Hedge Fund Elliott: Government Policies Paved Way For Risky Bets (Reuters)
Hedge fund titan Paul Singer blamed government policies for encouraging traders to make concentrated bets in “overpriced” securities and markets and said it is “nutty” to hold bonds at their current high levels. Singer, who founded the $25 billion Elliott Management Corp, has long railed against government and central bank policies, blaming years of low interest rates for pushing markets to unjustified highs and pushing the work of structural reforms down the road.
Cohen’s Point72 Starts Website to Hire College Graduates (Bloomberg)
Steven A. Cohen’s Point72 Asset Management said it started a website to assist the billionaire’s family office in attracting investment talent, which includes a new push to recruit people right out of college. “We’ve launched a campus recruiting program for undergraduates unique among hedge funds,” Point72 spokesman Mark Herr wrote in an e-mail about the new website. “We are committed to building from within, to promoting homegrown talent. Point72.com will assist our talent recruitment.”
Bill Ackman Takes A Break-For Now (CNBC)
Bill Ackman appears set to take it relatively easy for a few months after a slew of activist investments produced knockout performance in 2014. Ackman’s hedge fund firm, Pershing Square Capital Management, has far less than 10 percent of its $18.2 billion in free cash—under the amount usually needed to mount a fresh campaign, according to a dinner presentation for investors Jan. 29. The specific amount is about $500 million, according to The New York Post.
Einhorn’s Greenlight Lost 2.5% in January as Stocks Dropped (Bloomberg)
Greenlight Capital, the $11.8 billion investment firm led by billionaire David Einhorn, fell 2.5 percent in its main hedge fund in January, according to an e-mail sent to investors that was obtained by Bloomberg News. The fund declined as the Standard & Poor’s 500 Index dropped 3.1 percent last month, the biggest drop for the period in a year, amid concerns that slower overseas growth, the plunge in crude oil and a stronger dollar could hurt the American economy.
Hedge Fund Brevan Howard’s Fortunes Blighted by Billions in Outflows and Management Row (Wall Street Journal)
For more than a decade, Brevan Howard traced a smooth upward path to become one of the most powerful hedge funds in Europe. In recent months, its fortunes have waned. Brevan is headed by Switzerland-based billionaire Alan Howard and cemented its reputation by making big gains during the credit crisis. Mr. Howard, 51 years old, who was born in England, ranked 12th in a recent list of the greatest hedge-fund managers compiled by LCH Investments NV, with net gains of $17.4 billion since his fund’s inception.
From Hedge Funds To Juice, And Back Again (CNBC)
Michael Karsch is hoping to apply the lessons of juice to hedge funds. The prominent investor closed his stock-focused Karsch Capital Management in 2013 after 13 years and peak assets of $3.4 billion. He then invested and helped build Juice Press, a New York-area chain of juice bars that sells ultra-healthy vegan beverages. The business, founded by former professional Thai boxer Marcus Antebi, has grown to more than two dozen locations and a valuation of $100 million, up from about $15 million when he first invested.
Bill Ackman’s Latest Pick: Fellow Hedge-Fund Manager Phil Hilal (Wall Street Journal)
Hedge-fund manager Bill Ackman has built a career off of making investment decisions. His latest pick: hedge-fund manager Philip Hilal. Mr. Hilal, age 38, plans to launch a stock hedge fund in the second quarter of this year called Clearfield Capital Management that will use both fundamental and event-driven strategies, said people familiar with the matter. It may also invest in some debt. Mr. Ackman said he’s committing the largest sum he’s ever invested with another hedge-fund manager, though he declined to say the amount.
Hedge Fund Analysts Take Uber Model to Recruiting (CNBC)
When Brett Adcock and Adam Goldstein were analysts at hedge fund Cedar Hill Capital covering the staffing and headhunting industry, they noticed something missing: technology. So in March 2013, they decided to hire a team of eight engineers and shake things up. Their firm, Vettery, specializes in placing professionals in roles at investment banks, private equity firms, hedge funds and other high-finance positions.
Hedge-Fund Bulls Betting Most on Gold in Two Years: Commodities (Bloomberg)
Hedge funds are the most bullish on gold in more than two years, betting the metal’s allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion. Speculators increased their net-long position by 80 percent this year, U.S. government data show. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.
Secret hedge fund shorts revealed (CNBC)
Six hedge fund managers gave their best investment ideas at an exclusive—and private—conference, including new bets against companies. The investors were part of a session to present one long and one short idea each at Morgan Stanley’s “Breakers” conference, put on annually by the bank’s hedge-fund-servicing unit at the posh Breakers Hotel in Palm Beach, Florida.
