Editor’s Note: Related Ticker: Citigroup Inc. (NYSE:C), Morgan Stanley (NYSE:MS), Credit Suisse Group AG (ADR) (NYSE:CS), JPMorgan Chase & Co. (NYSE:JPM), Herbalife Ltd. (NYSE:HLF), Berkshire Hathaway Inc. (NYSE:BRK.B), Apple Inc. (NASDAQ:AAPL)
Loeb’s Third Point eyes 2013 IPO for reinsurance arm: sources (Reuters)
Third Point, the $11.6 billion hedge fund run by billionaire Dan Loeb, has hired banks for an initial public offering of its reinsurer business, according to three sources familiar with the matter. Bermuda-based Third Point Re is working with Morgan Stanley (NYSE:MS), Credit Suisse Group AG (ADR) (NYSE:CS) and JPMorgan Chase & Co. (NYSE:JPM) on a public float that could raise around $250 million later this year, the sources said. Reinsurers act essentially as insurance for insurance companies. Third Point launched its reinsurer arm last year with $750 million in capital. The company is led by prominent industry executive John Berger, who was the former CEO of Alterra Capital Holdings Ltd (NASDAQ:ALTE)’s reinsurance business.
ResCap’s Marano May Look to Form Hedge Fund or Mortgage REIT (Wall Street Journal)
Thomas Marano, the outgoing head of Ally Financial Inc.’s subprime lender, Residential Capital, is pursuing other opportunities in the mortgage business that could include starting a hedge fund or real-estate investment trust. Mr. Marano, the former Bear Stearns executive who has led ResCap since 2008, said he is also talking to private-equity firms about starting a mortgage-related business. ResCap said Mr. Marano has agreed to stay on as an outside director to help facilitate a smooth transition for the bankruptcy estate, while he pursues other interests. Tammy Hamzehpour, the company’s former general counsel, will function as ResCap’s chief business officer.
Man Announces FUM of $54.8 Billion for 1st Quarter (HedgeCo.net)
Hedge fund giant Man Group says that their funds under management (FUM) at 31 March 2013 are at $54.8 billion ( compared with $57.0 31 December 2012). “The world economy still faces significant challenges but with reduced correlation between major asset classes and the reassertion of trends, we have seen a somewhat more stable market environment. Against this background, we saw solid performance across our three investment engines.” Manny Roman, Chief Executive Officer of Man, said. “However, this was a disappointing quarter from a flows perspective with sales at a similar level to the previous quarter and increased redemptions.”
Apple Inc. (AAPL) And The Rest Of Billionaire Julian Robertson’s Long Term Picks (Insider Monkey)
Julian Robertson has become a legendary investor both because of his success as a hedge fund manager at Tiger Management- which made him a billionaire- and his ability to groom “Tiger Cubs” who have gone on to become successful managers themselves. Robertson has owned Apple Inc. (NASDAQ:AAPL) for the last couple of years, though he has been adjusting his position considerably over time and cut his stake by 58% in Q4. Apple Inc. lost its place as the most popular stock among hedge funds in the last three months of 2012, with American International Group Inc (NYSE:AIG) being the new #1. Falling gross margins have caused Apple Inc. (NASDAQ:AAPL)’s earnings to decline despite higher revenues.
As Fund Administrator, Citi Answers the Data Question with OpenAi (waterstechnology)
Citigroup Inc. (NYSE:C) recently launched OpenAi, which provides complete data aggregation and transparency for its alternative investment clients. Since 2008, buy-side firms’ appetite for clean data delivered quickly has been insatiable. As a result, the demands that have been put on fund administrators have increased exponentially.
Perry Fatuova, director of hedge fund services at Citigroup Inc. (NYSE:C), says the industry has moved from a “monthly admin-type business to a daily, real-time business” where fund administrators need to capture and confirm trades throughout the day. This is partly due to volatility in the market; it also has to do with regulatory concerns. Taming that data beast internally is expensive, so hedge funds are turning to their admins for help.
Image: Citigroup Inc. (NYSE:C)
Herbalife Makes Cameo During Berkshire Hathaway Weekend (Wall Street Journal)
New York Times journalist Andrew Ross Sorkin, tasked with filtering shareholder questions, on Saturday asked Warren Buffett about activist investor Bill Ackman’s negative wager on Herbalife Ltd. (NYSE:HLF) in light of Berkshire Hathaway Inc. (NYSE:BRK.B)’s ownership of Pampered Chef, another multilevel marketing company that sells kitchen tools ranging from bakeware to cutlery. While Buffett said he has never looked at an Herbalife annual report and does not know about its operation, he went on to describe why he feels Pampered Chef is a legitimate company. “Pampered Chef’s business is based on selling to the end user, and we have thousands and thousands and thousands of parties every week where people who are actually going to…