Bitcoin endorsed by top hedge fund manager (Financial Times)
Financial advisers who gathered in New York to hear leaders of the asset management industry impart their best investment ideas for the year ahead were given a surprising tip by one prominent hedge fund manager: Bitcoin. Michael Novogratz, co-chief investment officer of macro funds at the $55bn Fortress Investment Group, used a panel discussion on the prospects for emerging markets to trumpet the much-hyped digital currency, which he said could be used as a cheaper way of transferring money in countries with weak banking systems. Even if that did not come to pass, he said, there could be money to be made from a Bitcoin bubble along the way.
Ackman to Sell Part of His Stake in Canadian Pacific (New York Times)
More than a year after the activist investor William A. Ackman won a bitter battle for control of the Canadian Pacific Railway Limited (USA) (NYSE:CP), he is cashing in part of his investment at a substantial profit. On Thursday, Mr. Ackman’s hedge fund Pershing Square Capital Management said it would sell around $800 million of its stake in Canadian Pacific, or 5.9 million shares, in an open market transaction at an undisclosed price per share. Following the sale, Pershing Square will hold a 9.8 percent stake in the company and will remain Canadian Pacific’s largest shareholder.
Is Icahn’s Case for Apple at $1,250 Flawed? (Insider Monkey)
Carl Icahn thinks Apple Inc. (NASDAQ:AAPL) stock could soar to $1,250 in the next three years, giving investors who own Apple at $525 a 33.5% annualized return. He laid out the scenario in his open letter to Apple CEO Tim Cook, made public this morning. As he has previously suggested, it would take a $150 billion buyback. This prompts two questions: 1. Is the proposed buyback realistic? 2. If the buyback were executed, could shares really appreciate to $1,250 in three years?
Hedge Funds Moot Argentine Debt Deal (FINalternatives)
Hedge funds hoping to head off another Argentine debt default have proposed to pay their peers holding out from the last default. The hedge funds in question, including Brevan Howard Asset Management and Gramercy Funds Management, hold restructured Argentine debt. In debt exchanges in 2005 and 2010, the overwhelming majority of Argentine bondholders accepted huge losses in exchange for new bonds—but U.S. court rulings have thrown into question whether Argentina can continue to pay its obligations on those bonds while refusing to pay the holdouts, led by Aurelius Capital Management and Elliott Management.
Few advisers recommend alternative investments (InvestmentNews)
Financial advisers shy away from alternative investment products because most are too difficult to explain to clients, a new study shows. Only a quarter of advisers invest regularly in hedge funds, private equity and commodities, according to a study released Thursday by Natixis Global Asset Management. Although the majority of the 1,300 advisers surveyed as part of the study have invested over time in a mix of alternatives, just 25% use them on a regular basis. Those who typically use alternative investments are those who work with high-net worth investors.
Mick McGuire, Marcato Reiterate 6.7% Stake in Sotheby’s, Issues Presentation (Insider Monkey)
In a new filing with the SEC, Marcato Capital Management, a hedge fund managed by Richard McGuire, disclosed its presentation during the “Excellence in Investing: San Francisco” conference held yesterday. In the presentation, Marcato presented its case on Sothebys (NYSE:BID), and expressed its ideas regarding the company’s value. The key points Marcato made were that Sotheby’s owned real estate and financing operations are strengths that investors may be overlooking. Marcato holds around 4.6 million shares of Sotheby’s, which represent about 6.7% of the company.
Hedge Fund Tipster’s Conviction Upheld (FINalternatives)
Winifred Jiau, one of the expert-networkers convicted of passing tips to hedge fund managers, will not be getting out of prison. The U.S. Second Circuit Court of Appeals in New York yesterday rejected Jiau’s appeal yesterday, upholding her conviction on conspiracy and securities fraud charges. Her lawyers had argued that the trial judge should not have allowed the jury to hear wiretapped phone calls between her and hedge fund manager Samir Barai, and that the information she provided was not material. Jiau, a former consultant at Primary Global Research, was convicted in June 2012 of selling confidential information about two technology companies to two hedge fund managers.
54% of hedge funds and fund managers are hiring techies. Here’s where the jobs are (eFinancialCareers)
While investment and retail banks are seeking ways to pare back technology costs and move jobs to cheaper locations, hedge funds and asset managers are facing rising IT budgets and a skills shortage of talented developers. Like investment banks, the buy-side has been hit with a series of new regulations, which is weighing heavy on the technology teams. The Alternative Investment Fund Management Directive (AIFMD), Foreign Account Tax Compliance Act (FACTA) and the Retail Distribution Review (RDR) are all prompting the need to invest in technology among fund managers and hedge funds, but they’re also going ahead with more innovative projects, according to a survey of 80 buy-side chief technology officers by Hays Finance Technology.
Dame Amelia to speak at BMA forum (Royal Gazette)
A top hedge fund regulator has been lined up for a major conference run the Bermuda Monetary Authority’s regulatory forum. Dame Amelia Fawcett, chairman of the Hedge Funds Standards Board, will be the keynote speak for the one-day event, to be held at the Hamilton Princess next month. And panel speakers at the forum will also include Sir Andrew Large, a former deputy governor of the Bank of England and Commissioner James Donelon, president of the US National Association of Insurance Commissioners.
Investors want better governance, not new regulations from hedge funds (Opalesque)
Investors are demanding better governance and codes of conduct from hedge fund and other alternative fund managers rather than new regulations, a new study by independent fund governance provider Carne Group has found. In the survey, Aico.com reported that 95% of investors prefer industry wide codes of conduct from pension funds, consultants, fund of funds, private banks, and sovereign wealth funds. A significant 83% are demanding independent directors from the funds’ boards while 62% of those polled want the chairman of the board to be independent as well.
Former hedge fund manager aims to coach traders like athletes (Financial News)
Boris Pilichowski, a former proprietary trader and hedge fund manager, has set up a new firm that sets out to coach and motivate traders as if they were professional athletes. Axis Minds, based in London, provides advisory services on organisation and strategy, as well as coaching for portfolio managers and management. The new firm will also focus on areas such as leadership, management, communications skills, conflict resolutions and stress management. Pilichowski told Financial News: “The sport of hedge funds is now a championship. We provide a similar service as the one of a coach of a sports team: we motivate, we challenge, we film the matches and we review the process…”
Brevan Howard moves bulk of operations out of UK (Financial Times)
Brevan Howard, the world’s third-largest hedge fund, has moved most of its operations out of the UK, shifting dozens of jobs to the Channel Islands, Switzerland, Asia and the US to escape EU regulation and grow internationally. Three years after opening a satellite office in Geneva, Brevan – which has $41bn under management – now only has a “handful” of traders left at its London office and has moved out many of its senior operational jobs, people familiar with the company told the Financial Times.
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