Hedge Fund News: Chase Coleman, Daniel Loeb, Phil Frohlich

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Tiger Global Falls 2.9 pct in March, Down 5.3 pct in Q1 (Reuters)
Investment firm Tiger Global Management, one of the hedge fund industry’s most closely watched players, told clients that its hedge fund lost 5.3 percent during the first quarter, an investor said on Wednesday. Much of the decline came in March when the fund lost 2.9 percent, the investor, who is not permitted to speak about the fund publicly, said. Many hedge funds are still compiling quarterly data, but so far the average hedge fund is up 2.27 percent this year, research firm Hedge Fund Research said. Tiger Global, which has a taste for tech-oriented investments, was founded in 2001 by Chase Coleman with the backing of industry legend Julian Robertson.

Chase Coleman Tiger Global Management

Hedge Funds Bet Big on PetSmart Price Bump (Wall Street Journal)
A hedge-fund investing strategy aimed at squeezing more money from corporate takeovers has its biggest test yet: PetSmart Inc. The funds, including Fortress Investment Group LLC and Daniel Loeb’s Third Point LLC, plan to avail themselves of a legal remedy known as “appraisal,” in which a judge determines the fair value of the stock. Little used until about a year ago, the strategy has surged in popularity, attracting ever-larger wagers from hedge funds hungry for returns. These funds typically buy shares just before a deal closes with the intention of seeking more in court.

Pawn to Cushion Payday Lenders from Regulatory Blow (Reuters)
Payday lenders that have substantial pawn operations are better positioned to absorb the blow from proposed U.S. regulations aimed at cracking down on an industry that has been criticized for saddling borrowers with debt they cannot repay.”The proposed rules are so far-reaching that they will basically put the entire small-business portion of this industry out of business,” said Phil Frohlich, a portfolio manager at hedge fund Prescott Group Capital Management LLC, which owns shares of payday lender Enova International Inc.

Hedge Fund Says BNY Mellon is ‘bloated’ with 10,000 Excess Staff (Reuters)
Activist hedge fund Marcato Capital Management on Tuesday said BNY Mellon Corp’s employee base is “bloated” and disproportionately larger than its rivals. Marcato, which owns about 1.6 percent of BNY Mellon’s stock, previously has called for the ouster of Chief Executive Gerald Hassell, saying he has missed profit targets and has failed to streamline the bank’s expense base. BNY Mellon, the world’s largest trust bank, declined to comment. Marcato, a $3 billion fund led by Richard McGuire, said BNY Mellon rivals, including State Street Corp, Vanguard Group and BlackRock Inc, have far fewer employees.

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