Posts tagged 'Hedge Fund'

Greece to pay: no default today

From Reuters:

Greece will pay holders of a 430 million euro bond that matures on May 15, a government official said on Tuesday. Read more

Salida Capital says collapse rumours ‘unfounded’

Salida Capital, a Toronto-based hedge fund, has said speculation of its collapse are “unfounded”, Bloomberg reports. According to the news agency, the fund has now increased its hedging in energy and other holdings as oil prices fall. In a report to clients the fund said “we’ve now raised our level of hedging in both the energy sector and the broad market”. Salida told investors in May that commodity prices were in a correction and were poised to rebound, adds Bloomberg. At the time, Chief Executive Officer Courtenay Wolfe said her firm managed about $900m in assets, focusing on natural resources, with about 50 per cent of the investments in Canada. The company’s Salida Strategic Growth Fund has dropped 20 percent this year, including a 17 percent drop in the past month, according to data compiled by Bloomberg.

Money for nothing

It’s the £10,000-a-seat ARK charidee hedge fund bash this evening and to mark the event we have an interesting graphic from the Short View’s James Mackintosh.

It shows hedge fund performance — where HFRI is the monthly, illiquid index, and HFRX the daily liquid index, which excludes many of the best-performing older funds that don’t offer liquidity — versus a simple portfolio of 60 per cent equities, 40 per cent bonds, rebalanced once a year. Read more

Cargill agrees $24bn spin-off of Mosaic

Cargill, the largest privately held US company, has agreed to spin off its 64 per cent stake in fertiliser producer Mosaic in a $24.3bn deal that could satisfy a restive shareholder, the FT reports. The grain-trading-to-hedge funds Minnesota company has owned a majority of Mosaic since its 2004 creation. The announcement comes as rising global food demand and strained supplies have sent the price of fertiliser soaring. The 146-year-old Cargill is still controlled by about 80 members of the Cargill and MacMillan families. It said that the transaction would keep it privately held and satisfy the “diversification and distribution needs” of charities formed after the 2006 death of Margaret A Cargill, a shareholder and granddaughter of founder William Cargill. Her charitable trusts, which owned 17 per cent of the company, had been lobbying to sell the stake.

More Goldman traders to exit for funds

The last big proprietary trading team at Goldman Sachs has begun raising money to start a new hedge fund independent of the bank, for launch Q2 of this year, the FT reports. The team – led by two senior members of Goldman Sachs Principal Strategies desk, Daniele Benatoff and Ariel Roskis – has already secured a $300m investment from Brummer & Partners, according to people familiar with the plans said. GSPS is the bank’s “secretive equities arm,” Financial News says, and the move is on the back of the Volcker rule, which prohibits banks risking their own capital in speculative trades.

Risky business in correlation and volatility

Don’t short schadenfreude yet – it’s still tough at the hedgies.

From Reuters on TuesdayRead more

JPMorgan near $6bn Brazil hedge fund deal

JPMorgan Chase is close to acquiring a $6bn hedge fund run by Brazil’s former central bank chief in a move that will deepen the US financial group’s exposure to fast-growing developing markets, reports the FT. JPMorgan has almost sealed a deal to buy a majority in Gavea, a seven-year-old hedge fund co-founded by Arminio Fraga, former president of the central bank of Brazil. The acquisition, which could be announced as early as today after months of talks, underlines JPMorgan’s desire to expand outside the US. Like other Wall Street chiefs, Jamie Dimon, JPMorgan’s chief executive, wants to increase his company’s presence in fast-growing emerging markets at a time when developed economies are facing years of sluggish growth.

Burger King in talks with hedge fund

Burger King is in talks with 3G Capital, a little-known investment fund, about a deal that could see the US burger chain return to private ownership for the second time in a decade, reports the FT. According to people familiar with the matter, an agreement could be reached within days, although they warned that as the details are yet to be finalised the talks could still collapse. 3G is a hedge fund group, whose biggest investors are wealthy individuals in Brazil, said one person familiar with the fund.

Sad twist in the K1 case

Remember K1, the mysterious German fund of hedge funds that left banks including Barclays, BNP Paribas and JP Morgan nursing some nasty losses?

Its founder was Helmut Kiener, a psychologist and creator of the “K1 fund allocation system,” which generated, cough, extraordinarily consistent returnsRead more

A real chance to be a trader

Have you wondered what it is like to be a real stock market trader? Have you been secretly memorising ticker symbols? If you happen to live in the UK, here is that once-in-a-lifetime chance: via hereisthecity.com, Century Films and the BBC are looking for 5 non-City types to take part in a trading experiment:

Participants will be provided with capital by a successful hedge fund entrepreneur and will be given the opportunity, after some training, to trade in the markets. Read more