hedge Fund Sarissa Hires President in Push for Growth (Reuters)
BOSTON, April 4 (Reuters) – Sarissa Capital Management LP, the activist hedge fund run by Alexander Denner that invests in pharmaceutical and healthcare companies, has hired asset management veteran Eric Vincent as president, according to his LinkedIn profile and two people familiar with the matter. Sarissa is seeking to cross the $1 billion mark in assets under management by attracting new investors at a time when demand for hedge funds is picking up again. Scale is important for firms like Sarissa, which pressure companies to adopt their proposals and give them board seats.
Here’s How Citadel, Point72 Fared Against Multi-Strategy Peers (Bloomberg)
The first-quarter numbers are in for several of the biggest hedge fund managers who invest billions of dollars across strategies and asset classes. For the most part, the results are underwhelming. Of six major funds for which returns were available, all underperformed the broader global equity market, which rallied the most in nine years last quarter. With bond indexes also gaining, the pressure on hedge funds to prove their mettle — and justify their fees — continues. The average multi-strategy hedge fund gained 1.24 percent, according to preliminary asset-weighted estimates by Eurekahedge.
Third Point Up 9 percent in First Quarter, Fueled Largely by Nestle Gains (Reuters)
BOSTON (Reuters) – Third Point LP returned 9 percent in the first quarter of 2019 fueled largely by gains at Nestle, which was publicly critiqued by the hedge fund in 2018 for its “muddled strategic approach,” an investor said. The Swiss-based food giant, maker of KitKat bars and Perrier water, contributed 1.5 percent in gains to $14 billion Third Point’s portfolio during the first three months of the year, the investor said. Nestle has gained 19.54 percent since January.
Alcur Sends Aggressive Sister Fund to the Races (Hedge Nordic)
Stockholm (HedgeNordic) – More than a decade after starting their flagship hedge fund Alcur, Stockholm-based asset manager Alcur Fonder sends a new fund to the races. The new fund, Alcur Select, designed to capture superior risk-adjusted returns in Nordic smaller-cap stocks, was one of last year’s more prominent hedge fund launches as the rookie fund was nominated in the “New Fund of the Year” category at the Eurohedge awards 2018. Portfolio manager Wilhelm Gruvberg (pictured) managed to return around 26 percent in less than a year with Alcur Select since launching in May of last year. Alone in the first months of 2019, the fund gained 20.5 percent. Maybe more importantly, the young vehicle came through last year’s turbulent fourth quarter without any deep scratches despite its long bias.
Adapt, Evolve, Overcome – Investors’ Outlook for 2019 (Preqin)
Early 2019 represents a pivotal point in time for the alternative assets industry. Having enjoyed a period of steady growth over the past decade, with total assets under management (AUM) at a record $9.44tn as of June 2018 (the latest data available), it is quite clear that this environment has begun to change. In November 2018, we conducted a survey of over 400 investors to understand their current views on each asset class, the challenges they are facing and their plans for the next 12 months.
‘Glorified Test Net’: Billionaire Novogratz Slams Litecoin, Screams ‘Buy Bitcoin’ (CCN.com)
Crypto trader Mike Novogratz fails to see the value in Litecoin. Novogratz, who is at the helm of crypto merchant bank Galaxy Digital, blasts Litecoin’s size and in doing so seems to comes across as threatened by the fifth-biggest cryptocurrency. The Litecoin price has seen its value expand by 40% in April alone, gains that if you ask Novogratz would be better served by bitcoin. The former Fortress hedge fund manager capitalized on Litecoin’s reputation as being digital silver to bitcoin’s gold, comparing the size of the respective precious metal and crypto markets. While silver’s market cap is a mere fraction of gold’s, Litecoin’s value is more than 6% that of bitcoin.
Canadian asset manager Ninepoint Partners Launches Ninepoint Trade Finance Fund (Opalesque.com)
Canada’s alternative asset manager Ninepoint Partners has launched Ninepoint Trade Finance Fund. The fund was launched together with US-based alternative asset management company Highmore Group Advisors acting as Advisor to originate and underwrite transactions that meet the investment guidelines of the fund. Ninepoint Partners, that oversees approximately $2.5bn in assets under management, said in a press release that the new fund will provide institutional and high-net-worth investors and their advisors access to asset-based, purchase order & supply chain financing and factoring to small and middle-market companies across the U.S. Terms typically range from 30-120 days. The investment process includes multiple layers of underwriting and risk oversight.
Putting The Hedge Back In Hedge Fund (Forbes)
When do brand names become generic? Growing up, making a copy was to Xerox it – whether or not the machine was made by Xerox. Kleenex is synonymous with pocket tissues, and Band-Aids are used instead of adhesive bandages; beyond being just brand names, these brands monopolized the market early, eventually dominating and becoming fully entangled with their offerings. For Hedge Funds, the synonymity ties back to those halcyon days when the first hedge funds used to actually hedge their portfolios against risk.