Chanos takes on Buffett, calls Exxon and fellow oil majors a ‘value trap’ (MarketWatch)
When the “Oracle of Omaha” talks, people listen, which is why the oil sector and Exxon Mobil Corporation (NYSE:XOM) -0.02% got lots of attention after regulatory filings revealed Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) had taken a major stake in the company. While Buffett’s move on Exxon looked to some like a contrarian call, legendary short seller Jim Chanos was positively growling over the oil sector Tuesday, telling the Reuters Global Investment Outlook Summit that his Kynikos Associates fund is bearish on national oil companies and the integrated majors, in New York on Tuesday. …Commenting directly on that Berkshire BRK.A -0.08% BRK.B +0.06% stake, Chanos said Buffett likely has “his reasons, but, unmistakably the returns are dropping”:
Hedge fund expert: Bermuda gets regulation balance right (RoyalGazette)
The head of a hedge funds watchdog yesterday said Bermuda had hit the right balance on business regulation. Dame Amelia Fawcett, chairman of the London-based Hedge Fund, Standards Board (HFSB), said a global move towards tough regulations might not always be the best way of policing high finance — and that too many rules could end up damaging the sector and slowing the recovery from the global recession. But Dame Amelia added: “Bermuda is getting it right. It’s not that it’s a light-touch environment — it’s sensible.” And she added: “If people don’t think you’re doing a good job, you hear about it.”
U.S. Bancorp Fund Services, LLC Acquires Quintillion Limited (HeraldOnline)
U.S. Bancorp Fund Services, LLC, a subsidiary of U.S. Bancorp (NYSE:USB), announced it has agreed to acquire Quintillion Limited (Quintillion), an Ireland domiciled full-service hedge fund administrator. The announcement supports U.S. Bancorp Fund Services’ strategic initiative to expand its alternative investment servicing network supporting the European investment community. “This acquisition continues to showcase the long-term commitment of U.S. Bancorp to grow our securities services business,” said Terrance Dolan, vice chairman of U.S. Bancorp Wealth Management & Securities Services.
From Hedge Fund to Family Office (Forbes)
Some hedge fund managers have transformed their hedge funds into family offices. This year Melissa Ko’s Covepoint Capital and William Collins’ Brencourt Advisors have made the transition. Some more notable names such as George Soros, Carl Icahn and Stanley Druckenmiller have also converted their hedge funds into family offices. And, Steve Cohen may very well be doing the same with SAC. There are a number of reasons for this and one that’s at the top of the list is the increasing regulatory environment. According to Richard Flynn, principal, the Rothstein Kass Family Office Group, “Unlike hedge funds, family offices don’t need to register as investment advisers with the US Securities and Exchange Commission.
Anthony Hilton: Now’s a good time to embrace hedgies (Standard)
The past five years have been dire for hedge funds and particularly those which make big bets on market directions — be it in commodities or currencies. The HFRI macro hedge-fund index has dropped 15.5%. Over the same period global stock markets as measured by the MSCI World Index have gained 57.2%. Yet this month Goldman Sachs Group, Inc. (NYSE:GS) announced the launch of Petershill II. This is — or will be — a fund which invests in hedge-fund managers as distinct from the funds they manage.
Eton Park partners set to depart hedge fund (eFinancialNews)
The departing partners, who are expected to leave by early 2014, are Isaac Corré, an original partner who has been at the firm since it launched in 2004, and Josh Astrof who joined in 2005, the people said. Corré was responsible for event-driven investing, while Astrof focused on investing in stocks. It was unclear on Tuesday why they plan to leave and what they intend to do next. A spokesman for New York-based Eton Park declined to comment. Mindich launched Eton Park in 2004 with more than $3 billion, making it one of the largest-ever launches in the hedge fund industry, despite stringent terms for investors.
