Sandell Debuts New Activist Fund with $100mn in Assets (InstitutionalInvestorsAlpha)
Thomas Sandell‘s New York-based firm Sandell Asset Management has officially launched its new activist hedge fund. The Castlerigg Active Investment Fund began operating in August with $100 million. Sandell hopes to eventually raise about $2 billion for the fund. It’s an ambitious goal that would effectively triple the total assets at his New York firm, from a current $1 billion. Sandell’s new fund will emphasize the middle market,…
Are hedge funds really such a great investment for Pa. pensions? (Pennlive)
The hedge fund business is a great deal for those who run hedge funds. Typically, the managers charge a fee of “2 and 20” – 2 percent of the value of the assets they’re managing, plus 20 percent of the profits they produce. The New York Times reports that one hedge fund baron, Barry Rosenstein, spent $147 million on an estate in the Hamptons, while another, Daniel Loeb, dropped $46 million on a painting by Mark Rothko. Whether hedge funds are a great deal for big institutional investors, like Pennsylvania’s two big public pension funds, is another question.
Two Major U.K. Schemes Join Hedge Fund Pullback (WSJ)
Two of the largest pension funds in the U.K. are cutting their exposure to hedge funds amid a growing backlash against high fees and lackluster performance. The £20 billion ($32.4 billion) Railways Pension Scheme currently has £1 billion invested in hedge funds but investment director Paul Bishop said it was looking to reduce this “significantly.” Mr. Bishop said: “We believe that hedge funds in aggregate offer a poor trade-off between expected returns and cost.” The £39.6 billion BT Pension Scheme has also been reassessing its position, according to several people familiar with its thinking.
David Einhorn Makes $92 Million From Bagels (BusinessInsider)
David Einhorn just made over $92 million on a bagel company. Einstein Noah Restaurant Group, Inc. (NASDAQ:BAGL) announced on Monday that it reached an agreement to be acquired for $20.25 per share in cash, or approximately $374 million. In afternoon trade on Monday, shares of Einstein were up more than 50% to about $20.15. David Einhorn‘s hedge fund, Greenlight Capital, is the largest stockholder of Einstein Noah Restaurant Group and owns more than 35% of its shares, according to the company.
Icahn Leads 60-Plus Alts. Honchos On Forbes 400 (Finalternatives)
Times may be tough for hedge fund managers, but you wouldn’t know if from a glance at Forbes magazine’s annual ranking of the richest Americans. More than one-sixth of the members of the Forbes 400 have ties to the alternative investments industry. And they are once again led by Carl Icahn, whose fortune grew by another 27% to $25.9 billion over the past year, good enough for 16th place on a list once again headlined by Microsoft Corporation (NASDAQ:MSFT) founder Bill Gates, with $81.2 billion.