Ackman Scores Big November On Fannie, Freddie Gains (The Wall Street Journal)
William Ackman sliced in half his losses for the year after a strong November at Pershing Square Capital Management LP. Mr. Ackman’s flagship private fund rose 9.6% in November and its international fund rose 9.8%, according to people familiar with the matter. Mr. Ackman’s flagship fund is still down 10.1% in 2016, the people said, on top of losses in 2015, largely due to Valeant Pharmaceuticals International’s sharp decline. Pershing Square Holdings, Mr. Ackman’s Amsterdam-listed fund, is down 13.5% for the year, up from a 22.5% decline through October. The public fund uses more leverage than the flagship fund.
Exclusive: Staff Drops At Hintze’s CQS As Hedge Funds Tighten Belts (Reuters)
Staff numbers at CQS, the hedge fund run by billionaire investor Michael Hintze, have fallen sharply, with the Australian saying rivals must adapt to a rapidly changing industry. Over the past 18 months, headcount at CQS has fallen by 18.5 percent, or roughly 50 people, a person familiar with the company told Reuters. After a tough 2015, all the main funds of CQS, which manages $12 billion, are now in the black. The industry, which is famed for its stellar returns and high fees, is generally under pressure due to heavy withdrawals this year. “The industry needs to adapt and we, as a business, are also doing so,” Hintze said in an email to Reuters. “We have streamlined the business and we are focused on delivering performance for investors,” he added. “We have an organization that is focused on targeting returns and growth.”
Hedge-Fund Firm Moore Capital Cuts Management Fee On Largest Fund (The Wall Street Journal)
Moore Capital Management, the hedge-fund firm run by billionaire Louis Bacon, has cut charges for investors in its biggest fund. The New York-based firm, one of the industry’s best-known with $14 billion in assets, said in a letter to investors reviewed by The Wall Street Journal that it would cut the management fee on its $7.5 billion Macro Managers fund to 2.5% from 3%. The move is “a reflection of our sensitivity to changes in the industry as a whole,” the firm said in the letter. The cut, which will come into effect from January, comes near the end of a tough year for the Macro Managers fund. After large losses in January and February, the fund is down 3.8% in the first 10 months of the year.