Editor’s Note: Related tickers: Facebook Inc (NASDAQ:FB), Dell Inc. (NASDAQ:DELL), MGIC Investment Corp. (NYSE:MTG), Radian Group Inc (NYSE:RDN), eBay Inc (NASDAQ:EBAY), Time Warner Inc. (NYSE:TWX), DIRECTV (NASDAQ:DTV)
Hedge funds led by Paulson & Co. and Maverick Capital are piling into mortgage insurers in a bet that some of the companies worst hit by the U.S. housing crash will be among the biggest winners in the rebound. Maverick, run by Lee Ainslie, added 23.6 million shares of MGIC Investment Corp. (NYSE:MTG) in the first quarter as the stock almost doubled, according to regulatory filings. Billionaire John Paulson’s $18 billion hedge-fund firm acquired 17 million shares of MGIC Investment Corp. (NYSE:MTG) and 8 million of rival Radian Group Inc (NYSE:RDN)
Facebook Struggles to Satisfy Investors About Mobile Earnings (BusinessWeek)
Facebook Inc (NASDAQ:FB) marked its first anniversary as a public company on May 17, and investors had little reason for merriment. Through May 14 shares were down 29 percent from the initial public offering price of $38, making Facebook Inc (NASDAQ:FB) the fifth-worst performer of the 124 stocks that debuted during the same period, according to data compiled by Bloomberg. Among companies that raised $200 million or more in an IPO, the social network ranks last. It could be worse: The stock has climbed more than 50 percent from its September low and has a market value of $65 billion—behind eBay Inc (NASDAQ:EBAY) at $73 billion and ahead of Time Warner Inc. (NYSE:TWX) ($57 billion) and DIRECTV (NASDAQ:DTV) ($36 billion). Yet a year after the company raised $16 billion in the largest technology IPO on record, investors remain concerned about its ability to generate earnings as a growing number of users shift from personal computers to smartphones and tablets…
Dell Committee Renews Call for Details on Icahn Takeover Bid (BusinessWeek)
Dell Inc. (NASDAQ:DELL)‘s special committee reiterated its call for billionaire Carl Icahn to provide more details regarding his proposal to take over the personal-computer maker. In a letter today, the committee said it can’t respond to Icahn and won’t engage in talks unless the board decides that his bid could result in a “superior proposal” over founder Michael Dell’s $24.4 billion offer. …On May 13, Dell Inc. (NASDAQ:DELL)’s special committee asked Icahn and his partner Southeastern Asset Management Inc. for more information about his takeover plan, which involves borrowing money for Dell Inc. (NASDAQ:DELL) to offer $12 a share in cash or stock to investors, while also letting them retain stakes in a public company. The payout would dilute existing Dell Inc. (NASDAQ:DELL) shares, which Icahn has said would have a value of at least $1.65 apiece.
London remains Europe’s hedge fund capital as UCITS funds increase (HedgeWeek)
TheCityUK’s Hedge Funds 2013 report also shows that London retains its position as Europe’s hedge fund capital, and is second only to New York for global hedge fund management with 18 per cent of the global share. According to TheCityUK, hedge fund activity levels in London and Europe have held firm following the rise in UCITS compliant hedge funds, which will not be subject to the incoming Alternative Investment Fund Managers Directive (AIFMD).
Peak6 $1bn capital raise boosted by Aussie instos (FinancialStandard)
US hedge fund manager Peak6 has soft-closed its new Achievement fund after attracting significant inflows from Australian investors. The fund, which launched in September 2012, has already reached the $1 billion in funds under management (FUM) milestone after receiving significant support from Australian superannuation funds and one unnamed family office. Peak6 estimates that Australian client money accounts for around 7% of the fund’s total FUM. The strategy, which is headed-up by hedge fund veteran Joe Scoby, will now pause for breath, closing its doors to new investors.
Hedge fund managers face the hazards of poker (FierceFinance)
Image counts a lot in the hedge fund industry. So if you are a hedge fund manager and you let it be known that you also play poker, you had better play pretty well. Poker is taken quite seriously in the industry. Success in poker is something that you would definitely want on your resume. Hedge fund managers like David Einhorn have adroitly used their poker playing prowess to burnish their personal brands. He finished third at the World Series of Poker last year, and was likely pleased with the media coverage, which noted that he planned to give his $4.4 million in winnings to charity.
The performance of macro hedge funds has been surprisingly poor, given the influence of macroeconomic and political events on all asset classes since the financial crisis. In 2013, could global macro strategies return to form? …The old-school managers, epitomised by the likes of George Soros, the billionaire investor, made big, fundamentally driven bets and were prepared to withstand large profit and loss (P&L) swings. However, since the financial crisis, they have faded from the scene. New-school managers, who have a greater focus on risk management and manage P&L drawdowns aggressively, have replaced them. (Mr Dow also noted the growth in tourist macro – managers who made big money in one sector and then switched into another, making large old-school-style bets.)
Hedge fund tycoon fails to win £2billion trading codes from his wife in High Court battle after their marriage ‘turned toxic’ (DailyMail)
Two tycoons whose marriage ‘turned toxic’ have been accused by a judge of giving ‘tainted’ evidence in a bitter dispute over their hedge fund company. The legal fight between Martin Coward, 55, and 54-year-old Elena Ambrosiadou centred over computer software which made their fund IKOS into a £2.1 billion business. Miss Ambrosiadou , 54, said the trading algorithms belonged to the company and not Dr Coward who she claimed gave up his rights when he walked out on the business as their marriage fell apart. Dr Coward said he created the software.
Hedge funds shift to bearish bets on treasury 10-year notes (Business-Standard)
Hedge-fund managers and other large speculators held a net-short position in 10-year note futures for the first time in almost two months amid speculation Federal Reserve officials may taper the pace of asset purchases. They moved to the bearish wagers in the week ending May 14 for the first time since March 22, according to US Commodity Futures Trading Commission data. Specu-lative short positions, or bets prices will fall, outnumbered long positions by 11,153 contracts on the Chicago Board of Trade.
Not all doom and gloom, says Marc Faber (AFR)
When Marc Faber takes a break from markets he does two things; drinks beer and goes to nightclubs. “I’m very much involved in lifting beer glasses and watching girls in nightclubs,” the economist, well known gold bug, investor and author of The Gloom Boom and Doom Report, tells The Australian Financial Review. “I drink Chang beer here in Thailand. It has an elephant on the can, and it belongs to essentially one of the richest Thais. He bought Fraser & Neave in Singapore which is Tiger beer. I think he makes very good beer.”
Japanese Pensions Moving Into Alternatives Overseas (WSJ)
Since the Bank of Japan 8301.JA +3.24% unleashed a massive new easing program last month, European and U.S. investors have waited with bated breath for more BOJ bond buys to push Japanese lifers overseas. The truth: Japanese pension funds are already ahead of them. They’ve been putting more of the world’s second-largest pool of retirement funds into everything from global real estate to Namibian debt.
Meet One Of The Youngest And Brightest Hedge Fund Analysts That Isn’t On Wall Street (Forbes)
22-year-old Alex Bosset is not your typical college student. A finance major at the University of Minnesota, he was recently ranked among the top 14 buyside analysts in a list compiled by SumZero, a social network for professional investors (co-founded by Divya Narendra and funded by the Winklevoss twins). The basis of the ranking consisted of SumZero members submitting investment ideas, which were then evaluated according to average return and peer evaluation over an 18-month period. In order to make the top 14, an analyst would need to have a portfolio of ideas with a high rate of return, while simultaneously earning a respectable average peer rating.
