Hedge Fund News: Larry Robbins, Alan Howard & Ken Griffin’s Bold Statement

Larry Robbins’ Obamacare Bet Makes Him Hedge Fund Manager Of The Year (Forbes)
Two major and controversial stories have dominated America in the last two years. One of them is Obamacare, President Barack Obama’s signature legislative achievement that is currently facing mounting problems and criticism as it gets implemented. Another important development in America has been the roaring comeback of the U.S. stock market, which has soared to new all-time highs. One man has harnessed these two trends to make a fortune like no one else. Larry Robbins, who runs hedge fund firm Glenview Capital Management, made a huge bet on Obamacare and the U.S. stock market that is paying off in a big way.

GLENVIEW CAPITAL

Hedge Fund Industry on the Road to Recovery (DigitalJournal)
Extreme market volatility, adverse global macroeconomic conditions, underperforming markets and low consumer confidence all colluded to create an extremely hostile environment for hedge funds last year. But in many ways, 2012 was rock bottom, and the hedge fund industry inevitably became stronger in the face of that challenge. That is why 2013, despite a growing regulatory burden, is shaping up to be a better year, paving the way for sustained growth in the near future. The World Finance Hedge Fund Awards represent the best players in the industry and offer an insight into the many success stories amid an ever-volatile marketplace.

Hedge funds added to this year’s gains in October (Reuters)
Hedge funds added to their performance gains in October as stock markets continued to rally, boosted by the United States avoiding a default on its debt and further signs the world’s largest economies are growing, new data showed on Tuesday. According to the SS&C GlobeOp Hedge Fund Performance Index, the average fund returned 1.06 percent last month, bringing year-to-date gains to 9.93 percent. The index rose 0.1 percent in October 2012 and was up 7.78 percent in the 10 months to end October last year. Hedge funds are enjoying a strong 2013, with most of the main strategies making their clients money and leaving managers to collect the lucrative performance fees they charge…

Hedgies have built a sector on an aura of exclusivity (FT)
You are a discerning member of the elite. So please read on. We have to be selective, obviously. Just as Goldman Sachs Group, Inc. (NYSE:GS) will doubtless be in inviting investors to participate in Petershill II, a private equity fund that will buy stakes in hedge fund partnerships. One can’t give any old Tom, Dick or Harriet access to such an exclusive investment. Or the go-ahead to peruse this incredibly classy column. An aura of privileged access has been a key marketing tool for hedge funds, privately owned asset management businesses that took off in earnest in the UK over a decade ago.

SEC Makes Deferred Prosecution Agreement With Hedge Fund Administrator (HedgeCo)
For the first time in SEC history the agency has deferred prosecution against a former hedge fund administrator who helped the SEC take action against a hedge fund manager who stole investor assets. The SEC agreed to a deferred prosecution agreement (DPA)* with Scott Herckis when he helped them secure an emergency enforcement action against Berton M. Hochfeld, the founder of Connecticut-based hedge fund Heppelwhite Fund LP. Hochfeld is accused of misappropriating more than $1.5 million from the hedge fund and overstating its performance to investors.

Ex-GoldenTree’s Wagner Joins Trilogy as President of Merged Firm (BusinessWeek)
Leon Wagner, the retired chairman of GoldenTree Asset Management LP, joined Greenwich, Connecticut-based credit hedge-fund firm Trilogy Capital LLC, according to a letter to investors. Wagner’s credit-focused investment firm LWPartners LP will merge with Trilogy and become a partner in the hedge-fund manager, according to the Nov. 8 letter, a copy of which was obtained by Bloomberg News. Wagner will be president of the combined firm, which is being renamed TrilogyLWP LLC.

Asian currencies out of favor again? (CNBC)

Simon Riveles a Panelist at the Hedge Fund Association’s Student Symposium at Seton Hall (Virtual-Strategy)
The Hedge Fund Association (“HFA”), an international non-for-profit organization made up of hedge funds, funds of hedge funds, family offices, high net worth individuals, and service providers, is sponsoring the HFA Inaugural Student Symposium at Seton Hall on Wednesday, November 20th entitled, How to Find Your Fortune Without Losing Your Soul. The Symposium, which will run from 7:30pm-9:30pm, will be a unique opportunity for those interested in learning more about the hedge fund industry and the wide array of exciting job opportunities the industry offers in research and analysis, portfolio management, marketing, administration, compliance, and law.

SAC London Staff in Job Talks With Rivals (WSJ)
SAC Capital Advisors LP portfolio managers and analysts here have held discussions with rival hedge funds, including Moore Capital Management LP, about moving to those firms as SAC prepares to close its London office, according to people familiar with the matter. SAC’s move last month to shut the office by year-end, as the U.S. hedge-fund firm retrenches following a record insider-trading settlement, has spurred a flurry of discussions between SAC traders, analysts and portfolio managers and their rivals at other firms, say people close to the firms involved. Besides Moore, SAC employees have had talks about potential jobs at Millennium Management, BlueCrest Capital Management and Balyasny Asset Management, according to people close to discussions with those firms.

Alan Howard’s Tops Europe’s Hedge Fund Rankings : Donates $32 Million To Imperial College London (JewishBusinessNews)
Alan Howard’s hedge fund Brevan Howard, which he founded in 2002 with four partners who came with him from Credit Suisse Group AG (NYSE:CS), has moved to the top of this year’s European hedge fund league tables. Published by Hedge Fund Journal last week, the new ranking puts his fund at top of the list with assets under management of US$40 billion as at the end of September, up by 9%. He displaced the Man Group with US$35.6 billion under management. A year earlier, in 2012 Brevan Howard came second in the listings. Brevan Howard is a global alternative asset manager, managing significant institutional assets across a number of diversified strategies. His partnership also sold a 15% interest in the firm to reinsurer Swiss Re in 2007.

Two Great Tweets From Nouriel Roubini Explain The Biggest Economic Problem Right Now (BusinessInsider)
These are two great tweets from Nouriel Roubini. He tweeted these stories from last, and they get to the core economic challenge of the moment. On the one hand, there’s widespread concern that financial markets are booming and bubbles are forming, especially in real estate, and that all this is a threat to financial stability. On the other hand, there’s worry about super-low inflation, and the ongoing risk of outright deflation if policymakers don’t keep pressing down on the stimulus.

Hedge Funder Ken Griffin: ‘If I Could Wave A Magic Wand, I Would Break Up The Banks’ (BusinessInsider)
Hedge fund billionaire Ken Griffin, the founder of Citadel, Sorkin began the conversation with the topic of banking. “If I could wave a magic wand, I’d break up the banking system,” Griffin said. Griffin said that he would break up the big banks because they are both too big to fail and too big to manage. He also said that he would pull the securities business out of the banking system. Sorkin asked him if he supported the Occupy Wall Street Movement. “No, I do not,” Griffin replied.

Meet the Manager Who’s Net Short — and Up 14 Percent (InstitutionalInvestorsAlpha)
It’s not too surprising that many long-short equity managers are lagging the wild bull market for stocks. After all, many of them are hedged with short positions that have risen in price, and many managers are far from fully exposed to the equity markets. However, one long-short manager seems to stand out: Russell Clark, who runs the London-based Horseman Global Fund. Clark’s fund has gained 14.77 percent through October. Sure, that’s well below the 23 percent gain for the S&P 500, which tracks U.S. stocks, over the same period…

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