Hedge Fund Manager Suggests That The Market Is Rigged (HedgeCo.net)
American hedge fund founder and money manager for George Soros said in an interview with Goldman Sachs Group, Inc. (NYSE:GS) that his particular set of skills are no longer needed. “Ten years ago, if the stock market had done what it has just done now, I could practically guarantee you that growth was going to accelerate.” Stan Druckenmiller said, “Now, it’s a possibility, but I would rather say that the market is rigged and people are chasing these assets, without growth necessarily backing confidence. It’s not predicting anything the way it used to and that really makes me reconsider my ability to generate superior returns. If the most important price in the most important economy in the world is being rigged, and everything else is priced off it, what am I supposed to read into other price movements?”
Sony chief says time needed to study proposal from US hedge fund, promises investors revival (News1130)
Sony Corporation (ADR) (NYSE:SNE) needs more time to study a key proposal from a U.S. hedge fund to spin off a part of its entertainment unit as a way to propel its fledgling revival, the chief executive told shareholders Thursday. Sony Chief Executive Kazuo Hirai was speaking to a Tokyo hall packed with thousands of investors for an annual general shareholders’ meeting, where the proposal from Third Point hedge fund, led by activist investor and billionaire Daniel Loeb, was high on people’s minds. It was the first question from the floor. Hirai reiterated his position that Sony takes the proposal seriously, and it will be discussed by the company board. But he ruled out a quick decision.
Former Star Hedge Fund Manager Launches Golf Business Blog (Golf Club Business)
ClubCrown by VIVE CEO Andrew Glaser has launched a golf business blog. As a Former Hedge Fund Portfolio Manager, Mr. Glaser is in a unique position to opine on golf trends and their implications on the industry. In his first blog, Mr. Glaser analyses the replacement cycle of drivers, fairway woods and hybrids. His conclusion is that golf equipment sales could decline up to 40% in the next few years. This prediction is supported by a review of replacement cycles in the TV industry.
Nokia Corporation (ADR) (NOK): Here’s What This Top-Earning Billionaire Has Been Buying (Insider Monkey)
Today, let’s look at Moore Capital Management, managed by billionaire Louis Moore Bacon. Bacon is known for employing a global macroeconomic focus in his investing, and has been among the top 20 money earners since the 1990s, per GuruFocus.com. The company’s reportable stock portfolio totaled $6.2 billion in value as of March 31, 2013. The biggest new holdings are call options on the iShares Russell 2000 ETF and shares of the SPDR S&P Retail ETF.
Other new holdings of interest include Nokia Corporation (ADR) (NYSE:NOK), which has struggled in recent years and sits in penny-stock territory. It has been regaining its footing, providing less developed economies with less expensive mobile phones and also partnering on Windows phones.
Credut: Nokia Corporation (ADR) (NYSE:NOK)
Hedge funds brace for renewed debt crisis (Reuters UK)
The euro zone’s debt crisis may be far from over, while Japan’s money-printing gamble to revive its economy could destabilise global markets if it doesn’t work, some hedge fund managers say. They are taking the view that the rally in financial markets over much of the past year, fuelled by central bank money printing, could mask a failure to tackle some European countries’ and banks’ debt problems, and the sell-off of recent weeks may be the start of a longer downward move. “(A Cyprus-style bailout) will probably happen somewhere in Europe again,” said Galia Velimukhametova, fund manager at GLG, part of hedge fund manager Man Group (EMG.L), at the GAIM conference in Monaco on Tuesday.
Liongate’s Mark Parsonson outlines the attraction of hedge funds (Investment Europe)
Mark Parsonson, executive director of Liongate Capital Management, says there are key advantages in the hedge fund approach, which make them an attractive capital allocation option. Global monetary policy has succeeded in creating asset price inflation by distorting the productive capital allocation function of markets. Against a backdrop of weak economic growth, markets have benefitted from the unprecedented expansion in global liquidity. Long-term equity valuation measures, such as Tobin’s q and CAPE – indicate over-valuation. Nominal bond yields have declined to levels for which there are few, if any, historical precedents.
Karvy Capital’s hedge fund eyes Rs 100 cr by mid-August (Economic Times)
Karvy Capital, part of financial services group Karvy, today said it expects to attract inflows of about Rs 100 crore from high networth entities for its newly launched hedge fund. The asset management company has come out with ‘Systematic Edge Fund’ that would target high networth individuals and select institutions. “We aim to raise about Rs 100 crore for this fund by mid-August. This fund would be a multi-strategy absolute returns hedge fund and would ensure low volatility,” Hrishikesh Parandekar, CEO and Group Head for Broking, Wealth Management and Asset Management, said here.
Argentina Blasts Elliott Over Iran Criticism (FINalternatives)
The battle between Argentina and its hedge-fund creditors has taken yet another nasty turn. Argentina is furious over a recent media campaign in the U.S.—reportedly paid for by Elliott Associates affiliate NML Capital—criticizing the country’s relationship with Iran. At issue is the January memorandum of understanding between the two countries to investigate the 1994 bombing of a Jewish center in Buenos Aires, which Argentina has blamed on the Iranian government.
Firebird Co-Founder Lists ‘Buddhist-Inspired’ Princeton House (FINalternatives)
A hedge-fund-manager-turned-philosophy-teacher is selling his Buddhist-inspired New Jersey home. Firebird Fund Management co-founder Daniel Cloud has listed the nine-acre Princeton property for $3.575 million, a discount to the $3.7 million he paid for it in 2007. Currently a philosophy lecturer at Princeton University, Cloud told The Wall Street Journal that the 7,000-square-foot home was simply “too much house for one person.”