There Are Now More Hedge Funds Than Ever (CNBC)
There are now more hedge funds than ever. Investors have the choice of an estimated 10,149 hedge funds and funds of hedge funds as of March 31, according to new data from industry research firm HFR. That surpasses the previous high of 10,096 set in 2007 before the financial crisis. About 1,040 new funds launched in 2014, a net addition of 176 compared with ones that closed. Total industry assets are $2.94 trillion, another all-time high, despite relatively muted single-digit returns from most hedge funds last year.
Hedge Funds Turn Most Bullish on Oil in 8 Months as Output Slows (Bloomberg)
Hedge funds increased bets on rising oil prices to an eight-month high amid signs U.S. production is slowing. Speculators boosted their net-long position in West Texas Intermediate crude by 9 percent in the seven days ended April 14 to the highest since August, U.S. Commodity Futures Trading Commission data show. Shorts, or bets on falling prices, tumbled to the lowest since February. WTI has rebounded by about 30 percent from a six-year low in March, boosting speculation that crude hit bottom.
Macquarie Said to Start Americas, Quant Hedge Funds This Year (Bloomberg)
Macquarie Group Ltd. plans to start a quantitative hedge fund this year that will invest in stocks listed in the U.S., Canada, Brazil, Chile and Mexico, said people with knowledge of the matter. The fund will trade stocks in the Russell 2000 Index, avoiding larger companies targeted by peers, said the people, who asked not to be identified as the information is private. It is expected to have the capacity to manage $1 billion of assets, including allocation from a global fund that Macquarie is starting, they added.
Former MF Global CEO Corzine Considers Launching Hedge Fund: WSJ.com (CNBC)
Jon Corzine, the former chief executive of bankrupt financial services firm MF Global, is considering starting his own hedge fund, The Wall Street Journal reported Sunday on its online edition, citing people familiar with the matter. The report said the fund would start with cash from Corzine’s personal funds and some outside investors. According to one source, Corzine said he had been speaking with about a half-dozen potential investors, and expected around $150 million in assets under management.
Hedge Funds Hawk Single-Bet Deals (The Wall Street Journal)
It is the gold-plated equivalent of a late-night infomercial: a special deal for hedge-fund investors willing to act fast. Hedge-fund managers are slashing their stiff fees for those willing to take a leap of faith on a single, concentrated investment idea as varied as Icelandic bank debt, American energy companies or U.S. government-backed loans. Known as co-investments, these deals differ from conventional hedge funds because fees are lower, money is locked up longer and even by the usual covert nature of the industry they are kept under wraps.
