June proves positive for hedge funds as gross invested levels increase (HedgeWeek)
The four main hedge fund strategies also posted gains, as measured by the respective HFRX strategy indices in US dollar terms. Hedge funds increased their investment levels in June as markets normalised following the equity market rotations in March through to early May, according to GAM portfolio manager Anthony Lawler. “Hedge funds are generally bullish on the opportunity set and that is reflected in their gross exposure increases, while net market exposure remains stable,” says Lawler. “Equities and credit are hitting all-time highs in price terms in some regions, and many managers view this as an opportune time to express long and short ideas rather than simply being directionally long.
Hedge fund manager Steve Eisman shuts down Emrys Partners (Reuters)
Hedge fund manager Steve Eisman, whose bet against the overheated housing market earned him a starring role in a best-selling book, has closed down his fund, a person familiar with the fund said. Eisman founded Emrys Partners two years ago, becoming the latest prominent manager to go off on his own. He closed the fund over the course of the last few weeks, this person said. Previously Eisman worked at FrontPoint Partners, which was forced to shut down after one of its portfolio managers was involved in insider trading. Joseph “Chip” Skowron, who had run a healthcare portfolio at FrontPoint, plead guilty to insider trading and is now in serving a prison term.
Russian investment managers establish dialogue with CAIA Association (HedgeWeek)
The event was organised by Blackfield Capital and Europe Finance to introduce CAIA Association, a provider of alternative investment education, to the Russian investment community. Attendees included top local investment managers, private equity, hedge funds and venture capital firms. Keynote speaker, Keith Black, managing director of curriculum at CAIA, shared insights on latest trends in alternative investments globally.
Petroceltic downsizes board to satisfy major shareholder (Reuters)
Irish oil and gas explorer Petroceltic has reduced its board by two members to seven and appointed two new non-executive directors nominated by major shareholder Worldview Capital Management, the company said on Friday. The changes meet Worldview’s demands to reshuffle the board after the company, which owns 20 percent of Petroceltic, had blocked a $100 million share placement. …The Switzerland-based hedge fund chose two former RusPetro directors to join the board, ex-chief executive Don Wolcott and former non-executive director Joe Mach.
Asset managers who want to set up their own reinsurance company need an education (Opalesque)
Hedge funds are increasingly investing in the reinsurance business as a means for innovation and diversification. Before, they usually invested in reinsurers through sidecars or buying equity. But more recently, managers have been launching reinsurance businesses themselves, wrote Ernst &Young in a paper last year. Over the last two or three years, start-up reinsurers such as Dan Loeb’s Third Point Reinsurance Ltd., Steven Cohen’s S.A.C. Re Holdings, Ltd., David Einhorn’s Greenlight Capital Re Ltd., John Paulson’s PaCRe Ltd., and Cliff Asness’ AQR Re were all formed with an underlying hedge fund sponsor playing a pivotal role in the formation.