TPG-Axon Bets Big on a Handful of Investments (InstitutionalInvestorsAlpha)
Dinakar Singh‘s TPG-Axon Capital Management posted slight gains in its main hedge fund in the second quarter. But the New York-based hedge fund firm is hardly celebrating, given that its TPG-Axon Partners fund and its offshore counterpart are up a mere 0.75 percent and 0.13 percent, respectively, through the first half of the year. “We obviously did a poor job so far in 2014,” the firm laments to clients in its second-quarter letter, obtained by Alpha.
Hedge Fund Manager & Accomplice Charged With Portfolio Pumping (HedgeCo)
Minneapolis-based hedge fund manager Steven R. Markusen and an accomplice Jay C. Cope have been charged by the SEC with bilking investors in two hedge funds out of more than $1 million under the guise of research expenses and fees. According to the SEC’s complaint, Markusen and Cope also carried out a portfolio pumping scheme by manipulating the price of the thinly-traded stock of CyberOptics Corporation (NASDAQ:CYBE).
Tiger Management Descendants Favor Different Stocks than Their Hedge Fund Peers (InstitutionalInvestorsAlpha)
Managers who populate the elite crowd of 50 or so hedge funds with some sort of tie to Julian Robertson Jr.‘s legendary hedge fund firm, Tiger Management Corp., have always been thought to run in a pack. Lately, filings show that managers in this crowd have increasingly moved independently from one another. However, they still seem to favor a different universe of stocks than their non-Tiger competitors.
Handzy: Volatility could return with a vengeance on geopolitical risk (Risk)
A global macro hedge fund manager recently commented that the biggest risk today is stasis. “Volatility creates opportunity,” he told me, “and even if you’re an arbitrage trader, things need to move to create the gap. The slaughter of volatility has made holding hedges very costly. If it stays like this, what is the point of hedge funds?” …In late August, JPMorgan Chase & Co (NYSE:JPM)’s head of research Alexander Kantarovich wrote, “With the significant deterioration in the Ukrainian situation, markets may treat this as a Lehman-style shock.”
Hedge funds seek third-party Emir valuations (Risk)
It seems a classic case of ‘if you want something done right, do it yourself’. As the August 12 deadline for reporting derivative valuations under the European Market Infrastructure Regulation (Emir) loomed large, many small to medium-sized hedge funds opted to delegate this function to their derivatives counterparties, but some firms are now regretting that decision. …Investors are also raising concerns about the conflict of interest inherent in allowing trade counterparties – often banks – to do much of the valuation work.