Hedge Fund News: David Einhorn, Warren Buffett, Kyle Bass

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Private Equity Billionaire Is Now Selling a Hedge Fund for the Masses (Bloomberg)
David Bonderman amassed a $3 billion fortune in private equity for sophisticated investors. He’s now selling hedge fund strategies to the masses. Bonderman, whose TPG Capital has owned companies such as Continental Airlines and retailer J Crew Group Inc., is using a family office that manages a portion of his money — Wildcat Capital Management — to back a startup investment business. Infinity Q Capital Management is offering retail and other investors a version of the hedge fund programs it uses for the billionaire, said James Velissaris, chief investment officer for the new firm.

Wall Street Law Firms Challenge Hedge-Fund Deal Tactic (Wall Street Journal)
A group of large Wall Street law firms have banded together in an unusual bid to clamp down on a popular hedge-fund strategy aimed at squeezing more money from corporate takeovers. Seven firms—including Cravath, Swaine & Moore LLP, Davis Polk & Wardwell LLP, and Latham & Watkins LLP— are urging changes to rules governing an “appraisal,” a legal move in which stockholders who feel shortchanged by a takeover seek a higher valuation.

KKR-Backed Energy Hedge Fund Said to Triple Loss Amid Audit (Bloomberg)
BlackGold Capital Management, the energy-focused hedge fund partly owned by KKR & Co., told investors that losses amid the oil slump in December were almost triple its initial report after an auditor examined how it valued debt holdings, according to two people with knowledge of the matter. The $2 billion investment firm revised the loss to 17% last month from the 6% decline it previously reported, according to the people, who asked not to be identified as the information is private. The Houston-based fund cited difficulty in valuing some energy bonds at the height of the market’s turmoil, they said.

Why You Should Worry About Your Fund Manager’s Love Life (Wall Street Journal)
When managers of hedge funds get divorced or married, it’s bad news for their investors. Their asset returns are likely to suffer. Worse still, the pain could last years. That is the conclusion from a working research paper by academics at the University of Florida and Singapore Management University. It is a notion famously raised by hedge-fund investor Paul Tudor Jones in 2013, when he said that one can “automatically subtract 10 to 20 percent from any [hedge-fund] manager if he is going through divorce.” The study reprints his quote in the introduction. Representatives of Mr. Jones had no comment.


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