Hedge funds facing shake-up in wake of Madoff scandal (Independent)
THE Irish fund administration sector is set for a major shake-up as hedge funds adapt to the post-crisis, post-Madoff era, according to new research. The study by State Street surveyed 400 hedge fund managers in North America, Europe and Asia for their view on industry changes coming over the next five years. Increasing regulation is one driver of change for the hedge funds industry, but the main catalyst for change is investors seeking greater transparency over how their assets are being managed, the survey found.
Insult to injury? Hedge fund loses $1M, then fires Pennsylvania (Philly)
The Pennsylvania State Employees Retirement System sent a quarter of a billion dollars to Tiger Management, the hedge fund group founded by investment pioneer Julian Robertson, in hopes of pulling down stock-market-like returns with bond-like low volatility, as its chief investment officer put it. Instead, Tiger lost money. SERS offered to give Tiger another chance. No, said Tiger: The hedge fund fired SERS and is sending the money back, minus $1 million it lost.
Hedge Funds Expand Bets With Most Junk Since ’08: Credit Markets (Bloomberg)
Hedge funds have amassed the greatest share of the $1.2 trillion U.S. junk-bond market since the credit crisis, raising concern bets with borrowed cash will accelerate losses when the Federal Reserve stops printing record amounts of money. The funds, which typically use leverage to bolster returns, hold as much as 23 percent of outstanding dollar-denominated high-yield bonds, from as much as 18 percent last year and the highest since 2008, according to Barclays Plc. Credit hedge funds have boosted assets by 89 percent since 2008, outpacing the 66 percent growth of the junk market, data from Hedge Fund Research Inc. and Bank of America Merrill Lynch indexes show.
Hedge Fund Canosa Said to Double Assets in Five Months’ Trading (SFGate)
Canosa Capital LLP, the hedge-fund manager started by two former Rubicon Fund Management LLP executives, more than doubled assets under management since trading began May 1, said two people with knowledge of the fund. Canosa, founded by Tim Attias and Santiago Alarco in partnership with Brummer & Partners, began with $272 million in assets and had about $575 million at the end of September, said the people, who asked not to be identified because the London- based firm is private.
Using Twitter to Move the Markets (NYTimes)
Last week, while everyone was wondering what Twitter is worth after the unveiling of its I.P.O., I spent some time on a little different math. How much could a single post on Twitter be worth? How about $1 billion? Or maybe $6 billion? If the post comes from the fingertips of Carl C. Icahn, the hyperactive hedge fund manager, an argument could be made that there’s gold in those 140 characters. We’ll unpack that value chain in a minute. First let’s stipulate that unless you are a day trader, much of the business news right now is boring.
Jim Rogers, The Commodities Boom Is Not Over (LiveTradingNews)
Jim Rogers, ‘the Chinese-driven commodity boom is not over.” Savvy commodities analysts and participants including Jim Rogers have seen long-running Bull Markets stumble, falter and end, and some not so savvy folks try to predict their end, mostly missing the call. Instead of ending, the Bull Markets turned into a “frenzy” that finished in a “bubble.” “I haven’t seen the frenzy yet,” say Mr. Rogers, who correctly predicted this Chinese-driven a commodities boom. ”I’ve been around markets long enough to know that when everybody’s on one side of the boat, it’s probably not the right side to be on.