No letup on risk for hedge funds this December (CNBC)
A long-held perception is that hedge funds, especially those up big for the year, like to take it easy in December. Why keep risk on, the thinking goes, when you can guarantee a fat, marketing-friendly return for the year? “Do I hope they are locking in their profits? I sure the hell hope so,” said financial advisor Ed Butowsky of Chapwood Investment Management. But anecdotal evidence, data and conversations with investors in hedge funds show most are standing by their bets this year and keeping risk on. Take Philippe Laffont‘s Coatue Management. The technology and Internet-focused hedge fund manager with $7.51 billion in assets could sit on his 16.64 percent gain through November by lowering risk levels or shifting to cash.
Fox News Neutralized, Soros-Backed Group Declares Victory (NewsMax)
The liberal media-watchdog group backed by billionaire George Soros says its “war” on Fox News is over, claiming it has neutralized the right-leaning network and no longer sees it as a threat. “It’s not just that it’s over, but it was very successful,” Media Matters Executive Vice President Angelo Carusone bragged late this week to The Huffington Post. “To a large extent, we won,” he said. This week Media Matters gave the Huffington Post a look at its internal strategic plan for the next three years. Fox, which became the single focus of the activist group founded by bestselling author and journalist David Brock, has made key changes in programming that makes it no longer a worry to the left and the Obama administration.
Millionaire Playboy Arpad Busson to sell EIM Group to Gottex (Independent)
Arpad “Arki” Busson, one of the world’s best-known hedge-fund managers, is set to merge his $3 billion (£1.83 billion) EIM Group with Switzerland’s listed Gottex Fund Management to create a business managing $10 billion by mid-2014. Busson is best-known for founding the ARK charity ball held annually by hedge-fund managers which attracted the rich and famous until it was postponed this year. He is engaged to actress Uma Thurman and counts Farrah Fawcett and Australian supermodel Elle Macpherson among former partners.
Hedge Fund Lions’ Den: Emerging managers learn their fate (Risk)
The dramatic conclusion of Hedge Fund Lions’ Den starts with a frank and honest exchange of views by the three industry experts. Stanley Fink, the godfather of the hedge fund industry, leads a discussion with fellow lions Aberdeen Asset Management’s Andrew McCaffery and Luke Ellis from Man. The three examine the proposition of the emerging managers taking part: Charles-John (CJ) Donley and Robert Toffel from Strategis Capital Management; Neil Meadows of Laurentia Funds; and Christina McGuire and Gordon Eichhorst from Aperios Partners Investment.
Calpers boosts Asia hedge fund Double Haven’s assets to $710 mln (Reuters)
The California Public Employees’ Retirement System (Calpers), the biggest U.S. public pension fund, has invested about $100 million in Asian credit hedge fund Double Haven, a fresh sign that investor interest in Asia-based managers is rekindling. Although the hedge fund industry in Asia suffered net outflows of more than $4 billion in 2012, an average 15 percent return through the end of November this year has drawn investors, helping the industry raise more than $10 billion this year, according to data from Eurekahedge. Calpers will invest in Double Haven’s long/short credit hedge fund and the investment will boost the firm’s total assets under management to more than $710 million, the hedge fund’s chief executive, Greg Donohugh, told Reuters.
Credit Suisse to fund software marketplace (FT)
Credit Suisse Group AG (NYSE:CS) will finance an online marketplace for investment banking and hedge fund software, in the latest attempt by a bank to reduce the sector’s rapidly spiralling technology costs. The launch of Eco Financial Technology next month highlights how investment banks are under enormous pressure to cut fast-rising costs as moves towards electronic trading and severely tighter regulations push up IT expenses. “The costs for platforms and IT are one of the biggest headaches for top bankers,” said Chris Wheeler, analyst at Mediobanca.