Hedge Fund News: Carl Icahn, Alan Howard, Adage Capital

Icahn ‘Hopeful’ Trump Wins Presidency on Economic Stance (Bloomberg)
Investor Carl Icahn said he is “very hopeful” that Republican presidential candidate Donald Trump will win in November, praising the nominee’s economic policy speech on Monday. “If he sticks with that economic theme, he should definitely win hands down because I don’t know why you wouldn’t vote for him,” Icahn said Tuesday in a live phone-in interview with CNBC. Icahn, who endorsed Trump in September, reiterated his support for the candidate, while acknowledging his fellow billionaire has “made mistakes” — particularly last week. He said he talks to Trump and expresses his views, but didn’t join the official advisory group. Icahn said he wants to keep his options open to potentially fund a political action committee addressing his business and economic concerns.

Brevan Howard’s Main Fund Down 1 Percent In Year To End-July – Sources (Reuters)
Leading European hedge fund Brevan Howard‘s main fund was down 1 percent in the year to the end of July, two sources said, handing back gains made after Britain’s vote to leave the European Union. British billionaire Alan Howard‘s $16 billion (£12.32 billion) fund, the performance of which is closely held, had gained 1 percent on June 24, the day after the referendum, to take its year-to-date performance at that point to 0.45 percent. Howard’s main fund, which uses macroeconomic analysis to bet on a variety of securities, has struggled in recent years, losing 1.99 percent in 2015 to post its second consecutive year of losses.

Adage Capital Trailing Stocks Says ‘Smart Beta’ Distorts Market (Bloomberg)
For the first time since it started 15 years ago, Adage Capital Management is trailing the stock market. One reason for the rare underperformance, according to the almost $28 billion hedge fund: The rise of factor-based investing. Adage Capital, founded by two former money managers at Harvard University’s endowment, gained 1.1 percent in the 12 months ending June 30, according to its quarterly letter, the first underperformance for a fiscal year. The S&P 500 Index returned 4 percent in that period. The Boston-based hedge fund, which takes long and short positions on stocks, said factor-oriented investing creates a wedge between the price of equities and their fundamental values.