Soros considers investing in European banks (HedgeWorld)
George Soros wants to invest in Europe’s financial sector, according to a German magazine’s interview with the billionaire investor on Sunday [Feb. 23]. “I believe in the euro,” weekly Der Spiegel quoted him as saying. “Therefore my investment team is looking forward to make a lot of money soon in Europe by, for example, pumping money in banks which urgently need capital,” he added, noting the euro zone needs this kind of private investment right now. Soros, who founded Soros Fund Management, is one of the hedge fund industry’s most closely watched investors.
Sprott Bets on Mexico as Hedge Fund Boosts Bonds: Canada Credit (Bloomberg)
Sprott Asset Management LP is betting Canada’s bond market will be on the losing side of a deepening North American rivalry with Mexico for the fruits of a recovering U.S. economy. Michael Craig, fixed income portfolio manager at Canadian hedge fund Sprott Inc., said he’s buying Mexican government debt because demand for Mexican oil is growing at Canada’s expense. The move comes as the firm, which made its fortune investing in gold and mining stocks, boosts its fixed-income allocation in balanced funds to 30 percent from 25 percent, according to co-chief investment officer John Wilson.
SAC Vet Vine To Launch Hedge Fund Backed By Dymon (Finalternatives)
A refugee from SAC Capital Advisors’ London office plans to launch a Asia-focused equity long/short hedge fund with Dymon Asia Capital. Carl Vine has set up Port Meadow in Oxford, U.K. The firm will launch its maiden fund in the second quarter, with US$150 million in initial assets, from both Dymon and Port Meadow’s partners. The latter include Li Shen, David Perrett and David Tuthill, who worked with Vine at SAC and at UBS AG (ADR) (NYSE:UBS). Port Meadow and Dymon hope to raise as much as US$500 million for the new fund in its first year.
Blue Harbour Pushes For Asset Sales At Hedge Fund-Owned Tribune (Finalternatives)
Activist hedge fund Blue Harbour Group has a “friendly” request for its fellow hedge funds that control the Tribune Co.: Sell off its real-estate holdings and share of the electromagnetic spectrum, please. Blue Harbour founder Clifton Robbins announced a 2.5% stake at the annual meeting of fund of hedge funds EnTrust Capital earlier this month, The Wall Street Journal reports. And he said he has urged the company’s leadership, including chairman Bruce Karsh, head of Oaktree Capital Management, to consider selling off additional assets to boost shareholder value.
Money Managers Pile into Hedge Funds (MainStreet)
Institutional money managers love hedge funds, for better or worse. Mostly worse. Hedge funds trailed the performance of the S&P 500 for the fifth year in a row in 2013 and are still below their all-time highs attained back in 2007, according to Bloomberg. But in spite of the lagging performance and high fees of alternative investments, professional money runners continue to pile in. Hedge funds are expected to reach a record breaking $3 trillion in assets by the end of 2014, up from $2.6 trillion as of year-end 2013, according to a Deutsche Bank AG (USA) (NYSE:DB) investor survey. Money managers say they will pour in $171 billion to hedge funds this year.
Starboard Wants To Put Red Lobster Spinoff Plan To Vote (FoxBusiness)
Darden Restaurants, Inc. (NYSE:DRI)‘s plan to spin off its Red Lobster chain should be put to a shareholder vote, activist hedge fund Starboard Value LP said. Darden said in December it would spin off or sell the floundering Red Lobster chain, bowing to pressure from hedge fund Barington Capital Group. Starboard Value, which owns a 5.5 percent stake in Darden, has been urging the largest U.S. full-service restaurant operator to delay plans to spin off Red Lobster.