Daniel Loeb’s Third Point Raised $2.5 Billion in Two Weeks (WSJ)
New York hedge-fund manager Daniel Loeb has raised a $2.5 billion war chest to spend on several new activist situations, potentially by the end of the year, according to people familiar with the matter. Mr. Loeb’s Third Point LLC raised the money over about two weeks this summer, the people said. The amount is one of the largest sums a hedge fund has amassed so quickly, according to fund experts. …The new funds will give Mr. Loeb additional buying power. As Third Point has grown in size, the size of its stakes has increased, too. Stakes in The Dow Chemical Company (NYSE:DOW) and Ally Financial Inc (NYSE:GMA) of more than $1 billion are among its largest positions.
PE Firm Electra Stands Firm Against Bramson Proxy Play (Law360)
Electra Private Equity PLC on Thursday again rebuffed calls for a board shakeup and strategic review from activist investor Edward Bramson and urged shareholders to vote down his proposals at an upcoming meeting. Information circulated among shareholders firmed up Electra’s stance after Bramson, through his Sherborne Investors Management LP hedge fund, last month launched a proxy fight to get himself and a lieutenant on the firm’s board. Sherborne has also leveraged its 19 percent Electra stake to pitch the comprehensive review.
John Paulson Opposes ‘Destructive’ AngloGold Share Sale (MoneyNews)
John Paulson, the billionaire whose hedge fund holds 6.6 percent of AngloGold Ashanti Limited (ADR) (NYSE:AU), said he opposes the miner’s plan to raise $2.1 billion from investors while spinning off non-South African assets because it will destroy shareholder value. “The concept is good but the execution, the way they’re doing it with this massive dilutive equity offering, it’s value- destructive,” Paulson, founder and majority owner of Paulson & Co., said. “I have absolutely no intention of voting this deal.”
Everyone Knows Hedge Funds Are a Ripoff (Gawker)
Hedge fund are organizations designed to take money from wealthy investors and—through sophisticated financial wizardry—use that money to enrich hedge fund managers. Shockingly, many professional investors believe hedge fund managers are overpaid. Bloomberg reports on the latest of what has become an ever-present low-level grumbling about the fact that the way hedge funds get paid is, you know, insane.
CogentHedge shuts down (Opalesque)
Originally developed and launched in 2001 as an in-house research facility for Cogent Alternative Strategies Inc., a third party marketer of hedge funds and other highly specialized alternative strategies for major institutional investors worldwide, CogentHedge became a trusted, highly accurate online resource for all qualified accredited investors. Our 10,000 registered users came to CogentHedge for analytical data and qualitative information unavailable elsewhere except to the very well-heeled institution that could afford the subscription and licensing fees of the professional consultants.
Oil’s lack of energy (CNBC)