Proxy Firm Backs One Elliott Nominee in Alliance Trust Battle (Bloomberg)
A proxy voting company is backing one of three directors that Paul Singer’s Elliott Advisors wants installed on Alliance Trust Plc’s board, the third investor group this week to weigh in on the hedge fund’s battle to shake up the 127-year-old British money manager. Glass, Lewis & Co. advised shareholders to vote in favor of Peter Chambers, the former chief executive officer of Legal & General Investment Management, according to a report sent to clients. The San Francisco-based firm advised investors vote against Elliott’s other nominees — Anthony Brooke and Rory Macnamara — citing “governance issues.”
Sehr Gut! Investor’s Germany, Japan Bets Pay Off (CNBC)
Eton Park Capital Management‘s international bets are paying off. Investments in European and Asian stocks—including Porsche and options on Japanese equities—helped power Eton’s main hedge fund to a 7.1 percent net-of-fees gain over the first quarter, according to a private letter to investors. Eton Park, which invests around the world using all types of securities as a “multistrategy” hedge fund, runs about $9 billion. The New York-based firm is led by former Goldman Sachs partner Eric Mindich.
Hedge Fund Pressure Unlikely to Block Qualcomm Bond (Reuters)
Hedge fund pressure to break up Qualcomm is not likely to be an obstacle when the world’s largest phone chip-maker comes to market as expected with a jumbo bond to finance a share buyback. Activist hedge fund Jana Partners, which holds 4.4 million shares in Qualcomm, wants it to split its chip-making business from its technology-licensing operation, among other changes. But with A1/A+ ratings, no debt outstanding and some US$32bn of cash on hand, Qualcomm is highly unlikely to take heed – and investors are expected to shrug off Jana’s complaints as well.
After $1 Billion Loss, Senior Citadel Manager Derek Kaufman Steps Down (The New York Times)
A senior manager at the hedge fund Citadel Investment Group has left after losing $1 billion of investors’ money last year. Derek Kaufman, the head of global fixed income and a member of Citadel’s portfolio committee, resigned two weeks ago, according to Katie Spring, a spokeswoman for the firm. His trades are being wound down and liquidated, she added. Mr. Kaufman ran a portfolio for investors that placed bets on currencies, interest rates and sovereign bonds around the world. Those trades included complex and nuanced wagers on the direction of interest rates.