Two of the biggest and most successful hedge fund managers hugely bearish on India (Moneylife)
Two of the world’s biggest and most successful hedge fund managers are very pessimistic on India and have cautioned investors that investing in India will be fraught with big risks. Jeff Gundlach, who manages a hedge fund DoubleLine Capital LP, believes that India’s currency is weak because of reliance on foreign capital and that he would rather not own Indian stocks. He also said that India’s stock markets look “very scary” because of high oil prices and rupee depreciation. He is short India amongst emerging market countries. Ray Dalio, another hedge fund who manages $150 billion in assets at Bridgewater Associates was quoted as saying that India should “prepare for the worst” since it has been one too vulnerable to foreign capital inflows which may now avoid emerging markets.
Top hedge fund in bid to shape up Sotheby’s (Reuters)
Hedge fund manager Mick McGuire is not an art collector and has never felt the thrill of bidding in a Sotheby’s auction, where adrenaline spikes with each multimillion-dollar sale of a Cezanne, Rothko or Picasso. Still, he has ideas on how the 269-year-old auction house might do better for shareholders, and since June has built up a 7 percent stake to allow him to take some of his proposals to management. A former partner at William Ackman’s Pershing Square Capital Management, McGuire is now running Marcato Capital Management, one of the country’s hottest hedge funds.
London hedge funds secure victory over pay (Financial Times)
Hedge funds are set to benefit from more lenient rules governing pay than originally expected under new draft proposals from the UK regulator. The Financial Conduct Authority published guidelines detailing how it plans to implement the Alternative Investment Fund Managers Directive, which aims to curb the buccaneering habits of the alternative fund industry in Europe. The hedge fund industry was particularly concerned by the potential impact of new pay measures, which will force managers to receive half of their pay in units of their funds and to defer payment over longer time periods.
Investment fund boosts stake in YRC Worldwide to nearly 12 percent (Kansas City Star)
Solus Alternative Asset Management LP, a hedge fund operated by Christopher Pucillo, disclosed in a regulatory filing that it now owns 1.34 million shares, or 11.78 percent, of the Overland Park-based trucking company. The fund previously held about 336,372 shares, or 3.1 percent, of YRC Worldwide, Inc. (NASDAQ:YRCW), based on June 30 records. Shares in YRC climbed nearly 18 percent Tuesday and closed at $20.95, probably in response to the Solus investment. YRC shares slipped back 65 cents Wednesday and closed at $20.30.
Partners Group To Sell Hedge Fund Unit (FINalternatives)
Swiss private-equity firm Partners Group plans to exit the hedge-fund and wealth-management businesses after posting weak first-half numbers. The Zug-based firm said yesterday that it would sell its remaining interests in Asset Management Partners and an undisclosed hedge fund business to the firms’ management. The moves will cut about €800 million from Partners’ €30 billion in assets under management. The sales are expected to be completed in the second half. Terms were not disclosed.