Global hedge fund industry gained $75bn in 2012, hedge fund news, week 01 (Opalesque)
In the week-ending January 4, 2013, Gabelli & Partners launched the credit hedge fund Gabelli Intermediate Credit Fund on January 1; and former Citadel head of securities Patrik Edsparr received a license to start an asset management company in Hong Kong. The Nordic Hedge Fund index was up 0.26% in November (+3.46% YTD); the ‘Alternative Alternatives’ investment funds were up 0.42% in November (+2.75% in first 11 months of 2012); and the Credit Suisse Liquid Alternative Beta Index was up 1.13% in December (+3.22% YTD).
Doom scenario far-fetched but euro gloom to deepen (Reuters)
It would be fair to say that U.S. hedge-fund manager Kyle Bass does not expect the explosion in global debt in recent years to turn out well. “This ends through war,” Bass, the founder of Hayman Capital Management in Dallas, said. “I don’t know who’s going to fight who, but I’m fairly certain that in the next few years you will see wars erupt, and not just small ones,” he told a recent conference. But while many investors have, like Bass, bet heavily on chaotic sovereign default in countries such as Greece, three years of dogged diplomacy in Europe have so far wrong-footed the doomsayers.
Armstrong hedge fund eyes stocks rally, buys Apple (Reuters)
Hedge fund manager Patrick Armstrong is backing his confidence in the technology and luxury goods sectors by buying shares in Apple and holding his positions in the likes of LVMH and BMW. Armstrong, who co-manages $220 million as head of investment selection at Armstrong Investment Managers, believes that such companies will help to drive the S&P 500 and other stock markets to new highs in 2013, aided by central banks’ pro-growth policies and fast-growing emerging markets. “Some equity markets, including the S&P 500, will reach their all-time highs (in 2013),” the former co-head of Insight Investment’s $2 billion multi-asset group said in a statement.
New Kids on a Tough Block (WSJ)
Investors have shown little love for U.S.-stock mutual funds in the past few years. But that hasn’t stopped some companies from launching funds into this market for the first time. Overall, more money has been flowing out of these funds than into them for a record 20 consecutive months. Still, some U.S.-stock funds have net inflows, and there are companies that believe they can join that group.
What Looks Like a Hedge Fund but Isn’t? (WSJ)
Hedge funds have been a disappointment, says Ohio financial adviser Dan Gaugler, so he has been shifting clients to mutual funds that use hedge-fund-like strategies. Five to seven years ago, he was investing up to 10% of his wealthiest clients’ portfolios in hedge funds of funds, which promised stock-like returns with bond-like risk by spreading money among private, high-minimum funds that used a variety of strategies. “What they gave us was bond-like return,” partly because of their high costs, he says.
Dyal buys stake in MKP Capital (PIOnline)
MKP Capital Management sold a minority stake to Dyal Capital Partners, said Patrick McMahon, MKP’s founder, CEO and a managing member. MKP manages about $6 billion in global macro, credit and fixed-income hedge fund strategies. It will continue to operate under its own name from its New York office. Dyal Capital Partners is an institutionally oriented, $1.28 billion private equity fund managed by Neuberger Berman Group that takes 20% passive minority stakes in hedge fund managers.
New Year, New Face in Fund Administration (MarketWatch)
The New Year sees the launch of a new fund administration firm for alternative investment managers. Tower Fund Services is a newly established independent third-party administrator offering a compelling combination of fresh perspective and in-depth experience. The firm provides a full spectrum of tailored outsourced solutions for hedge funds, funds of funds, multi-manager platforms, private equity, venture capital and real estate funds. Its suite of services includes fund startup, accounting, valuation, reporting and tax services to alternative investment managers in all strategies and structures. Tower Fund Services was co-founded by the former managing director and director of operations for Apex Fund Services (US) Inc.
