Editor’s Note: Related tickers: Dell Inc. (NASDAQ:DELL)
David Tepper, who runs a $12 billion distressed-debt hedge fund, Appaloosa Management, emailed in some comments to CNBC’s “Squawk Box” this morning after global markets got crushed yesterday. “All of the concern in the markets is because the Fed sees the economy stronger in the future,” Tepper wrote adding that the Fed’s forecast shows that they will wait for a lower unemployment rate to raise interest rates. He added that he thought that the Fed should start to taper. “Bottom line: When the dust settles only one place to be —— STOCKS.”
Hedge fund managed accounts get serious attention (PIOnline)
Institutional investors are taking a hard look at hedge fund managed accounts as they further unwind hedge funds of funds into direct investments in single- and multistrategy hedge funds or move from separate accounts to gain more control of their investments. Large pension funds like the $259.8 billion California Public Employees’ Retirement System are considering a move to a managed account investment structure. Managed account providers and industry observers report a surge in interest from corporate and public pension funds and sovereign wealth funds around the world, although the U.S. currently is the hottest market.
An eye-opening look at the hedge fund industry (FierceFinance)
There are millions of stories on Wall Street. The best stories, frankly, are the ones that are only told privately. When it comes to the tales that are told for public consumption, you often get sanitized versions that serve a specific PR functions. You might get the truth, but only certain versions of it. All of which makes The Buyside, a memoir by former hedge fund trader Turney Duff, a valuable, intensely personal look into the hedge fund industry. On one level, the book delivers what one would expect given the subtitle: “A Wall Street trader’s tale of spectacular excess.” The author recounts not-unfamiliar tales of hard partying, shockingly conspicuous consumption, drug use, hooker addiction, juvenile behavior by grown adults and so on.
Facing up to hedge-fund ads (CrainsNewYork)
Anyone who rides the subway has seen ads for Jonathan Zizmor, the dermatologist who promises to transform pimply faces into marvels of clear complexion. Soon, Dr. Z may have a challenge of his own: fighting for ad space with hedge-fund managers. Thanks to federal legislation passed last year, hedge funds may soon be able to market themselves directly to the public, ending a decades-old ban. Mary Jo White, the new chairwoman of the Securities and Exchange Commission, has indicated she wants the new rules finalized soon. Once adopted, they would not only free hedge funds to seek investments from all and sundry, but would also make it easier for small companies to reach out and raise money from the man on the street—or riding the subway.
Hedge-fund tycoon splits from ‘spirited’ charity boss (TeleGraph)
Chris Hohn was so passionate about his glamorous wife, Jamie Cooper, that he decided to take her surname as a sign of his devotion. Sadly, Mandrake hears that the marriage of the hugely wealthy hedge fund manager has now lost its sparkle. “They are living separate lives and are expected to divorce,” claims one of their friends. “It’s very sad.” Chris Cooper-Hohn, 45, as he became after their wedding, is one of the world’s most generous philanthropists. The Children’s Investment Fund Foundation, which is run by his wife, gave away almost £1?billion in the five years to 2011. In one year alone, the couple donated a staggering £466?million to their charity.
Tiger Management – Best Seeding Platform (HedgeWeek)
Founded by hedge fund titan Julian Robertson in 1980, Tiger Management LLC became one of the most successful and lauded hedge funds. At its peak in 1998, Tiger Management was running USD22billion in assets. In 2000, Robertson decided to take a step back and return money to external investors. Tiger Management LLC took the form that continues to this day, primarily as an investor and seeder of other hedge funds. Gill Caffray re-joined Tiger Management LLC as chief investment officer in 2011. In addition to Caffray, Robertson’s son, Alex Robertson, became president and COO of Tiger Management LLC this January, succeeding John Townsend, who now serves as a senior adviser to Tiger.
Hedge fund CEO emerges as top Emanuel troubleshooter (ChicagoTribune)
When Chicago aldermen wanted answers on Mayor Rahm Emanuel’s new parking meter deal, they heard the details not only from a City Hall lawyer and administrator but from a rich and influential businessman who has no official city job at all. Michael Sacks, the leader of a Chicago hedge fund firm and a close friend of Mayor Rahm Emanuel’s, had been the closer on the deal, a primary example of how he has come to float between the worlds of business and government as he does Emanuel’s bidding.People tied to Sacks’ Grosvenor Capital Management firm donated nearly $450,000 to help get Emanuel elected, including $100,000 from Sacks personally. He has paid for sports tickets, meals and transportation for his friend since then, though neither man will detail the gifts.
Lender to provide $US5.2bil for Carl Icahn’s Dell bid (TheStar)
Jefferies & Co will provide US$5.2bil in term loans to back Carl Icahn’s bid for computer manufacturer Dell Inc. (NASDAQ:DELL), sources told Thomson Reuters LPC. The funding will be launched today at a 4:00 pm lender call that the billionaire investor is expected to join, the sources said. The US$5.2bil is split between a US$2.2bil six-year term loan B-1 and a US$3bil three-year term loan B-2. The six-year tranche will have standard 1% amortisation, while the shorter-dated tranche amortizes at 10 %, they said. Icahn declined to comment on details of the term loans on Friday.
Soros charitable foundation sometimes leans right (TucsonSentinel)
George Soros may be one of the nation’s top liberal political benefactors, but his company’s charitable program encourages employees to donate to any cause they would like — even if it potentially conflicts with his political ideology. Soros Fund Management, a hedge fund firm founded by Soros in 1969, will match any donation an employee makes to a nonprofit organization, a common practice among large companies.
MARC FABER: The Way Things Are Going, The Fed Will Have To Give Us 96 More Rounds Of Fed Stimulus (BusinessInsider)
On Wednesday, Federal Reserve Chairman Ben Bernanke told us that the U.S. economy could be strong enough for the Fed to begin tapering, or scaling back, it’s stimulative quantitative easing (QE) program later this year. However, the bears aren’t convinced. After Bernanke’s comments, Peter Schiff said the economy was so weak that the Fed’s next big announcement would actually be to increase QE. Uber bear Marc Faber, embracing hyperbole, suggested that QE would basically be a part of everyday life for the rest of our lives.
Gold Wagers Slump as $55 Billion Erased From Funds: Commodities (Bloomberg)
Hedge funds cut bets on a gold rally by the most since February after the Federal Reserve laid out plans for reducing stimulus and this year’s drop in the value of exchange-traded products extended to $55 billion. Speculators reduced their net-long position by 29 percent to 38,951 futures and options by June 18, U.S. Commodity Futures Trading Commission data show. Holdings of short contracts jumped 14 percent, the most in eight weeks. Net-bullish wagers across 18 commodities slid 2.2 percent as investors became more bearish on copper and wheat.
A Virtually Unknown Hedge Funder Who Crushed It During The Crisis Is Preparing To Make His Comeback (BusinessInsider)
Dr. Michael Burry is apparently plotting a comeback to the hedge fund world. Burry, the former hedge fund manager who accurately predicted the housing market crisis and is featured in Michael Lewis’ book “The Big Short,” is looking to raise money to start a new fund, the Wall Street Journal’s Juliet Chung reports. According to the Journal, he’s looking to raise between $100 and $200 million. The medical doctor-turned-hedge fund manager had incredible annualized returns during his eight years of running Bay Area-based Scion Capital Group.
This Is What’s Happening To Everyone Who ‘Bought Brazil’ (BusinessInsider)
ETFs have become Wall Street’s way of buying the world. You want exposure to India? Boom! Here’s a basket of Indonesian companies. How about homebuilders? Here’s a basket of companies in that industry down to the guys that make the mattresses in your bedroom. So naturally investors have bought into emerging market darling Brazil, but in the midst of this week’s chaotic protests, those investors have been taking a serious beating. Over the last 5 days, the iShares MSCI Brazil Capped Index (EWZ) is down 9.4% (22% year to date). You can see on the chart that things truly got ugly when the protests started a few days ago, but it’s also important to keep in mind that ETFs have gotten swept up in the bond selloff that’s taken hold of the market since Bernanke spoke this week.
US fund manager looks to score in Serie A (FT)
From Boston-based hedge fund manager to the sole foreign owner of a top-flight Italian football club, James Pallotta is determined to bring US-style branding and management to transform AS Roma into a profitable venture competing with the best in Europe. The challenge is daunting, not just because Italy’s Serie A is the least profitable of Europe’s top leagues. With the last goal of this season Roma lost 0-1 to local rivals Lazio in the finals of the Coppa Italiana, a bitter defeat that knocked them out of European competition for another season and left them scrambling to find a new coach, a position filled this month by the signing of Lille’s Rudi Garcia.
US court upholds Rajaratnam’s conviction (Business-Standard)
Disgraced hedge fund founder Raj Rajaratnam’s conviction for insider trading in the biggest hedge fund insider-trading scheme in US history was upheld today by a court here, which rejected a challenge to the use of wiretaps in his high-profile trial. The US Court of Appeals in Manhattan today confirmed the 2011 conviction of the co-founder of Galleon Group LLC for conspiracy and securities fraud. The decision by a unanimous three-judge panel of the 2nd US Circuit Court of Appeals in New York was seen as a victory for federal prosecutors, who have used wiretaps to win convictions or guilty pleas for dozens of defendants in a wide-ranging investigation into insider trading that was unveiled in October 2009.
