The European asset quality review is on its way! Or at least details of how the ECB plans to run the so-called AQR are due this month. We expect fine tooth combs, desk lamps in faces and penetrating stares.
But, as the Economist explains, it is not a stress test. That would be all about simulating disaster to spot it in advance. Read more
AQR Capital Management – the quantitative hedge fund group run by former Goldman trader Cliff Asness – has been forced to shelve plans for an IPO.
According to the New York Post, AQR saw several large investors pull money from the firm’s flagship $38bn fund after it posted poor figures for October. The AQR Absolute Return fund dropped 3 per cent in the last month, down 6 per cent on the year. Read more
Renaissance Technologies, the $30bn hedge fund run by billionaire mathematician James Simons, is considering selling a minority stake to a big outside investor or group of investors in coming weeks. The move suggests that Renaissance may believe the crisis in the US credit markets will be short-lived. This bullishness comes as hedge fund groups such as AQR and private equity firms including KKR are proceeding cautiously with planned IPOs. The Renaissance group said it has no current plan to sell a stake or stakes, and is said to be considering direct stake sales similar to those being considered by SAC Capital.
Thanks to Dealbreaker, another explanation from the computer-loving horse’s mouth. It’s AQR’s missive to investors.
August 10, 2007 Read more
With the backdrop of widespread market turmoil, it looks a brave move. Just as the Times was reporting that nearly $38bn of planned US floats are hanging in the balance, AQR, one of the world’s largest hedge funds, is looking to raise $500m in an IPO.
The FT reports that AQR plans to sell about 10 per cent of the firm in a listing, valuing it at $5bn. Scheduled for today, an SEC filing might yet fail to materialise, the story adds. Read more
JPMorgan and Goldman Sachs have lined up key roles advising Apollo Management on its expected IPO, the first signs of a comeback by other Wall Street banks after the early dominance of Morgan Stanley and Citigroup in the battle to underwrite private equity floats. Apollo is expected to sell shares to the public and a minority stake to an investor. Goldman is also said to be a lead underwriter for AQR, the hedge fund group expected to file for an IPO in the coming weeks.