Hedge Funds Unfazed as Greece Drama Continues
(CNBC) – The small group of hedge funds betting on a Greek recovery remain invested, still hoping that assets like government bonds and bank stocks will rally once a political solution is reached on the nation’s financial obligations.
“[There’s] no change on the expectation of a deal,” Diego Ferro, co-chief investment officer of $1 billion global investor Greylock Capital Management, said in an email. “This problem has been political from the beginning, the amount of money involved is not that big. So you would expect some bickering to last until it is signed.” Greylock owns government bonds and bank stocks.
Other hedge funds to bet on a Greek recovery include Third Point and Alden Global Capital via Greek recovery-focused funds. Perry Capital and Knighthead Capital Management are among those that own Greek government bonds, according to recent conversations with people familiar with the situation.
Read the entire article at CNBC
More coverage: Reuters and Bloomberg Business
Korea Fund Has $18 Billion at Stake Backing Samsung on C&T
(Bloomberg Business) – In the fight between a foreign hedge fund and the biggest conglomerate in South Korea, the state-run pension may have the swing vote. It will probably side with Samsung Group for reasons that go beyond nationalism.
Korea’s National Pension Service is the biggest shareholder in Samsung C&T Corp. with 10.15 percent of common shares, making its support vital to U.S. activist investor Paul Elliott Singer in his attempt to block a proposed takeover of the company by another Samsung affiliate, Cheil Industries Inc.
It’s a common position for South Korea’s biggest investor. The NPS is used to being caught between the competing interests of business stalwarts and minority shareholders. Its stakes in at least 12 listed Samsung affiliates, worth $17.8 billion, may force its hand on C&T because with the takeover so integral to Samsung’s once-in-a-generation leadership transition, the fund can’t evaluate the deal in isolation.
Read the entire article at Bloomberg Business
More coverage: Financial Times and The Wall Street Journal
Citadel Preps New Equity L/S Strategy, Rehires Runnfeldt
(FINalternatives) – Former Citadel trader Jeffrey Runnfeldt is returning to the hedge fund to run a new global long/short equity division.
The new effort, which reportedly will be allocated $1 billion of the $26 billion managed by Ken Griffin’s famed investment company, will eventually be centered around ten trading teams drawn from both current employees and new hires, according to The Wall Street Journal.
Runnfeldt retired from Citadel in 2012 after a ten-year career. He became co-manager of global equities for the fund in 2009 along with Brandon Haley and Steve Weller. Prior to Citadel, he held positions at Montgomery Asset Management and BT Alex Brown. Rare among senior hedge fund executives, Runnfeldt began his career as a bank examiner at the Federal Reserve Bank of San Francisco.
Read the entire article at FINalternatives
More coverage: The Wall Street Journal and Reuters