Paulson Hedge Fund Keeps Hold on Gold (SmallCapNetwork)
Gold prices have been fluctuating, in small amounts in the past few weeks but that did not bother billionaire hedge fund owner John Paulson. Paulson & Co., the largest investor in SPDR Gold Trust (ETF) (NYSEARCA:GLD), kept its stake in the gold-backed exchange-traded fund. Amid dipping prices, SPDR showed a modest increase as the holdings in the fund rose by 1.79 tonnes to 782.25 tonnes last Thursday. Reuters said the increase was a notable rebound from its annual loss in 2013, considered the biggest loss in the last 32 y ears.
Marc Faber thinks a 20% collapse in market is coming (EconomicCollapseNews)
Marc Faber, legendary contrarian investor and editor of the Gloom, Boom & Doom Report, is continuing his bearish ways on the United States stock market and overall economy as he believes U.S. stocks are overvalued. “I don’t regard this as a very healthy market,” Faber told CNBC on Thursday from Singapore. “The U.S. market is in a very dicey position where it could easily drop 10, 20 percent.” He added that some stocks have already declined by these percentages, such as technology and biotech shares. Faber noted that he would not feel comfortable allocating a substantial percentage of his money into equities because they were too expensive. However, if he were to acquire equities it would be in the emerging markets.
Citigroup Trading Chief Mike Pringle Leaves to Join Hedge Fund (WSJ)
The global head of equities trading at Citigroup Inc (NYSE:C) +0.38% is leaving the bank, Financial News has learned, and is joining Louis Bacon‘s $12 billion hedge fund Moore Capital in Europe. Mike Pringle, who arrived at Citi in 2009 after roles at Bank of America Merrill Lynch and Credit Suisse Group AG (NYSE:CS) +1.41% will join Moore Capital later this year. A Citi spokeswoman confirmed Mr. Pringle’s departure. A spokeswoman for Moore Capital confirmed the appointment. Mr. Pringle couldn’t be reached for comment. Moore is a client of Citi and the split is “amicable”, according to a person familiar with the move.
Louisiana State Police boosts fund-of-funds manager allocations (PIOnline)
Louisiana State Police Retirement System, Baton Rouge, added a total of $18 million to existing hedge fund and private equity fund-of-fund managers, said Irwin L. Felps Jr., executive director. The $594 million pension fund added $10 million to private equity fund-of-funds manager Portfolio Advisors, giving the manager a total of $20 million. The pension fund also added $5 million and $3 million, respectively, to hedge fund-of-funds portfolios managed by Prisma Capital Partners and EnTrust Capital, giving each manager about $15 million. It brings the pension fund up to its 5% target to hedge funds of funds, Mr. Felps said. Funding comes from cash.
What to Expect From a Hedge Fund (WSJ)
There are many legitimate reasons to shun hedge funds. They are expensive—typically charging fees of 2% of assets under management and 20% of any profits. They often have lengthy lockup periods, so you aren’t always able to get your money back when you need it. And there are so many funds with inconsistent records that it is a challenge finding a manager whose performance justifies the steep fees. Yet there is one criticism that has been leveled at hedge funds recently that is unfair: poor performance relative to the S&P 500. Since the bull market began in March 2009, the critics will point out, the average hedge fund in the Credit Suisse Hedge Fund Index has gained an annualized 8.5% through April 30, versus 23% for the S&P 500, assuming dividends were reinvested.
Alternative Ways To Tap Into Alternative Investments (Forbes)
Anything investable that is not a stock, a bond or cash is commonly referred to as an alternative asset. Alternatives run the gamut from “real” assets like commodities, farmland, and timber, to sophisticated debt structures, derivatives contracts and partnership interests in privately-held businesses. Partnerships that involve publicly-traded securities but allow the manager to hedge by selling short are also considered to be alternatives. Alternatives are popular with institutional investors and wealthy individuals because their returns are perceived to have a low correlation with those of the stock and bond markets…
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