Funds rush to dodge new European rules (Financial Times)
A controversial hedge fund-lite structure looks likely to survive, despite a regulatory clampdown that has claimed its first victim. Cantab Capital Partners, a $5.5bn systematic global macro manager, last week announced the imminent closure of its only onshore Ucits fund as a result of pressure from European regulators. However, fund promoters are restructuring a swath of similar funds, advised by groups such as Winton Capital, Man Group and Aspect Capital, to get around new rules imposed by the European Securities and Markets Authority.
Asia’s Best Analyst: India (Wall Street Journal)
As India’s benchmark Sensex index returned 26% in 2012, Amit Anwani, an analyst at a little-known brokerage firm, doubled investors’ money with a bet on midcap real-estate stocks. Mr. Anwani, who works at Mumbai-based Kantilal Chhaganlal Securities Pvt., said his best calls were on regional real-estate companies Sobha Developers Ltd. – which rose 92% under his buy call last year – and Housing Development & Infrastructure Ltd., which he rated a buy throughout the year as it more than doubled. Mr. Anwani covers midcap companies, with a focus on capital goods, real estate and construction.
Reuters: Detroit’s municipal debt attracting hedge fund ‘vultures’ (MLive.com)
Hedge funds have found success in the last two decades in corporate bankruptcies, but now they have set their sights on struggling municipalities, “and no place beckons like Detroit,” according to a report in Reuters called “Analysis: Hedge funds in search of distress take a look at Detroit.” With Detroit’s billions of dollars in long-term debt, Reuters notes that the city’s bankruptcy would be comparable to some of the largest corporate restructurings, should it go down that route. The size of Detroit’s debt means that the hedge funds could take large chunks of it at time – hundreds of millions of dollars – making it a more attractive investment.
5 Stocks This Growth-Oriented Hedge Fund Is Most Committed To (Seeking Alpha)
Bluefin Investment Management is a value-oriented hedge fund founded and managed by Brian K. Russell. During the first quarter of 2013, they have made important changes in their equity portfolio, which can be approximated thanks to their latest 13F filing with the SEC. The fund’s new lead equity investment is in a biotech player, closely followed by a popular apparel stock. The biggest position in Bluefin’s latest 13F is Sequenom, Inc. (NASDAQ:SQNM), a biotechnology firm. The hedge fund has increased its stake in Sequenom by 20% quarter-over-quarter. The reported value of their investment is approximately $10 million.