Steve Cohen’s SAC Capital Says Cougar Decisions Based on Public Information (Bloomberg)
SAC Capital Advisors LP, the $14 billion hedge fund run by Steven A. Cohen that’s being investigated by regulators for insider trading, said it’s investment in Cougar Biotechnology Inc. before the company was bought by Johnson & Johnson (JNJ) in 2009 was “perfectly reasonable” and based on publicly available information.
Hedge Fund Redemptions Down in October (Reuters)
Investors are largely looking beyond hedge funds’ recent poor performance and sticking with their investments, as volatile markets leave few safe havens for clients to put their cash, data showed on Thursday. The GlobeOp Forward Redemption Indicator — a monthly snapshot of clients giving notice they want their money back as a percentage of GlobeOp’s assets under administration — dropped to 2.51 percent in October from 3.11 percent in September.
Texas County & District Invested More Than $400M in Hedge Funds This Month (PiOnline)
Texas County & District Retirement System, Austin, committed $400 million in new or follow-on investments in 14 hedge funds this month, according to a transaction report on the $18.4 billion fund’s website. The system made commitments to four new hedge funds, giving $18 million each to Brigade Leveraged Capital Structures Fund and Taconic Opportunity Fund; $50 million to Archipelago Partners; and $25 million to Canyon Value Realization Fund.
BlackRock Launches Hedge Fund-like Mutual Funds (FierceFinance)
It’s no secret that more companies have moved aggressively to be able to offer more hedge fund-like styles and investment techniques in the form of a mutual fund.
The great hope of course is that retail investors will hungrily eat up the chances to run with the wolves of Wall Street. The market has grown crowded. Almost half of the 247 hedge alternative mutual funds–or “hedge fund mutual funds”–on the market today have been launched in the last three years, according to Morningstar.
Big 5 Asset’s Bo K. Brownstein Expected to Plead Guilty to Insider Trading Today (NYTimes)
A hedge fund manager from a prominent Denver family is expected to plead guilty on Friday to insider trading charges. Bo K. Brownstein
, the head of Big 5 Asset Management and a former banker at Credit Suisse in New York, is expected to appear in Federal District Court in Manhattan and admit to making illegal profits by trading on a confidential stock tip about a corporate merger
, according to two people briefed on the case who requested anonymity because they were not authorized to discuss it.
PIMCO Opens Distressed Credit Fund (HedgeFund) Pacific Investment Management Co.
continues to grow its fund business by launching a new distressed credit hedge fund. The fund opened on Oct. 7 with $689.5 million and will remain open for at least a year, according to a Securities and Exchange Commission filing on Thursday. The fund so far has 38 investors and will be overseen by the firm’s top executives including PIMCO founder Bill Gross
and its CEO, Mohamed El-Erian
SEB Launches New Hedge Fund Seeding Vehicle (HFMWeek)
Scandinavian banking group SEB has launched its second dedicated hedge fund seeding vehicle, closing the fund to new investment at the beginning of the month with $300m in assets, HFMWeek can exclusively reveal. Manager Catalyst Fund (MCF) II was rolled out on 1 October having reached its total with investment from several Nordic pension funds and other institutions. The fund follows the same hybrid private equity and funds of funds model as SEB’s first MCF and, as with its debutant, will also seek to allocate to six emerging managers.
A European Union rule banning naked CDS trading is misguided and “another instance of the authorities blaming the wrong people and imposing the wrong policies”, says Cass Business School’s Ian Marsh. A range of regulatory experts say the controversial ban on naked credit default swap (CDS) trading in the European Union (EU), agreed by European members of parliament and the Polish presidency at a meeting on October 18, as ineffective, unjustified and politically motivated.
Hedge Fund Managers Raise Money for Charity Boxing (Reuters)
It was the kind of opportunity loss-stricken investors probably longed for during the worst months of the financial crisis: putting a group of hedge fund managers in a boxing ring and pummeling them. But the mood at the recent fifth annual hedge fund “Fight Night” in Hong Kong was exuberant, with managers and executives slugging it out to raise money for charity.
Perry Capital Closes Doors in HK to Concentrate n Western Markets (Reuters)
New York-based hedge fund Perry Capital
, which manages about $8 billion (5 billion pounds), is shutting down its Hong Kong office and will cut 30 jobs globally, a source with direct knowledge of the matter told Reuters on Friday. The firm, founded by Goldman Sachs (GS.N)
alumnus and star hedge fund manager Richard Cayne Perry more than two decades back, was cutting exposure to Asia as it wanted to concentrate on the U.S. and European markets, the source said.
Fortune Investment Group to Launch Second Asia Hedge Fund in 2012 (Reuters)
Fortress Investment Group LLC plans to launch its second hedge fund in Asia next year that would trade volatility and aim to protect investors from tail risk, or rare and extreme events in financial markets. “We’re starting a vol-based (volatility-based) convexity fund sometime next year,” Adam Levinson, chief investment officer of the Fortress Asia Macro Funds, told reporters in Singapore.